Toronto at a Breaking Point: The City’s Budget Crisis and the Cost of Inaction

Toronto is staring down a $107 million budget shortfall, and Mayor Olivia Chow isn’t sugarcoating it: the city is at a breaking point.

Two paths lie ahead — both controversial, both painful.

One would cut crucial funding for asylum seekers, forcing thousands onto the streets and overloading a shelter system already buckling. The other would raise property taxes, placing the burden squarely on homeowners — some already struggling with interest rate hikes and soaring cost of living.

This is not a debate about numbers. It’s about priorities, values, and who we believe deserves dignity in this city.

How Did We Get Here?

Toronto is Canada’s largest city, but our revenue model still runs like we’re a sleepy suburb from the 1970s. Unlike provinces and the federal government, municipalities can’t run deficits. That means Toronto must balance its books every year — even if it means cutting vital services.

So when the federal government refuses to adequately reimburse the city for housing asylum seekers — a national responsibility — the costs land squarely on the city’s doorstep. Toronto has spent $250 million on refugee shelter support in just the last two years. Of that, only a fraction has been repaid.

Mayor Chow has made clear: this isn’t sustainable. “We cannot do this alone,” she said this week. “Without federal support, we will be forced to make impossible choices.”

Who’s Responsible?

Let’s be blunt: Ottawa is shirking its duty.

Immigration is federal jurisdiction. Yet when refugees arrive — fleeing war, persecution, and political instability — it’s Toronto that houses them, feeds them, and keeps them safe. The Trudeau government’s silence on this shortfall isn’t just negligent; it’s dangerous.

Meanwhile, the province has largely left the city to fend for itself. And while property taxes in Toronto are lower than in many other Ontario municipalities, hiking them now — without long-term fiscal reform — is a Band-Aid on a bullet wound.

What’s at Stake?

If the city slashes funding for refugee housing, thousands could be forced onto sidewalks, park benches, or worse. Advocates warn of a humanitarian disaster — one that would disproportionately impact Black, Brown, and low-income communities.

If Toronto raises property taxes, backlash is inevitable — and possibly political suicide for those who back it.

But this isn’t just about policy. It’s about what kind of city we want to be.

Do we turn our backs on the most vulnerable? Or do we demand that higher levels of government meet their obligations?

Toronto cannot fix this alone — and we shouldn’t be expected to. The federal government must step up. Anything less is a betrayal of every Torontonian, whether you rent a basement apartment or own a home in Leaside.

Watch the Broadcast: https://youtu.be/ejnEGwkWO2E?si=-2bQe72N_7KuWUFz