Toronto Mayor David Miller had high hopes for Monday's federal budget, expecting sustainable funding for the city's ambitious transit plans, but that cash isn't coming.
"There was a special fund that funded public transit, which primarily benefit big cities -- that is not there," Miller told Â鶹´«Ã½ shortly after the budget was unveiled.
The mayor had also hoped to see the start of a national transit strategy.
"Every western country has one. That's how cities succeed economically and socially. And in fact we've gone backwards, as that funding that was there last year has not been continued.," Miller said.
Miller called the federal government's budget "a disappointing one for cities."
"The gas tax continues for a number of years, which we're pleased with, but in virtually every other respect, Canada's major cities' position is worse off," he said.
"And it's surprising because census figures just showed that more and more Canadians are living in cities, and we need to fund cities and we need to fund cities properly -- that's where the true fiscal imbalance lies in this country."
Miller said for the nation to prosper and flourish, the government must invest in major cities.
"If you look at Canada today, the role of Toronto, Montreal, Calgary and Vancouver is increasingly important. We're cities of national stature, of national importance, and we certainly expected the federal government to be building on the programs in which they work directly with Canada's major cities," he said.
"This budget goes in the other direction and I think that's extremely disappointing."
Miller had also hoped to see a one cent cut of the GST, which would have resulted in more than $400 million annually for cash-strapped Toronto.
"We need one cent of the GST to support city programs, and infrastructure, and public transit, and housing and childcare -- all those things the City of Toronto delivers."
He says the federal and provincial downloading of services has caused Toronto's debt to balloon to about $2.6 billion, and that number is expected to grow again this year.
On Friday, the city announced plans for a $6 billion light rail transit network that would crisscross the city and cover underserviced areas.
Toronto's budget does not have any dollars set aside for the massive project, as officials instead relied on securing the majority of funding from the provincial and federal governments.
The 15-year rail plan, which includes about 120 kilometres of new track, would cost the city about $400 million a year.
Prime Minister Stephen Harper did offer some transit support earlier this month when he announced $962 million to extend the TTC's Spadina subway line into Vaughan and improve transit in other Toronto suburbs.
Ontario pleased with funding
Finance Minister Jim Flaherty announced $3.2 billion to provinces for social programs, which means more money for health care, post-secondary education, affordable housing and infrastructure. The fiscal imbalance transfer should alleviate some of the burden on Toronto.
The Ontario government, which recently received a promise from Harper for $500 million to help phase out coal-fired power plants, was pleased to receive more cash and a more balanced revenue-sharing agreement.
Ontario's federal transfers jumped by $1.1 billion, from $11.65 billion in 2006-07 to $12.76 billion in 2007-08. Next fiscal year, transfers from Ottawa will increase by another $1.23 billion.
The budget also calls for Ontario to receive $100 million for daycare spaces, and another $300 million for post-secondary education in 2008-09.
"I'm going to just personally congratulate Mr. Flaherty on the working income tax benefit for low-income families," Ontario Finance Minister Greg Sorbara told reporters at a press conference.
"I think that's a progressive move. I think that will help those at the lower end of the income ladder and I think he's taken a good step."
A recent poll for Â鶹´«Ã½ and The Globe and Mail showed voters would rather see money go towards social programs (50 per cent) rather than cutting taxes (19 per cent).
Voters polled on the streets of Toronto on Monday said they wanted to see tax cuts, money for social programs and a renewed focus on the environment.
Ontario Conservative Leader John Tory wants Premier Dalton McGuinty to "better spend" the federal money.
"(McGuinty's) spent billions of dollars, and when people look at whether health care's better or education is better, I think they're concluding 'not really, we're not getting the results,'" Tory said.
The Conservatives believe McGuinty is sitting on a $3 billion "slush fund" that he will use to get re-elected in the fall.
The Ontario government is releasing its budget on Thursday.
With reports from Desmond Brown and Paul Bliss
