Chow Seeks a Second 'New Deal' From Ford, but Queen's Park Isn't Committing

Freshly re-elected, Toronto Mayor Olivia Chow is preparing to ask Premier Doug Ford for a second "new deal" for the city. City hall wants long-term funding from Queen's Park, CBC News reported Tuesday. The province, however, has not committed to negotiating at all.

The timing is awkward. Ontario is bracing for a larger-than-expected deficit and has pushed its plan to balance the budget to the end of the decade. Toronto, for its part, faces a budget shortfall that could be around $1.1 billion.

What the first deal did

In 2023, Chow and Ford announced an agreement they called Toronto's new deal. Under it, the province offered billions of dollars in financial relief over three years. Ontario also took over the costs of maintaining the Gardiner Expressway and the Don Valley Parkway.

Three years on, parts of that funding are due to expire. City officials hope to persuade Ford to approve a long-term increase instead of another short-term top-up. UrbanToronto's Nov. 3 news roundup also flagged the expiring agreement as a key file for the new council term.

"There was a sort of stop-gap approach in the first new deal," Coun. Shelley Carroll told CBC News. She added that the highway uploads did give the city some permanent relief. "The long-term solution is what we're looking for in new deal part two."

A mandate, but not a bargaining chip

Chow enters the talks having won more than half a million votes and four more years in office. The day after the election, though, she suggested she would rely on her track record rather than the size of her win.

"Whether I have 530,000 votes or not, I represent the largest city of Canada and economic engine of Canada, and if we are successful, the province of Ontario and Canada also are stronger," Chow said, according to CBC.

Carroll said discussions at city hall about what to ask for are still ongoing.

Queen's Park is noncommittal

Ford struck a friendly tone after the municipal vote. "We look forward to working with the City of Toronto. We've given them more money than any government in the history of Ontario," he said, as quoted by CBC. "We're going to have a great partnership, like I always have, with the mayor of Toronto."

His government is offering no guarantees, however. Municipal Affairs and Housing Minister Rob Flack said Monday he was not aware of any talks with the city about a new deal. He also suggested a decision on whether to enter one had not "been fully made yet."

Flack, whose ministry handles the province's relationship with its cities, said he would wait until Chow is sworn in again in mid-November before addressing the issue. "I'm not aware of any specific negotiations today. We'll take a look at it as we go forward," he said.

Ontario's red ink

The province's finances have deteriorated since the first deal. Last week, Finance Minister Peter Bethlenfalvy tabled a mini-budget that forecast a deficit of $16.9 billion for 2026-27, up from the $13.8 billion previously projected. The same update delayed Ontario's return to balance until 2029-30. Bethlenfalvy blamed tariffs and global instability.

Carroll acknowledged that the province's money troubles "certainly colour the conversation." She argued, though, that Toronto's request would not take a bite out of this year's provincial treasury.

"If we were looking for a big one-off, a blank cheque, that would be one thing," she said. "And that would be a real concern for a province with a deficit, but what we're looking for is long-term measures that have their impact over time."

Revenue tools still off the table

The city has asked Queen's Park for new revenue tools before, including a municipal sales tax, and been turned down. It is not yet clear whether such tools will be part of Toronto's ask this time. Nor is it clear what form a long-term arrangement might take.

What comes next

The next formal milestone is Chow's swearing-in in mid-November. Flack has tied any response from the province to that date. After that, the city's next budget will show how big the hole is and how much Toronto is counting on help from the province to fill it.

The Toronto Journal will follow the negotiations as they develop.