McGuinty promises $935M to cities

TheOntario government willabsorb more than $935 million in social services costsfrom municipalities, Premier Dalton McGuintyannounced Monday.

The Liberal premierunveiled the four-year program during thefirst day of the annual conferenceof the Association of Municipalities of Ontario in Ottawa thatends Wednesday.

Many municipalities have complained about the financialburden of the social service and health responsibilities transferred to them underformer premier Mike Harris.

McGuinty said the previous Conservative government's decision to download the costs to municipalities was "one of the worst misjudgments" it made.

"They've been a burden to every municipality and we're taking them back in full," he said in a statement.

Under the plan, Queen's Park willtake on the costs called uploading of the Ontario Disability Support payments and the Ontario Drug Benefit Plan startingin Januaryif the McGuinty Liberals win re-election on Oct. 10.

New Democrat Leader Howard Hampton announced last week that, if elected, he would upload some transit costs, court costs and disability assistance, phasing it in over three years.

He said neither he nor the electorate would be pleased with the McGuinty announcement.

"For four years, Dalton McGuinty claimed Ontario couldn't help cash-strapped municipalities now he claims he has a plan. Ontario families won't be impressed by pre-election Band-Aid solutions," Hampton said.

Conservative Leader John Tory has said he will wait for recommendations from a municipal review team, reporting next year,before he talks about what specific burdens should be lifted from the municipal tax base.

Toronto will still be short $575M

Despite standing to gain more than $35 million in the first year of the four-year program, the City of Toronto will stillbe short $575 million next year.

The cash-strapped city has considered cutting services such as litter cleanup andsnow removal along with cuts to police services and the TTCto help cover the budget shortfall.

Toronto budget chief Shelley Carroll said she would like to see the money from the provincesooner.

"I'm disappointed to hear of the phase-in," she told CBC News."They can afford to do it all right now for every municipality in Ontario."

Ontario Finance Minister Greg Sorbara said Friday the province'ssurplus for the 2006-2007 fiscal yearis $2 billion more than hepredicted in his springbudget.

He said the extra money would be used towards provincial debt, notto bail out the City of Toronto.