Toronto mayor orders spending review

Saying Toronto is in "an extremely difficult position" Mayor David Miller has directed city staff to find more ways to cut spending.

Miller blamedthe transfer of responsibilities from the province over the past 10 years commonly known as "downloading" and toldCBC Radio's Metro Morning that drastic changes are needed.

"We have just reached the end of the line of what we can do to juggle our resources to preserve city services," Miller said.

On Monday, city council voted to defer to October a decision on new taxes on land transfers and vehicle registrations. The taxes were expected to raise $365 million toward a projected shortfall of $500 million for next year.

Without those sources of revenue, large property tax increases and service cuts are predicted.

Admitting that cutting services will not be popular, Miller said council "will be forced to discuss doing things that no Torontonian wants."

Early cuts will likely include delaying hiring and laying off seasonal workers. Miller says the city has already trimmed spending to the point that any cuts would reduce services.

Miller says Toronto residents need to challenge provincial politicians to get downloading reversed. Ontario is facing a provincial election on Oct. 10.

Tuesday, Ontario Finance Minister Greg Sorbara said the province is looking at ways to remove programs from the municipal tax base, but stopped short of offering immediate help.

Miller says he expects the province, no matter which partyis in power, will take back some of the costs.

"The challenge is whether they will do enough, quickly enough," said Miller. "Based on the experience of all three parties in power, it's pretty unlikely."