City of Mississauga

City of Mississauga

March 29, 2007 13:45 ET

Mississauga's Property Tax Subsidy of Toronto Social Services Being Phased Out

MISSISSAUGA, ONTARIO--(CCNMatthews - March 29, 2007) - Last week's announcement by the Province of Ontario to phase out GTA (Greater Toronto Area) pooling of funds to offset social services costs in Toronto was well received by staff and Council in the City of Mississauga.

"Our Council has been battling the pooling inequity for years," said Mayor Hazel McCallion. "It does not make sense to take property tax dollars out of Mississauga and Peel to support the City of Toronto. The Province should pay Toronto's social costs, and finally, they have recognized how unfair this downloading is on our citizens. We would, however, have liked to see the end of pooling this year rather than being reduced gradually over the next 7 years."

Since 1998 under the GTA pooling of social services, Mississauga, has contributed about $40 million per year to subsidize the City of Toronto. "In 2007, it will cost each Mississauga household $150 or $38 million in total from all taxpayers to support Toronto's social services," said Brenda Breault, Commissioner of Corporate Services and Treasurer. "We need that money here to benefit our community and support local programs and infrastructure."

According to the Province's web site, "the government is announcing a plan to phase out Greater Toronto Area (GTA) pooling. For 2007, GTA pooling contributions will be rolled back to 2004 levels. Each subsequent year, costs will be reduced by one-sixth of the 2004 levels until the program is fully eliminated in 2013."

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