Olivia Chow, Doug Ford announce 'new deal' working group amid Toronto's financial woes

Premier Doug Ford and Toronto Mayor Olivia Chow presented a united front Monday, saying the city's financial woes are not sustainable and announcing a working group to address them.

Shortly before the first official meeting of the two leaders since Chow took office, the province also announced it would be spending $26.4 million to help house asylum seekers in Toronto long-term, after refugees with nowhere to go were sleeping on city streets because of an overburdened shelter system.

Despite that announcement, the city's billion dollar budget shortfall was the focus of a post-meeting press conference.

Speaking to reporters, Chow put the city's financial position bluntly: "Whatever kind of revenue we — the city of Toronto, really doesn't completely care where the money comes from, as long as there's structurally a promise."

Feds expected to join new working group

When it comes to the city's budget woes, Ford said he and Chow expect the federal government will be invited to join the so-called "new deal" working group.

"It's certainly my expectation that any agreement will include additional financial support from the federal government," Ford said.

Chow said their discussion covered many topics. Both Chow and the premier agree the current financial arrangement "is just not sustainable," she said.

The working group will have results ready by the end of November, Chow said, in time for the city budgeting process.

WATCH | Ford wants to raise revenue without adding taxes:

Ford and Chow had their first official meeting. Here’s what they said about adding taxes

1 year ago

Duration 0:46

Toronto Mayor Olivia Chow and Ontario Premier Doug Ford held their first meeting on Monday since Chow was elected in June. When asked if he would support a municipal sales tax for the city, Ford wouldn’t answer directly. Chow, meanwhile, said she “doesn’t care” where the money comes from, as long as there’s “structurally a promise.”

Ford said the province wants the group to come up with a sustainable funding model so the city doesn't have to keep asking for money every few months or years.

Chow said Ford understands cutting core city services is not the way to go on the budget issues. 

"Right now, the city of Toronto is carrying over $1.1 billion worth of services on behalf of the provincial and federal governments," Chow said. "We're delivering the service we're just not getting the bills paid … the premier understands that."

During the campaign, Chow said the city would need a new deal with the province and federal government to address the budget shortfall. Ford meanwhile signalled he'd like to see the city's fiscal house in order before he hands over any cash. 

Asked if he will support a Toronto municipal sales tax if the working group recommends it — something Chow has been lobbying for — Ford did not answer directly. He said he's generally against putting "more of a burden on the backs of taxpayers."

Chow rejects premise city is in decline

When it comes to Ontario Place, Chow reiterated comments she made last week and said she wants the province to follow the city's planning process.

Asked if Chow sees Toronto as a city in decline, she cited the past weekend — full of multicultural events and the groundbreaking of a new affordable housing project — as proof it is not. 

However, she acknowledged that the city could be safer, after multiple violent incidents also took place over the weekend. 

"[Toronto] needs help … but I reject the premise we are in serious decline," Chow said.

Ford said Chow deserves a "fair shot," noting that she just began her tenure and she has a challenging job leading a changing city.

For Chow, getting support from Ford will be crucial for advancing her vision for Toronto. However, during the summer byelection campaign, Ford made it clear that he did not want Chow to win the city's top job. 

Ford said he and Chow have several shared priorities, including housing, public transit and major infrastructure projects. 

"We just had a great conversation," said Ford, before taking questions from reporters at Queen's Park. "Thrilled to be standing here with my friend, Olivia Chow."

Province announces funding for asylum seekers

Shortly before Chow and Ford met, the province announced it would be spending another $42 million to help cities move asylum claimants into long-term housing. 

Toronto will get $26.4 million from that total.

Many asylum seekers in Toronto were left with nowhere to go this summer after being turned away from the city's overburdened shelter system. In some cases, they have since been housed in community churches.

The money will come through the Canada-Ontario Housing Benefit, according to the news release, which provides people with help paying for rental costs. 

The province says the funding will be enough to assist about 4,000 new households across Ontario.

Meeting came after tension on campaign trail between leaders

"If Olivia Chow gets in, it'll be an unmitigated disaster," Ford said at the time. "Businesses are going to be fleeing Toronto. Businesses are terrified. Therefore, the workers should be terrified."

After the election, Ford softened. He said people expect them to work together and they will. 

"We're going to find common ground when we sit down, cause she's actually quite a nice person," he said.

Chow has also said she's sure there will be common ground between the two leaders.

WATCH | Olivia Chow's view on how she'll work with the premier: 

Olivia Chow says there is 'absolutely' common ground with Ford

1 year ago

Duration 2:31

Toronto mayor-elect Olivia Chow says Ontario Premier Doug Ford called her after her win Monday night and they spoke about shared goals. 'Number one, we both agree that we need to build housing,' she told CBC News. This comes after Ford said Chow would be an 'unmitigated disaster' for Toronto if she were elected mayor.