What's behind Miller's sudden budget surplus?

 I just came out of the Mayor's "important" announcement about this year's budget.

Besides the fact that he played coy with the media and the public by sending out a vague and cryptic media advisory, the Mayor's announcement of a $100 million surplus was surprising, but not shocking. With the increase in revenue from the Vehicle Registration Tax, the Land Transfer Tax, water rate increase, garbage tax, and other user fee increases, it is easy to see how the "surplus" could take place. I still find it surprising that the Mayor uses the word "surplus" to describe a budget that includes a tax increase. A true surplus means no tax increase in my books.

The Mayor will definitely have some explaining to do as to how the budget process created this surplus "out of the blue," when just a couple of months ago the budget hole was more than $500 million. Critics will definitely claim that the Mayor hid the surplus until it was politically opportunistic to use it.

Okay, enough of my cynicism, while the surplus was a surprise, the proposed allocation of that surplus was miraculous!

Instead of using the surplus to go on a spending spree, the Mayor has suggested using 25% of the money to reduce the residential property tax rate to 2.9% and the rest of the money to create a reserve fund to be used to offset the pressure for next year's budget process.

Wow! Where did this Mayor come from??

I think I have the answer...

One word: Legacy!

With this announcement, Miller has attempted to selflessly prepare the City and the new Mayor for the budget challenges that lie ahead. He has also created an opportunity for the left on Council to shift to the centre in order to be re-elected this year. With this new budget direction, the councillors and mayoral candidates on the left will be able to knock on doors during the campaign and show that they do have a prudent approach to governance and they aren't the spendaholics that the right has been successful at framing them as.

You have to hand it to the left on Council. When the chips are down, they do what ever it takes to remain in control, including becoming Conservatives.

This sudden epiphany will definitely cause tension on the left. The special interests groups will be raving mad about this announcement over the coming days and weeks. Who knows, Council may reverse this decision and spend away the 2011 reserve fund.

For the sake of the future of the City, I certainly hope that they maintain this direction, but as we all know, anything is possible at City Hall.

About Dan Bordonali

Comments

[B.(Green)Fish(66)]

Right on Mayor Miller...It hard to find a kind word anywhere nowadys, or a good politician..

Besides gettin' a little stinky with union pals during the garbage strike ..Mayor Miller has done an exceptional Job...

Way to go Mr. Miller...

All the best in the future

B.GreenFish66

Green/Clean Tech is now, Is the only Truly Real Future

[Michael]

Let's not forget we saved millions on the garbage strike. That was an inconvenience for the people for the budget.

[E Kelly]

Miller is a fool who has no vision, no plan and no legacy. Isn't it amazing what he can do with other peoples money? The sooner he leaves the better

[Kevin in Taxoronto]

It will be interesting to see how "stupid" the voters of Toronto actually are when it comes to believing this spinmaster (and hence in voting back any of the lefties). I don't buy it.

[Michael Sullivan]

A legacy is it? There will be lots of scrutinizing done re: this surplus. Perhaps Queen's Park might have to have a look see! With a provincial election coming up in 2011; it mightn't do the Liberals good to be handing over $250 million.

[Truth teller]

I am glad he is leaving. History will remember him as the worst mayor of Toronto.
This guy is leaving.......any good words from me .....hmmmmm...May be he did tiny bit environmentally friendly things.
Cheating the people who trusted you/voted for you is the worstthing. I don't know how he sleeps at night.

Suddenly $100M surplus...yah you are right.

[W Moore]

Since the city has so much money, why doesn't it get get cancel the land transfer taxes(especially), vehicle tax, garbage tax.... and then people who have more money and it would help the economy. We should not have to pay all these relative new taxes for the city just to have a huge surplus.

[Howard Tessler]

David Miller is one of the best mayors Toronto has ever seen.

Two things though.

He has broken his promise to bring in landlord licencing to protect tenants. Tenants need to contact his office and their local councillor to demand that all landlords be licenced to prevent apartments from falling into disrepair and to make it possible for the police to enter and shut down crackhouses.

The other thing is with the recession tenants are hurting rents are seeing huge increases and tenants are being evicted in massive numbers. Tenants are saying they desperately need increased services. It is estimated that at minimum another $250,000 is needed for the overloaded Tenant Hotline and another $250,000 for the Tenant Defense Fund to fight unwarranted rent increases and eviction.

Contact the mayor and city councillors today to demand landlord licencing and these small increases to tenant services that won't even be a pimple on the face of the $100 million surplus Mayor Miller has uncovered. You can get their contact information from http://app.toronto.ca/im/council/councillors.jsp

[h.lem]

I didn't expect ANYTHING LESS than this from HIS BLONDNESS. Only a 2.9% tax increase instead of 4+ % you say. The dumb wits will say Thank god he found a way to lower the increase. (He comes up smelling like roses.) The wiser, smarter people will think WHERE HAVE YOU BEEN HIDING $350M from us? 2.9% tax increase is still OVER THE INFLATION RATE and you are STILL INCREASING / ADDING FEES! Increase in budget spending too! Geez my math indicates that you were $400M in the whole and looking at 4% tax increase. I guess that's 1% for every $100M. HMMM.... you found $350M, so you are still about $50M in the whole. So that's like 1/2 % increase instead. So why the extra 2.4% eh? Time for the next mayor to get down to fixing the water mains, roads and all the other crumbling infrastructure of this city BEFORE we start handing out money to ALL those leftist/socialist "Special Interest" groups.