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Here’s how quickly cities across Canada are burning through cash – Maclean's

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  1. Brian Kelcey is a Toronto-based urban policy consultant. He previously served as budget advisor to the Mayor of Winnipeg, and as a senior political advisor at Queen’s Park.

As chair of Winnipeg city council’s finance committee, Scott Gillingham is now one of hundreds of municipal leaders across Canada grappling with plunging revenues and rising emergency costs associated with the COVID-19 shutdown. “If you were waiting for something worse to come along, well, this is it,” he says.

While American mayors can access hundreds of billions in federal grants and central bank loans, Canadian city leaders are coping with the same challenges, but without any promise of comparable federal aid so far. No choice is easy: laying off a cashier or a city planner saves money in the future, but it also forces a drain on reserves to pay severance in the present. Cancelling public works projects may seem prudent, but local construction firms are depending on that work to stay alive through any eventual recovery.

Last week, the Federation of Canadian Municipalities called on the federal government to offer billions in emergency transit subsidies and increased gas tax transfers. Others have proposed Bank of Canada interventions, or conversion of federal infrastructure subsidies into a share of GST revenues to move cash to cities more quickly. At the provincial level, British Columbia is allowing local governments to hold on to education property tax revenues that they would normally remit to the province as a short-term cushion.

READ: A heat map of coronavirus cases in Canada

Here’s a sample from west to east of how local officials are navigating the early days of the biggest financial crisis anyone in municipal government has ever seen.

Translink (Metro Vancouver’s transit and transportation agency)

Serving: 2.6 million people across the Vancouver Metro Area

Burn rate: Translink had already lost $75 million from plunging fare and gas tax revenues by mid-April. Even after implementing a wave of announced service cuts, Translink still expects a burn rate in the tens of millions once those measures are complete.

Translink is one of Canada’s largest transit agencies, but as of this moment in the COVID-19 crisis, it’s shrinking. By the end of the month, Vancouver transit riders can expect to lose as much as 40 per cent of service capacity, including fifty-six bus routes and cuts to rapid transit service. Over 1,500 layoffs were announced on April 20.

“Transit systems don’t turn on and off like a light switch,” says New Westminster Mayor Jonathan Coté, the chair of Translink’s mayor’s council. He told Maclean’s that he and his colleagues are concerned about the future consequences of the service cuts they’re being forced to make today. “The significant cuts we are making to transit service aren’t just going to impact us during the health crisis,” he says, “but they will also hinder us during the recovery phase.”

READ: A different type of crisis demands a different type of data

Calgary Mayor Naheed Nenshi: Calgary is facing “a perfect storm” from COVID-19 (Jeff McIntosh/CP)

City of Calgary

Population: 1.5 million

Burn rate: $15 million a week

“The good news is that Calgary is exceptionally well run,” says Mayor Naheed Nenshi in a plug for Calgary’s success in building up emergency reserves. But the third-term mayor wasn’t pulling any punches about the scale of the bad news: Calgary is facing a “perfect storm” with the pandemic, the economic shutdown and the ongoing oil price shock all damaging local revenues and expenditures. Calgary City Hall has already laid off 10 per cent of its workforce and suspended seasonal hiring.

Since Alberta’s economy was already facing tough times before the pandemic, Nenshi is more focused than other mayors on the potential risks for business property tax revenues. “If that business goes bankrupt, who’s paying that tax?” he asks, floating the real possibility of a chain reaction if several business failures outpaced various landlords’ resources. “Our estimated loss [of between $400-$450 million] through to September assumes everyone can pay their taxes,” he says, an assumption he himself acknowledges may be tested given the City’s desire to be flexible with tax collections. “We know from research and experience that when a disaster shuts down businesses, 30 to 40 per cent of them never reopen,” he said. “After the 2013 flood, we got that down to five per cent,” but with the combination of economic pressures, Nenshi believes it will be tough to get similar results this time.

City of Selkirk, Man.

Population: 10,000

Burn Rate: illnesses and self-isolation have prevented the City’s tiny finance team from calculating a projection yet, “but day-by-day this pushes our consolidated operations towards the red,” says City CAO Duane Nicol.

“It’s a tighter community,” he says. ”We know the names of the people losing their jobs or who own businesses struggling to make rent or payroll… For our staff and Council, the economic impacts are not just numbers on a briefing report, it’s the quivering voice we hear on the phone as people ask about their water bills. It’s personal for us.”

Nicol has a list of mounting worries to consider, including lost user fee revenue for arenas and halls, a 50 per cent drop in transit use and an “almost complete collapse” of accessible transit use. Despite residents rallying around local businesses, the city is uncertain who will be ready to pay when business property tax deferrals run out. While Nicol believes the city’s reserve policies are generally conservative, he notes that Selkirk was already paying for three major capital projects this year. “For the first time in decades, the city has had to establish a line of credit to ensure we have the liquidity to fund operations,” he says.

READ: Notes from an Apocalypse: What we might learn from the COVID-19 pandemic

City of Mississauga, Ont.

Population: 750,000

Burn rate: $20 million per month to date, with projections of $90 million in cumulative six-month losses once ongoing savings measures fully kick in.

Mississauga has a reputation for modern city services, but efficient management hasn’t been enough to protect Ontario’s third largest city from an economic shutdown that leaves Canada’s second-largest employment centre — the area surrounding Lester B. Pearson Airport — operating at a tiny fraction of its capacity.

With a wide range of community services available before the pandemic, the city is now losing $5 million a month from lost recreation fees alone, over and above $7 million per month in transit fare losses. Mayor Bonnie Crombie adds to that list with “lost investment income, fine collection and interest on deferred tax… we have no way of recovering those lost revenues, which is why we need the provincial and federal governments to step in and assist cities during this unprecedented crisis,” she says. Crombie pointedly notes that “we are the only level of government that has laid people off.” Mississauga has let go of 2,000 staff so far.

City of Montreal (Pixabay.com / Snowmen)

City de Montreal

Population: 4.2 million

Burn Rate: None confirmed

On April 23, Mayor Valérie Plante tweeted a French colloquialism — “les reins assez solides,” or Montreal “has strong kidneys” — by way of affirming her belief that the City is in relatively good shape to ride out the crisis. Recent budget surpluses have left Montreal’s reserves in excellent shape. However, Plante has insisted that in the medium term, Montreal will need federal and provincial aid just as surely as other cities, and to prove it, she also announced targets for cuts to Montreal’s central budget of almost $86 million. She also bluntly challenged Montreal’s nineteen borough governments to begin spending cuts to bring the total savings up to $124 million.

Iqaluit, Nunavut

Population: 7,700

Burn Rate: Increased expenses of $90,000 — entirely offset by a grant from the Government of Nunavut for now — and $500,000 in lost revenue since March 15.

In Canada’s northernmost and most isolated city, public sector jobs and regional Inuit associations have kept employment relatively stable. The community has yet to identify a single COVID-19 case. But Mayor Kenny Bell argues that Iqaluit relies “heavily on tourism, construction and transportation industries for services and essential supplies.  If these industries experience significant downturns, there will be a detrimental effect to our local economy and the well-being our community, region and territory.”

Lost commercial landfill tipping fees, ice tournament rental fees and Aquatic Centre fees are all high on City’s list of red flags for revenue. While City CAO Amy Elgersma has managed to avoid layoffs so far through aggressive redeployment of staff into community support roles, her team is also reviewing the City’s capital program for potential cuts if they prove necessary.

READ: Coronavirus in Canada: how to get tested, what the symptoms are, where to get help

Halifax Regional Municipality

Population: 440,000

Burn Rate: Halifax projects that in the absence of new revenue, it will run out of cash in approximately four months.

In a presentation to city council last week, city chief financial office Jane Fraser confirmed that tax deferrals were effectively pushing out almost $200 million in revenue that the City would normally be relying on to manage its cash pressures. Halifax is also one of the few Canadian cities to publicly confirm its losses from parking fees, at almost half a million dollars a month. Even as councillors reviewed the damage, they also voted to make the pressure more difficult, agreeing to plan for millions more in projected revenue losses to cut down late fees and further extend deadlines for beleaguered property taxpayers. Among Halifax’s other emergency steps already taken: a request for a provincial line of credit to maintain services.

Correction: An earlier version of this story incorrectly identified the mayor of Iqaluit as Kelly Bell instead of Kenny Bell  

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Virginia Democrats advance efforts to protect abortion, voting rights, marriage equality

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RICHMOND, Va. (AP) — Democrats who control both chambers of the Virginia legislature are hoping to make good on promises made on the campaign trail, including becoming the first Southern state to expand constitutional protections for abortion access.

The House Privileges and Elections Committee advanced three proposed constitutional amendments Wednesday, including a measure to protect reproductive rights. Its members also discussed measures to repeal a now-defunct state constitutional ban on same-sex marriage and ways to revise Virginia’s process to restore voting rights for people who served time for felony crimes.

“This meeting was an important next step considering the moment in history we find ourselves in,” Democratic Del. Cia Price, the committee chair, said during a news conference. “We have urgent threats to our freedoms that could impact constituents in all of the districts we serve.”

The at-times raucous meeting will pave the way for the House and Senate to take up the resolutions early next year after lawmakers tabled the measures last January. Democrats previously said the move was standard practice, given that amendments are typically introduced in odd-numbered years. But Republican Minority Leader Todd Gilbert said Wednesday the committee should not have delved into the amendments before next year’s legislative session. He said the resolutions, particularly the abortion amendment, need further vetting.

“No one who is still serving remembers it being done in this way ever,” Gilbert said after the meeting. “Certainly not for something this important. This is as big and weighty an issue as it gets.”

The Democrats’ legislative lineup comes after Republican Governor Glenn Youngkin, to the dismay of voting-rights advocates, rolled back a process to restore people’s civil rights after they completed sentences for felonies. Virginia is the only state that permanently bans anyone convicted of a felony from voting unless a governor restores their rights.

“This amendment creates a process that is bounded by transparent rules and criteria that will apply to everybody — it’s not left to the discretion of a single individual,” Del. Elizabeth Bennett-Parker, the patron of the voting rights resolution, which passed along party lines, said at the news conference.

Though Democrats have sparred with the governor over their legislative agenda, constitutional amendments put forth by lawmakers do not require his signature, allowing the Democrat-led House and Senate to bypass Youngkin’s blessing.

Instead, the General Assembly must pass proposed amendments twice in at least two years, with a legislative election sandwiched between each statehouse session. After that, the public can vote by referendum on the issues. The cumbersome process will likely hinge upon the success of all three amendments on Democrats’ ability to preserve their edge in the House and Senate, where they hold razor-thin majorities.

It’s not the first time lawmakers have attempted to champion the three amendments. Republicans in a House subcommittee killed a constitutional amendment to restore voting rights in 2022, a year after the measure passed in a Democrat-led House. The same subcommittee also struck down legislation supporting a constitutional amendment to repeal an amendment from 2006 banning marriage equality.

On Wednesday, a bipartisan group of lawmakers voted 16-5 in favor of legislation protecting same-sex marriage, with four Republicans supporting the resolution.

“To say the least, voters enacted this (amendment) in 2006, and we have had 100,000 voters a year become of voting age since then,” said Del. Mark Sickles, who sponsored the amendment as one of the first openly gay men serving in the General Assembly. “Many people have changed their opinions of this as the years have passed.”

A constitutional amendment protecting abortion previously passed the Senate in 2023 but died in a Republican-led House. On Wednesday, the amendment passed on party lines.

If successful, the resolution proposed by House Majority Leader Charniele Herring would be part of a growing trend of reproductive rights-related ballot questions given to voters. Since 2022, 18 questions have gone before voters across the U.S., and they have sided with abortion rights advocates 14 times.

The voters have approved constitutional amendments ensuring the right to abortion until fetal viability in nine states: Arizona, California, Colorado, Maryland, Michigan, Missouri, Montana, Ohio and Vermont. Voters also passed a right-to-abortion measure in Nevada in 2024, but it must be passed again in 2026 to be added to the state constitution.

As lawmakers debated the measure, roughly 18 members spoke. Mercedes Perkins, at 38 weeks pregnant, described the importance of women making decisions about their own bodies. Rhea Simon, another Virginia resident, anecdotally described how reproductive health care shaped her life.

Then all at once, more than 50 people lined up to speak against the abortion amendment.

“Let’s do the compassionate thing and care for mothers and all unborn children,” resident Sheila Furey said.

The audience gave a collective “Amen,” followed by a round of applause.

___

Associated Press writer Geoff Mulvihill in Cherry Hill, New Jersey, contributed to this report.

___

Olivia Diaz is a corps member for The Associated Press/Report for America Statehouse News Initiative.

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Vancouver Canucks winger Joshua set for season debut after cancer treatment

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Vancouver Canucks winger Dakota Joshua is set to make his season debut Thursday after missing time for cancer treatment.

Head coach Rick Tocchet says Joshua will slot into the lineup Thursday when Vancouver (8-3-3) hosts the New York Islanders.

The 28-year-old from Dearborn, Mich., was diagnosed with testicular cancer this summer and underwent surgery in early September.

He spoke earlier this month about his recovery, saying it had been “very hard to go through” and that he was thankful for support from his friends, family, teammates and fans.

“That was a scary time but I am very thankful and just happy to be in this position still and be able to go out there and play,,” Joshua said following Thursday’s morning skate.

The cancer diagnosis followed a career season where Joshua contributed 18 goals and 14 assists across 63 regular-season games, then added four goals and four assists in the playoffs.

Now, he’s ready to focus on contributing again.

“I expect to be good, I don’t expect a grace period. I’ve been putting the work in so I expect to come out there and make an impact as soon as possible,” he said.

“I don’t know if it’s going to be perfect right from the get-go, but it’s about putting your best foot forward and working your way to a point of perfection.”

The six-foot-three, 206-pound Joshua signed a four-year, US$13-million contract extension at the end of June.

This report by The Canadian Press was first published Nov. 14, 2024.

The Canadian Press. All rights reserved.

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Trump chooses anti-vaccine activist Robert F. Kennedy Jr. as health secretary

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NEW YORK (AP) — President-elect Donald Trump says he will nominate anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services, putting him in charge of a massive agency that oversees everything from drug, vaccine and food safety to medical research and the social safety net programs Medicare and Medicaid.

“For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health,” Trump said in a post on his Truth Social site announcing the appointment. Kennedy, he said, would “Make America Great and Healthy Again!”

Kennedy, a former Democrat who ran as an independent in this year’s presidential race, abandoned his bid after striking a deal to give Trump his endorsement with a promise to have a role in health policy in the administration.

He and Trump have since become good friends, with Kennedy frequently receiving loud applause at Trump’s rallies.

The expected appointment was first reported by Politico Thursday.

A longtime vaccine skeptic, Kennedy is an attorney who has built a loyal following over several decades of people who admire his lawsuits against major pesticide and pharmaceutical companies. He has pushed for tighter regulations around the ingredients in foods.

With the Trump campaign, he worked to shore up support among young mothers in particular, with his message of making food healthier in the U.S., promising to model regulations imposed in Europe. In a nod to Trump’s original campaign slogan, he named the effort “Make America Healthy Again.”

It remains unclear how that will square with Trump’s history of deregulation of big industries, including food. Trump pushed for fewer inspections of the meat industry, for example.

Kennedy’s stance on vaccines has also made him a controversial figure among Democrats and some Republicans, raising question about his ability to get confirmed, even in a GOP-controlled Senate. Kennedy has espoused misinformation around the safety of vaccines, including pushing a totally discredited theory that childhood vaccines cause autism.

He also has said he would recommend removing fluoride from drinking water. The addition of the material has been cited as leading to improved dental health.

HHS has more than 80,000 employees across the country. It houses the Food and Drug Administration, the Centers for Disease Control and Prevention, the Medicare and Medicaid programs and the National Institutes of Health.

Kennedy’s anti-vaccine nonprofit group, Children’s Health Defense, currently has a lawsuit pending against a number of news organizations, among them The Associated Press, accusing them of violating antitrust laws by taking action to identify misinformation, including about COVID-19 and COVID-19 vaccines. Kennedy took leave from the group when he announced his run for president but is listed as one of its attorneys in the lawsuit.

__ Seitz reported from Washington.

The Canadian Press. All rights reserved.

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