Rob Ford’s Plan to Reduce the Size & Cost of Government
The size and scope of government in Toronto has grown bloated and wasteful. Every year,
the City spends more than it takes in. This year, the City plans to spend about $439 Million
more than it has. i Politicians have preferred to raise taxes rather than manage effectively.
It’s time for that to stop.
It’s time to stop the gravy train that feeds an industry of lobbyists, consultants and Bay
Street lawyers from bloated departmental budgets. It’s time to re-focus city government on
doing its job efficiently and effectively, while respecting the taxpayers of Toronto.
1. Reduce the Size of Council. Toronto has 22 federal MPs, 22 provincial MPPs and 22
Public School Trustees. It should have 22 City Councillors. By way of comparison, Los
Angeles has 15 districts, each represented by one elected member of council, serving a
population of about 4 million. ii Greater London (UK) with a population of over 7.5 million
has 14 constituencies and elects a total of 25 members of its assembly. iii
The City will use its powers under the City of Toronto Act to reduce Toronto City Council from
44 to 22 members, plus the mayor beginning in 2014. This will make meetings more
productive and improve coordination between federal, provincial, municipal and school
board representatives, who would each share a common constituency. The plan will also save
taxpayers about $9 million in direct costs (salary and related costs for councillors and their
staffs) and at least $6 million in indirect costs (from the reduced burden on City Hall staff to
respond to councillors’ needs, print reports, provide and maintain office space, etc.) each year.
Cost Impact: Save $15 million or more yearly from 2014 onwards.
2. Reduce the Size of Government. The City of Toronto and its various Agencies, Boards,
Commissions and Corporations employ about 50,000 people and keep growing, despite
so-called “hiring freezes.” iv The City will reduce its total number of employees through
managed attrition. Current attrition rates average six per cent each year. v The City will
target an annual staff reduction equal to half of the attrition rate. This will reduce the size
of government by about three per cent each year for the next four years.
This approach will allow the City to continue targeted hiring to fill key jobs, while
reducing the overall number of city employees. This will save about $1.1 Billion over
four years (2011: $68 Million | 2012: $201 Million | 2013: $330 Million | 2014: $455
Million | all compared against the baseline year 2010 operating budget of $9.2 Billion.)
Cost Impact: Save $1.1 Billion over four years.
3. Reduce the Cost of Government. In 2000, Toronto’s combined operating and capital
budget was $6.9 Billion. vi In 2010, it will be $11.6 Billion. vii Much of this growth is
simply wasteful spending that comes from poor purchasing practices and ineffective
management. The City will target a very modest and achievable reduction in its
operating budget of 2.5 per cent in the first year, followed by 2.0 per cent in year two,
1.5 per cent in year three, and zero reduction in year four. This will save about $1.7
Billion over four years. (2011: $230 Million | 2012: $409 Million | 2013: $541Million |
2014: $541 Million | all compared against the baseline year 2010 operating budget of
$9.2 Billion.)
Cost Impact: Save $1.7 Billion over four years.
4. Saving Our City. The City will create a “Saving Our City” program to identify
opportunities to save money and improve the value taxpayers receive for their money
by “catching the little things.” Based on Auditor General’s reports, the Toronto Board of
Trade estimates this type of program could save up to $17 million per year. viii City
employees who identify savings opportunities that are implemented will receive public
recognition and, where practical, will also receive a financial reward linked to the
amount saved by their idea.
Cost Impact: Save up to $61 million (net of rewards) over four years.
Net Cost Impact
Item Cost Decrease
1. Reduce the Size of Council *
2. Reduce the Size of Government ($ 1.1 Billion) over 4 years to 2014
3. Reduce the Cost of Government ($ 1.7 Billion) over 4 years to 2014
4. Saving Our City ($ 61 Million) over 4 years to 2014
Total: ($2.8 Billion) over 4 years to 2014
Net Cost Impact: Savings of $2.8 Billion over 4 years
* Savings from Reducing the Size of Council are not included because those savings will not be
realized until after 2014.
Endnotes
i
City of Toronto 2010 Executive Committee Recommended Operating Budget, Apr. 2010
http://www.toronto.ca/budget2010/pdf/op2010_presentation_council_april15.pdf
ii
City of Los Angeles website http://www.lacity.org/YourGovernment/CityCouncil/index.htm and
http://cityplanning.lacity.org/dru/Locl/LocPfl.cfm?&geo=Cw&loc=LA_&yrx=Y08
iii
Greater London Authority website http://www.london.gov.uk/who-runs-london/the-london-assembly/about-
london-assembly and http://www.london.gov.uk/sites/default/files/dmag/Update%2016-
2010%202009%20Round%20Demographic%20Projections%20for%20the%20London%20Plan%20(rev).pdf
iv
Mayor's Blue Ribbon Panel Report A Blueprint for Fiscal Stability and Economic Prosperity - A Call to Action, Feb.
2008.
v
Ibid.
vi
City of Toronto 2000 Operating & Capital Budget Summaries http://www.toronto.ca/budget2000/2000budget.pdf
vii
City of Toronto News Releases: Apr. 15, 2010
http://www.toronto.ca/budget2010/pdf/op2010_newsrelease_council_april15.pdf and Dec. 8, 2009
http://www.toronto.ca/budget2010/pdf/newsrelease_2010_capital_council_final.pdf
viii
Toronto Board of Trade Pushing the Boundaries: Advancing Civic Leadership for Regional Prosperity, Sep 2010
http://www.bot.com/AM/Template.cfm?Section=Vote_Toronto_2010&Template=/CM/ContentDisplay.cfm&ContentI
D=5478
