C.D. Howe Institute: As the sixth largest government in Canada, with a budget of over $11 billion annually, Toronto city hall should have its finances under better control
Toronto, August 19 – Toronto has a poor record of fiscal accountability that requires reforms to the city’s financial planning and reporting, according to a study released today by the C.D. Howe Institute. In “Unbalanced Books: How to Improve Toronto’s Fiscal Accountability,” authors Colin Busby, Benjamin Dachis and William B.P. Robson note that as Toronto gears up for a municipal election this fall, the city's poor record on fiscal accountability should be a central issue.
Their 10-year comparison of planned spending changes announced in budgets with actual results reported after year-end highlights two major problems. First, the key numbers in the budgets and the financial reports do not match, being products of completely different accounting methods. Second, the increases and decreases anticipated in budget documents are typically very different from what actually occurs during the year.
Three main reforms are required, say the authors. To increase transparency and accountability, Toronto should consolidate its now separate capital and operating budgets, move to a uniform accounting basis for its budgets and year-end results, and provide analyses of discrepancies between plans and results based on comparable numbers. These reforms would help city councillors and voters ensure that the budgets Council votes on every year are meaningful indicators of what the city will actually do.
As the sixth largest government in Canada, with a budget of over $11 billion annually, Toronto city hall should have its finances under better control, conclude the authors.
For the study click here:
For more information contact:
Colin Busby and Benjamin Dachis,
Policy Analysts, or
William B.P. Robson,
President and CEO,
C.D. Howe Institute,
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