Toronto residents are once again being called upon to voice their opinions on how the city should allocate funds, with a looming $1 billion deficit forecasted for the 2026 budget. Mayor Olivia Chow, along with city officials, will be present at the consultations to hear from residents on a range of topics, from housing to transportation. The city is facing significant financial challenges, notably a $100 million gap in housing funding attributed to funding shortfalls from federal and provincial sources.
Residents attending a recent pre-budget consultation emphasized the importance of priorities such as transit, security, and housing. The projected shortfall is expected to spark discussions on property taxes, which serve as the primary revenue source for essential city services including transit, emergency response, and community programs.
City Councillor Shelley Carroll highlighted a longstanding structural shortfall in the budget, with efforts aimed at addressing the deficit. Mayor Chow has stressed the tough decisions ahead, suggesting that Toronto may need to halt support for refugees or increase property taxes to cover costs, calling on other levels of government for aid.
Amid economic uncertainties, including concerns over job security and global tariffs, Chow urged fiscal caution to safeguard residents’ finances. The city is gearing up for a tighter 2026 budget, with a potential property tax increase on the horizon.
The budget process will kick off with a committee meeting in January 2026, followed by public consultations and the release of the proposed budget by Mayor Chow in February 2026. Residents can participate in upcoming in-person and virtual sessions, as well as an online survey to provide their input on budget priorities.