08 November 1, 2008 - ObserverXtra
08 November 1, 2008 - ObserverXtra
08 November 1, 2008 - ObserverXtra
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12 | OPINION<br />
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»CARTOON<br />
»EDITORIAL<br />
»VERBATIM »THE MONITOR<br />
The Observer | Saturday, <strong>November</strong> 01, 20<strong>08</strong><br />
Now’s the time for cutting back<br />
Regional Coun. Tom Galloway is in the<br />
right track when he talks about cutting<br />
expenditures in the 2009 budget, now under<br />
discussion.<br />
Galloway chairs council’s finance committee;<br />
he’s well placed to take the lead<br />
on austerity measures. Currently talking<br />
about a 3.84-per-cent jump in the base<br />
budget, he and his fellow councillors<br />
should be looking to get that closer to<br />
zero. That would show the region is serious<br />
about the economic downturn that is<br />
hitting ratepayers, who are in no position<br />
to watch governments of any level add<br />
to their expenses simply because we’re<br />
forced to pay taxes.<br />
Yes, the region is facing increased costs,<br />
especially on the energy front, but that’s<br />
true of everybody. Belts will be worn<br />
tighter this year, and governments should<br />
lead by example. That will mean cutting<br />
some programs, delaying some purchases<br />
and pushing back capital projects wherever<br />
possible.<br />
The same measures must be undertaken<br />
in Woolwich and Wellesley as the townships<br />
begin the process of planning their<br />
own 2009 budgets.<br />
“I think it’s going to be a busy, busy winter. The shelter numbers are very<br />
high for this time of year.”<br />
Anne Tinker of The Bridges homeless shelter on the economic downturn<br />
The municipal situation is even worse<br />
this year thanks to the skewed system of<br />
property assessment we’re saddled with.<br />
With both the federal and provincial governments<br />
facing deficits, neither is likely<br />
to have any new cash to help municipalities.<br />
Increases of any kind are generally unwanted.<br />
Increases above inflation demand<br />
some explanation, especially given that<br />
many ratepayers aren’t seeing commensurate<br />
pay increases – at the end of the<br />
day, factoring in all the government taxes,<br />
fees and charges, most of us are going to<br />
have less in our wallets.<br />
In some ways, however, we’re our own<br />
worst enemies. We’re placing an ever-increasing<br />
demand for services on our governments,<br />
particularly frontline governments<br />
at the township and regional levels.<br />
We can’t have it both ways: more services,<br />
lower taxes. It’s one or the other.<br />
Some will argue that they don’t want<br />
more services and that they are, in fact,<br />
getting precious little bang for their buck<br />
as it now stands. For these people, tax increases<br />
of any kind are particularly galling.<br />
If population growth is driving new<br />
expenditures – for roads and sewers, for<br />
instance – then let the new arrivals foot<br />
the bill, some will argue.<br />
That reasoning leads us to the slippery<br />
slope of user fees, the favourite route of<br />
governments too cowardly to raise taxes<br />
or cut services. This is precisely the option<br />
being explored at the provincial<br />
level as the McGuinty government looks<br />
to tackle the deficit without breaking its<br />
promise to freeze taxes.<br />
However, those revenues come from one<br />
source: us. Whether income tax goes up<br />
by $10 or you pay an extra $10 when you<br />
renew your driver’s licence, you’re still<br />
out $10. Of course, if you don’t drive –<br />
that is, you’re not a “user” – then you’re<br />
ahead of the game … until you’re faced<br />
with a fee for something else. And you<br />
will be.<br />
In the face of growing expectations – we<br />
always want more – at some point our<br />
elected officials have to draw a line, to<br />
decide what’s essential and what’s not.<br />
There will never be enough money to meet<br />
every demand; it’s better to start applying<br />
the brakes slowly rather than jam them<br />
on when the inevitable wall appears.<br />
A national poll this week revealed 90% of Canadians say they would be<br />
proud if their province took the lead in reducing poverty; 88% want Canada<br />
to be a leader in poverty reduction; and 77% say a recession is all the more<br />
reason to act now.<br />
Canadian Centre for Policy Alternatives