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New Land Transfer Tax

OK, I know you all hate the Sun,

Indeed, and I positively relish the idea of going at their stats with a weed-whacker.

but here's a recent article that shows:
-the average city salary tops $60,000 per year

As has been shown, this is not at all out of the normal range of city salaries

-the number of city employees earning $100,000 and above more than doubled between 2004 and 2006 (that is, during Miller's first term in office.)

Indeed, but this has to be considered in light of the overall employment context. The only departments in which significant growth has occurred are provincially mandated services (including housing and social services) and Transit. With respect to the former, Toronto is charged with administering some of these provincially mandated programs, which inevitably requires staff on a management-leyel pay scale. As for the TTC, as has been stated previously, certain operators have been working overtime significantly above the average level for most employees, given that the service is seriously understaffed. This results in higher stated salaries... which result NOT from an increase in the number of $100,000 base salaries, but from insufficient staff to meet demand. Likewise, certain departments (urban planning is one of these) have experienced wage inflation NOT because the city is chock full of cash, or wants to spend your hard-earned money (the typical tax-and-spend arguement lobbed by the Sun), but because work there is so time consuming and undesirable that positions simply cannot be filled at lower pay-scales. I would also add that the easiest workers to fire tend to be seasonal and part-time workers (who are not unionized) - as these are let go due to funding erestraints, the remainder of the (usually unionized) staff might well argue in contract negotiations that the resulting deterioration in working environments deserves higher levels of compensation

In a related arguement, some have argued that the city's budget has increased by some $1.2 billion since Miller's first term began - the implication being that spending is wildly out of control, and that this is due to Mayor Miller's policies. What these statistics fail to appreciate is that the largest growth areas in the budget are 1) provincially mandated services (which the city has no control over, and which are rising MUCH faster than the rate of inflation, and 2) the TTC (which is, despite the growth in funding, nonetheless STILL operating at service levels insufficient to meet demand)

-a city of Toronto cleaner makes on average $20.91/hr., a parks labourer $20.45/hr. and a garbage collector $23.38/hr. Needless to say, these allegedly "competitive" salaries (which do not include some 23% extra in benefits) far surpass what's paid for similar duties in the private sector.

This may indeed be the case, and frankly I can't say I like it. However, the problem (as I see it) originated during Mayor Lastman's tenure, when the provincial government sent the then dispute between the city and the public service (as manifested by the famous garbage strike) to binding arbitration, and then basically imposed the union's demands on the city wholesale. As contracts set a precedent, other unions fought for, and won, similar concessions from the city.
Moreover, as I have previously stated, it's not like Mayor Miller's sympathies are likely to tend towards sympathy with your (or the Sun's arguement). His political leanings are, and always have been, quite clear on the matter of labour relations. Indeed, one could argue that compared to the messy Lastman years, the labour peace in this city has since then been rather refreshing.

-operating costs contracted out amount to $444 million or a mere 5% of this year's $7.79-billion budget.

A number of (admittedly city-initiated) reports indicate that the savings which could be derived from contracting out are likely to be minimal at best, and perhaps even neutral or negative. While I and others might look at these findings with some skepticism, I am fairly certain that the savings trumpeted by the Sun and others are vastly over-stated... even assuming that the city rescinds it's "90%" rule (which is highly doubtful, as the resulting hue and cry would put all previous bargaining stancs to shame). The city already contracts out a fair amount of services - especially in the transportation sector. In other departments, it has long been city policy to maintain an in-house staff to minimize the control a private partner mighyt have over contract negotiation. While I might agree that the pendulum has swung a tad too far towards that in-house staff in certain departments, I certainly don't buy the arguement that this issue is the definitive one w/r/t the current budgetary crisis.

Finally, comparing ANY statistics to the overall city budget of $7.8 billion is patently wrong-headed - the city only has direct control of approx. $1.4 billion - a good deal of the rest is either provincially mandated, or regulated by provincial legislation (i.e. safe staffing levels, etc.). Thus, if the city is contracting out $444 million on a core budget of $1.4 billion, then close to 30% of this number is represented by services performed by the private sector. Although I admittedly can't be sure as to whether the following statistic is valid either, as I don't know what proportion of provincially mandated/regulated services are ammenable to contracting out, I can certainly state that the appropriate number is NOT $7.8 billion - and thus, the proportion of contracted services (as a function of contractable services) is greater than the stated 5%.

-Miller refuses to consider unpaid time off for staff, similar to "Rae Days"

This is the most ridiculous arguement I have yet heard in this debate, and, barring a run on frontal lobotomies at council, will likely remain so. It is patently a political ploy to get Miller to "wear" both the "tax-and-spend" and "failed socialist" mantles - to box him into a corner. It is a ploy and nothing more. No union will sit down and take it, and Miller, positively, will not institute it. If you beleive otherwise, something is truly off-kilter in your brain somewhere.

-Miller refuses to contemplate reversing city council's recent pay raise

Another red herring. These contracts are signed and in force. Were this summer coincident with contraqcts coming up for renewal, I would certainly agree that cost pressures be taken into account in those negotiations. however, they are not. Re-openning contracts (some of which were based on binding arbitration imposed by the province itsefl) is a recipe for labour disaster. Moreover, it is possible that unions would have certain legal rights that they might be able to exercise anyways, limiting the utility of this route.

As for council's raise to themsleves - I've said it before and will say it again. It is pathetic that we would force councilors to accept a pay far below the regional average, when we ourselves seek and often obtain raises in our own lines of work. Councillors' pay had been forzen for quite a few years prior to this raise, which STILL only brings their pay to the average - NOT the fat-cat levels everyone seems to think them to be. And the statistic I have seen for the impact of this raise is $385,000 - a whoping 0.07% of our current budget deficit.

In sum, the Sun and others have proposed cost saving measures which either 10 are paltry and wholely symbolic in their impact on a budget deficit of $575 million; 2) are completely at odds with Mayor Miller's sympathies, which were widely apparent at election time and either accepted and dismissed by the voting public at two such occasions; or 3) politically motivated. their contribution to this arguement has been less than unhelpful - it has been deceptive and demeaning.
 
The City of Toronto is one of the region's largest employers and having their workers making a decent wage indeed plays a small role in keeping the economy humming.
Obviously you didn't study economics like I did. The wages of city workers are paid for by Toronto tax payers. So how does paying city workers higher wages, meaning that tax paying citizens of Toronto who don't work for the city have less disposable income stimulate the economy? All it does is redistribute income. There is no new money to stimulate the economy. The city workers get more money and the tax payers are left with less. It's a closed loop, zero-sum situation, get it? The only way that your assertion that high city wages stimulate the local economy could be possible is if city workers spend more of their income in the local economy than Torontonians who are not employed by the city. Somehow I doubt this.
 
Raise taxes, McGuinty says


Toronto has power to raise its own money before asking the province for help, premier says

July 24, 2007
Robert Benzie
Queen's Park Bureau Chief

http://www.thestar.com/News/Ontario/article/239276


GUELPH — Premier Dalton McGuinty says Toronto councillors should use the powers he gave them to raise taxes before pressuring the province for more money.

Speaking to reporters on a campaign-style swing here 78 days before the Oct. 10 election, McGuinty today made his first public comments on Mayor David Miller’s failure to hike land-transfer taxes and car licensing fees to help the cash-strapped city.

“We know that it’s not easy, but sometimes you’ve got to make these difficult decisions,†said the premier, who himself raised taxes after being confronted with a $5.6 billion deficit after taking office in 2003.

McGuinty, whose government gave the Toronto additional taxing powers so it could correct its fiscal woes, lashed out at the 23 councillors who voted to defer the planned tax increases until after the provincial election.

“I don’t myself think it’s particularly helpful to defer some of the difficult decisions that the city of Toronto must take,†the premier said, castigating councillors for lobbying for additional powers for the city then not using them.

“I would invite them to ask themselves why they sought that new authority in the first instance. Was it not with a view to acting on that authority? And I’m convinced that upon reflection councillors will want to make some difficult decisions that go along with their responsibilities,†he said.

“It’s authority, by the way, that no other municipality has. Take advantage of these new opportunities that we’ve created for you.â€

Emphasizing that the Liberal government has “done what we can to this point in time,†McGuinty noted a municipal-provincial task force on downloading will report early next year and there are no plans to expedite the report.

“We’re … sitting down with the city of Toronto and all our municipal partners at a provincial-municipal table in order to determine what more we might do together to further increase the strength of our municipal partners,†he said.

“We think we can do more but we want to do that through our table.â€

McGuinty was careful to stress his “very good, positive, constructive working relationship with Mayor Miller†and made it clear his criticism was directed at councillors opposed to the tax hikes.

“I know that the mayor has made a sincere effort to exercise some of that new power, but he’s having some difficulty following through on that through no fault of his own,†he said.

Noting that provincial funding to Toronto has increased “fivefold†since he took power, the premier said good news would be forthcoming if the Liberals are re-elected.

“The best predictor of future behaviour is past behaviour. Take a look at what we’ve done in terms of new funding for Toronto and the new authorities for Toronto. We want to keep working on them,†he said.

But asked specifically if that meant another bailout, McGuinty said: “That’s not what I’m saying.â€


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"the premier said good news would be forthcoming if the Liberals are re-elected."

outrage-ami150.gif



McGuinty: "The best predictor of future behaviour is past behaviour. Take a look at what we’ve done in terms of new funding for Toronto and the new authorities for Toronto."

Unintentional irony level: off the charts.
 
Politically speaking, this is not a happy place for the city to be in. If Miller raises taxes, brings in service charges and institutes other revenue generating actions exclusive to Toronto, the Premier could easily turn around at a later date and point out that Toronto has the money it needs and need not come to the province for more.

This was exactly the danger when the city received its "new powers." The citizens of this city get to have their own special taxes unlike other citizens of Ontario. The Premier is now throwing those "powers" right back in the face of the city. We get to continue covering provincial downloads from municipal taxes while the province can smile at not having to raise income taxes in an election year - or talk about how broken the tax system is.*

Score one for the province. We get to have a Premier-sized shoe up our ass.


*Or mention how he has generally failed to wrest virtually any of the revenue he says the federal government is short-changing the province of.
 
I never understood why the city pushed for greater taxing powers. What they should have done is refused to provide the downloaded services. Public Housing, for example, is an Ontario program, so the City should have refused, from day one, to cover the cost or administer the program. By taking it on we've shown the province that we're willing to do the job, so now the Premier washes his hands of the matter.
 
A dose of paternalism works well for the infantile

JOHN BARBER

July 25, 2007

Political weaselry has its costs, the proliferation of weasels being but one. City treasurer Joe Pennachetti reckons that council's cowardly failure to levy new taxes last week has already cost property taxpayers about $60-million.

That's just the price of pushing the decision off for three months, consisting mainly of forgone revenue.

By choosing to avoid one tough decision, deciding instead to put it off until it becomes irresistible, council gave away almost as much as it had by the time it finally concluded its dealings with MFP Financial Services many a long scandal ago - an innocent caper compared to this summer's "deferral" racket.

One stray vote cost taxpayers $60-million. That's the amount a majority of councillors invested in their so-called strategy to blackmail the province into giving them more of its own tax revenues.

When that gambit fails, as it must, the amount will likely become payable next spring in the form of a double-digit, across-the-board tax hike (which, of course, the rodential rump will blame on the mayor).

Premier Dalton McGuinty demonstrated admirable restraint yesterday when he criticized council's performance for what it was, without resorting to the justifiable insults, describing the deferral as "not particularly helpful" to the city's cause.

Difficult decisions are not easy, Uncle Dalton averred.

"And I'm convinced that upon reflection, councillors will want to make some [of the] difficult decisions that go along with their responsibilities."

It could have been worse.

Rather than ignoring the risible blackmail demand - "Give us money or we'll shoot this city!" - the Premier responded with barely ruffled paternalism. He sympathized with Mayor David Miller for experiencing "some difficulty ... through no fault of his own."

He almost completely resisted the deferrers' invitation to recite the same old arguments, allowing only that his government has increased funding to Toronto "fivefold" and then letting the matter drop - therefore not obliging the mayor to shout back the routine response that fivefold of nothing is still not enough.

He stated clearly what the deferrers pretended not to hear: The promise of fiscal rescue requires the city to act first by exploiting the new taxing power that it demanded and his government delivered.

Though he's still stinging from the defeat, which he is too quick to blame on the machinations of real-estate lobbyists, Mayor David Miller has likewise resisted the rote response - despite having accurately predicted today's mess when the silly deferral idea first arose at council.

"If we defer this and don't do anything," he said at the time, "it puts the province in a position where they can say, 'You had the opportunity. You had the opportunity and you turned it down.' "

They got fair warning from the mayor - that deferral would only undermine the city's cause - and full confirmation from the premier.

The $60-million gambit will be booked as a dead loss, with no hope of recovery by means of miraculous economies between now and January.

We'll suffer unnecessary debates about alarming, although easily avoided service cuts.

But at least we'll be spared more of the sterile government-to-government bickering the deferrers hoped to stir up.

The thing about paternalism is that it often works. In the case of municipalities rendered infantile by decades of paternalism, it becomes perversely necessary - like the cigarette needed to calm nerves made jumpy by the lack of a cigarette.

But other times it is simply welcome, on which occasions we call it leadership.

jbarber@globeandmail.com
 
I hate the way McGuinty acts like he's doing the city a huge favour by granting it the right to tax its citizens more. Since when are tax increases a good thing? I guess they are in McGuinty's bizzarro world. If higher taxes are a gift, then why doesn't he double Ontario income tax? People would just love it if he did them such a huge favour and he'd win the election by a landslide. Something tells me Tory will be the one who ultimately decides what is done about the downloaded services. I think Toronto might actually fare better under Tory.
 
Tory and Hampton have been avoiding the issue so far. I'm sure they'd prefer it'd go away. While all of this has been playing itself out, Tory has been expounding the virtues of providing tax payer money to religious schools. Hampton, otherwise, is rarely covered by the press.
 
I saw a Hampton a speach in person a few months back and he went on about farmers and increasing the minimum wage. He also talked about "the north" and how the NDP must get back to its roots and stop being viewed as a "Toronto" party. He never discussed transit, uploading of services, social housing or any other urban issue even once. I doubt he has any interest in addressesing Toronto's fiscal straightjacket which is unfortunate as the NDP is probably in a good position to pick up a few seats if they play this election right.

I hate the way McGuinty acts like he's doing the city a huge favour by granting it the right to tax its citizens more. Since when are tax increases a good thing?
They aren't never never a good thing and they aren't always always a bad thing. The world (including Ontario) is a far more complex place than TAXES = BAD, NO TAXES = GOOD.
 
"I don't mind paying taxes; they buy me civilization."

- Oliver Wendell Holmes
 
I was hoping Tory would be a breath of fresh air, but so far he just looks to be more of the same.

There don't seem to be any great Toronto/urban options in the election this year.
 
They aren't never never a good thing and they aren't always always a bad thing. The world (including Ontario) is a far more complex place than TAXES = BAD, NO TAXES = GOOD.
How about high taxes with poor services = BAD

When taxes go up faster than inflation and what the city provides is not expanded or improved, or even properly maintained, there is only one conclusion that one can make. Those higher taxes are all going to higher municipal employee wages. Is enriching city workers at the taxpayers' expense part of Miller's mandate? Is this what he was elected to do? Once you realize the unions got him elected, you start to understand his priorities. The unions are set to negotiate a new contract early next year. I wonder if Miller will advocate freezing their wages, because Toronto is out of money? That's how he's justified increasing taxes at a higher rate than inflation. So what's good for the goose is good for the gander. I look forward to next year when he says "no" to union demands for the first time in his life. Who am I kidding? It will never happen. The unions will get long term contracts stipulating pay hikes far beyond projected inflation rates as they always do. And then Miller will have to beg McGuinty to grant him the power to introduce a municipal income tax and sales tax to pay for it all. And McGuinty will happy to do so. That is, if McGuinty still has his job.
 
When taxes go up faster than inflation and what the city provides is not expanded or improved, or even properly maintained, there is only one conclusion that one can make. Those higher taxes are all going to higher municipal employee wages.

Here in the reality-based community, we refer to things like the above as a 'non sequitur'. Or, as a 'lie' - your choice.
 

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