Draft of city budget features many cuts

City staff tabled a draft budget Tuesday which one councilor said would be "suicide" for elected officials if adopted.

Main issues of contention in the budget included suggested cuts to 700 subsidized child care positions, cuts to recreational facilities and services such as outdoor hockey rinks, and the downsizing of transit services despite an increasing number of users and expanding road networks.

Though many of the cuts are to popular services, including some which affect lower-income families, councilors will have to find $35 million to make up for the current budget deficit and to keep the 2009 property tax increase at 4.9 per cent.

Staff illustrated five strategies they concentrated on to increase city revenue. The first point in their plan is to increase user fees and reduce the level of city subsidization to services. This would bring in an estimated $7.43 million in additional revenue.

Staff also asked council to defer costs incurred by new programs, which would bring in another $7.86 million. Many of the affected programs would be arts programs.

In the third measure of the budget plan, the city would adjust program funding according to current support it is receiving from the province. The city has many cost-sharing programs with the province. Ontario pays for a fixed rate of these programs, regardless of actual cost. Staff suggested the city rollback the extra funding they currently commit to match original cost-sharing ratio goals.

In a hotly debated fourth measure, the city would speed up the current transit cost recovery plan to transfer more of the cost-burden to the user. Transit fares are set to increase another 7.5 per cent.

Finally, staff suggested that the city look to cut another $9 million to existing services.

The draft budget will be open for public debate in Ottawa wards for the rest of November.

 To view the draft budget visit  www.ottawa.ca/calendar/ottawa/citycouncil/occ/2008/11-04/ACS2008-CMR-FIN-0046%20-%202009%20Draft%20Operating%20and%20Capital%20Budgets,%20High-Level%202010%20and%202011%20Budget%20Forecasts%20-%20FINAL.htm