Mayor Olivia Chow’s 2026 budget proposal was unanimously approved with adjustments at the city council meeting on Tuesday. The budget features a modest 2.2% property tax increase, the lowest increase seen during Chow’s tenure. Chow emphasized affordability as the main focus of the budget during a recent news conference. The total operating budget for 2026 is $18.9 billion, with property taxes covering 31%, federal and provincial funding making up 24%, and the remainder from various sources like rate programs, transit fares, and reserves.
Prior to the council meeting, Chow highlighted the budget’s goals of enhancing affordability, care, and safety in Toronto. Notable budget changes included allocations for initiatives such as rat and coyote response plans, a youth-innovation hub, and funding for free school trips at the Toronto Zoo. Additionally, funding was allocated for youth violence prevention programs awaiting federal support.
The budget also includes provisions for a 20% reduction in property taxes for small businesses and an increase in funding for the Toronto Transit Commission (TTC). A key feature of the TTC funding is a fare freeze and fare capping program set to start in September. Concerns were raised about freezing TTC fares affecting service standards, with discussions about potential fare increases not gaining council approval.
A significant portion of the budget increase goes towards the Toronto Police Service, with a $93 million boost bringing total funding to $1.43 billion. This funding supports collective agreements and the hiring plan for additional officers. The budget also addresses shortfalls through reserve fund allocations, drawing concerns from some council members about potential future tax implications.
Despite reservations about reserve fund usage, Chow defended the decision, emphasizing the need to prioritize affordability and provide relief to taxpayers. The council meeting saw debates on various budget aspects, with councillors advocating for transparency in police service finances and supporting initiatives aimed at supporting the community’s well-being.