The Villager

At the same time the war of attrition in which selected city services were cut has become so painful that both sides at council have an interest to reach a resolution.

Although normally a pain-averse bunch, members of council have decided to pass up on an early opportunity to deal with all aspects of city financing. Instead they opted for another month of punishment for themselves and their residents. Since there will be no more provincial election goodies thrown in Toronto's direction, and there is little chance of movement among members of council, the procrastination is both pointless and painful.

Back on the election trail, mid-September projections show a small Liberal majority, or possibly Liberal minority. Of the 107 seats being contested, 22 are in Toronto, where possibly four seats may change party affiliation. At present the Liberals hold 17 of Toronto' s seats at Queen's Park, while the NDP hold five.

In Toronto, the Liberals have wisely taken the position that they have much more to lose than to gain. No doubt their strategists are closely monitoring poll results showing stable support.

Within this context it's easy to understand the premier's careful response to Toronto's plea for additional financing. In late August he announced new funding for some municipal social responsibilities. Notably, he made the announcement at an organization where Toronto is not a member. The benefit to Toronto will be about $38 million next year, based on a calculation that was applied evenly provincewide.

Sensitive to the accusation that they have given Toronto powers and taxing ability unavailable to other municipalities, Liberal policy makers will not want to alienate electors outside of the city.

From this perspective it looks that council's decision to defer the implementation of new taxes (vehicle registration and land transfer taxes) may have generated a small benefit from the province. Barring a spontaneous "I love Toronto" campaign from outside of the city, it is unlikely that there will be any more cash.

At the same time the city's political administration has achieved some limited objectives. It has proven that residents care deeply about municipal services. No one challenges that a huge shortfall remains. Tentatively, it retains control of the agenda.

Yet the campaign is taking its toll. Even councillors friendly to the administration twisted the rules at two community councils to show dismay at the cuts. The public remains sceptical at the process by which services were curtailed.

Both sides have achieved limited success, and for both further gains are unlikely. There is reason to resolve the issue. Too bad that political gamesmanship trumps the public interest to hold a special meeting to resolve the issue.

If constructive forces would come into play, there is great opportunity for a compromise. Those who postponed the new taxes can point to revenues and savings that have emerged: $38 million from the province, cost reductions from the TTC and police, $39 million in a fare increase, plus millions in other non front-line savings. Not bad.

The other side can point out that these figures do not equal the originally planned revenues of $365 million from the new taxes. Short of opening up collective agreements, an increase in property taxes or more cuts - none of which would be supported now - some level of new taxes are required. So council can come together on a package: lower levels of the new taxes, possibly the removal of irritants that bedevil discussions with the public, plus applying savings, provincial revenues and TTC fare increase to the shortfall.

While anything can happen, the pieces have fallen into place so that everyone can claim success, and our city can take steps on the way to financial stability.

But like I said, anything can happen ...