The toughest budget the amalgamated city of Toronto has ever seen is now in the hands of a potentially lame-duck mayor who will never face the voters again.
For some city councillors, this is cause for alarm with potential double-digit property tax hikes -- or even new taxes -- on the horizon as Toronto council tries to balance its 2010 budget.
Others, though, even some of Miller's critics, think a tough budget year and a lame-duck mayor could mean good things for the city's coffers.
"He's certainly a lame duck, but he has an opportunity to surprise people in the next year and a half to actually try to find some level of fiscal responsibility in the budget review process," said Councillor Denzil Minnan-Wong, who noted Miller has never scrimped and saved before.
This year, for example, the $8.7-billion operating budget -- which has grown from $6.7 billion when Miller took office -- relied on more than $100 million from operating reserves -- funds set aside for rainy days -- and more than $300 million in one-time funding from the province.
But now the reserve funds are empty and the province is projecting a $6.4-billion deficit, making a cash infusion from Queen's Park unlikely.
"That might have been another reason why he's packing it in," said Councillor Mike Del Grande. "We don't have a revenue problem. We've got a spending problem."
Councillor Paul Ainslie, a member of the budget committee, said next year's budget could be the toughest in 10 years, but it's not directly because of the recession.
"For the past 10 years, we've raided the reserves, we beg an borrow money from the provincial government, and ... they've always come and saved us in one form or another," he said. "But I don't think we can expect manna from heaven from Queen's Park anymore."
Councillor Peter Milczyn called this year's budget a "disaster," and "an uncontrolled orgy of spending." But, he said, the 2010 budget could be better, if only because Miller's supporters might be less likely to follow the mayor's directions.
"Going into next year, an election year, if common sense doesn't prevail upon some people, then maybe fear of the electorate will," he said.
According to council speaker Councillor Sandra Bussin, the budget will be Miller's "biggest test," with his opponents trying to kill some of his less popular initiatives.
"Both the Land Transfer Tax and the Vehicle Registration Tax aren't required, they're permissive, so there could be motions to rescind those initiatives," she said, which would only cause property tax rates to skyrocket.
Councillor Michael Thompson, who has said he's interested in Miller's job, said the budget is one reason why Miller should have resigned Friday instead of pledging to stay on until a new mayor is elected next fall.
BRYN.WEESE@SUNMEDIA.CA
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