The Council approved a 2022 operating budget in February with a $1.4 billion deficit on the assumption that it would receive additional funding from other levels of government.
In a letter sent to both Ontario Premier Doug Ford and Finance Minister Chrystia Freeland on Wednesday, Tory says the deficit is now about $815 million.  He emphasized that the shortfall is “directly and solely as a result of the effects of COVID-19.”
This includes lost TTC revenue, an increase in the number of shelters in the city, and lost revenue due to travel restrictions and a reduction in personal work.
Tory warned that if Ford and Freeland did not step up, “deep cuts to services” could be required.
“I am writing today to reiterate our request for continued assistance from the Government of Canada and the Province of Ontario to address the ongoing impact of COVID-19 on our city’s finances so that we do not have to make major cuts to services our residents demand, impose massive tax increases they cannot afford, or implement cuts in our capital budget that will eliminate thousands of jobs and threaten our economic recovery,” the letter said.
“All the amounts requested are a direct result of the pandemic and the necessary measures taken to deal with the consequences of the pandemic.”
The city has already received about $483 million in federal and provincial funding this year to address transit-related shortfalls, but Tory emphasized that Toronto’s shortfall is “well above that amount.”
Despite this, the Tories have maintained their pledge to keep property taxes below inflation, with an increase of 2.9 per cent in 2022.
During the municipal election, the mayor said the budget would be balanced thanks to “prudent financial management,” revenue from the TTC and cooperation with other governments.  However, in the letter, it appears that the mayor believed in a significant contribution from these partnerships to cover the deficit.
“Given our limited options for raising revenue and our inability to run budget deficits, we do not have the fiscal capacity to absorb these huge shocks to our system and therefore need to turn to governments with greater fiscal capacity and flexibility,” he said.  he wrote, while also promising to continue to “find efficiencies and trade-offs” to address budget challenges going forward.
The Tories are asking Ford and Freeland to provide a “direct funding commitment” for both 2022 and 2023 by the end of the month.
CTV News Toronto has reached out to the offices of Ford and Freeland for comment.