Budget Prioritizes Affordability with Lower Tax Hike
Toronto Mayor Olivia Chow emphasized affordability measures in her proposed 2026 municipal budget Monday, presenting the smallest property tax increase since taking office while deflecting questions about her potential re-election campaign.
“What I’m focusing on is delivering an affordable, caring, safer city,” Chow stated during remarks at an Etobicoke food distribution facility. “It’s tough, but this approach is important for residents.”
Key Financial Provisions
The revised budget proposes a 2.2% property tax increase – significantly lower than the 9.5% and 6.9% increases implemented during Chow’s first two years. Notable provisions include:
• $500,000 allocated for homeless outreach programs including housing support and mental health services
• Increased tax discount for small businesses from 15% to 20%
• Confirmed TTC fare freeze with upcoming monthly price cap at 47 trips
• Funding for youth safety initiatives
Financial Challenges Ahead
Despite the reduced tax hike, analysts note the budget relies on deferring community center renovations and utilizing reserve funds. City officials confirm Toronto faces similar financial pressures next year, projecting a $1.1 billion shortfall without reserve funds available for balance.
Ontario Premier Doug Ford recently confirmed the province won’t provide new revenue tools to municipalities through the updated provincial-municipal funding agreement.
Uncertain Political Future
When questioned about the October municipal election, Chow laughed and responded: “I don’t know. I don’t know.” The mayor maintained her focus remains on current governance priorities rather than campaign plans.
City Council will vote on the proposed budget February 10. The municipal election is scheduled for October 26, with candidate nominations closing August 21.
