Hiring freeze, outsourcing will save city $2.2B: board
The Toronto Board of Trade says the city can fix its finances with a host of new measures, including hiring freezes, outsourcing and asset sales, to save $2.2-billion over five years.
Board president and CEO Carol Wilding says the city’s “structural deficit” has been exacerbated by city overspending. It can be fixed without significant cuts to services or big property tax increases –but it will take political will, she said.
The board proposes instituting a hiring freeze, and then “leveraging” the vacancies caused by attrition until it’s time to negotiate a new contract. That could save $265-million, the report states. On garbage, Toronto spends twice per tonne than the average spent by municipalities that contract out services, according to the BOT. By bringing it down to 125%, the city could save almost $104-million in 2014 and 2015.
“I think we’re setting the stage to have the adult conversation,” Ms. Wilding said. “This isn’t about being antiunion, it’s about the reality that we’re coming out of the biggest recession since the great depression and everybody has got to do their part…. They’re targets, not prescriptions, but they do require some fundamental change.”
The report also urges the city to “extract value” from assets like Enwave, Toronto Parking Authority, Toronto Hydro and Metro Hall, to help pay down the debt.
Budget Chief Shelley Carroll said $2.2-billion appears to be an “inflated” figure, and said that the city has already taken some of the steps outlined in the report. She said “sweeping assumptions” that the city can opt not to fill job vacancies are not going to happen.
“To be fair, we deliver hard services, and if the person who operates the child care centre is retiring we’re assuming you want us to replace her,” Ms. Carroll said, who also disputed the garbage collection figure.
