cdr108
Senior Member
looks like RF's $70 million wasn't from 'gravy' from trimming budgets but city revenues, plus his stat of 80% of budget on payroll is also incorrect according to the article, and is actually 48%.
that's in line with one of the charts i pulled earlier from US municipalities, except for NYC which is >100%, yet i'm under the impression Canada provides more of a social net vs. US, so we're getting alot of value for our $$$.
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“And so if we can find 70 million, I’m sure we can find 700 million” – the amount the city needs to close its annual budget shortfall. There is only one small problem. When he says he has “saved” $70-million, he does not mean he has cut that amount from what the city spends. In fact, most of it comes from what the city collects in taxes.
Included in the $70-million figure is $64-million from the cancellation of the vehicle registration tax earlier this year. That is a plus for taxpayers, but a minus for the city treasury, which must make do with $64-million less each year to pay for the services it delivers. Mr. Ford’s tax cut has made it harder, not easier, to balance the budget. So the mayor is way off base to claim he has found $70-million in budget savings in six months.
Either Mr. Ford is misleading the public or he simply does not understand the apples-and-oranges difference between money taken in and money saved. To make matters worse, he told Mr. Oakley that the city spends 80 per cent of its budget on labour. The real figure is 48 per cent. “The last thing we want to do is lay off, Johnny, but when it makes up 80 per cent of your budget, there’s a lot of gravy there,” he said. Oh dear.
The sad thing about all of this is that most people probably support Mr. Ford in his drive to get city spending under control. But if they are going to go along with big cuts, they want to know they will be done sensibly and humanely. Mr. Ford’s performance this week did not reassure.