Halifax Regional Council Looks To Slash $85-Million From Budget
HALIFAX – City staff have asked Halifax Regional Council to cut $85 million worth of programs and services from its 2020/2021 budget.
According to CAO Jacques Dubé, the cuts are necessary to keep the city afloat as the economic pain of Covid-19 wreaks havoc on the municipality’s finances.
Council had been on the cusp of passing a 2020/2021 budget before the Covid-19 pandemic. However, major revisions will now be required as council looks to counteract huge revenue losses.
In a special budget meeting earlier this week, Dubé said that the city will lose millions of dollars this year as transit fares disappear, recreation fees dry up, and money from fines and deed transfer taxes stops coming in.
Because municipal governments must follow strict rules around borrowing money and not running deficits, all that lost revenue must be offset with budget cuts.
Last month, the city laid off almost 1,500 staff members in an attempt to free up more money in the municipal budget.
What’s On The Table
City staff outlined a host of potential cuts in a May 12 report to council.
The report suggests making up most of the $85 million by delaying several major capital projects. All told, the report suggests axing the city’s capital budget by $53 million.
Almost $26 million of that would be saved by delaying the long-anticipated Cogswell Interchange redevelopment. The report suggests slashing the project’s $27 million budget down to just 750,000 this year.
An additional $2 million would also be saved by delaying infrastructure developments in downtown Dartmouth.
Along with capital projects, city staff recommended lowering the Halifax Public Libraries’ operating budget by more than $1 million.
It also axes more than $5.6 million from the Halifax Regional Fire and Emergency budget, including reducing honorariums for volunteer firefighters, cutting back on overtime, and closing a Station 11 in Herring Cove.
Halifax Regional Police would also see its budget cut by more than $5.5 million.
More Debate, Questions To Come
None of the changes outlined in the staff report are final, and the council will decide what the final budget looks like.
Councilors began deliberations today, and likely won’t make their final decisions until later this month.
Many took issue with the idea of budget cuts to fire services, especially at the expense of volunteers, or if it means closing a station.
“The money that [our emergency services] are looking for is to protect and keep in place our vital services. There is absolutely no way that I am going to support anything that inhibits that in rural communities,” said. Coun. Steve Streatch.
Coun. Richard Zurawski echoed Streatch’s concerns.
“A dollar that goes to the fire department, in my assessment, has a different weight than a dollar that goes into parks and rec, or a dollar that might go into snow removal, or other particular departments that we have, because [fire departments are] critical,” he said.
“Fire and police are social infrastructure and the health of our city depends on it… When they fall apart we lose everything.”
Zurawski suggested money could be saved in other places, such as by cutting the salaries of every HRM staff member by 10 percent.
Councilllors also had several questions about the logistics and practicality of drawing money from the municipality’s reserve many funds.
Dubé said staff has looked closely at that option, and that he will bring a report to the council asking for permission to use the funds more liberally.
Council anticipates making a final vote on the revised budget in late May.