Olivia Chow's 2026 budget is being asked to boost Downtown East funding

Toronto's budget committee finished deliberations and recommended added funding for the Downtown East Action Plan and a larger small-business tax reduction; Mayor Olivia Chow signalled openness and her office confirmed an extra $540,000 for the action plan.

Mayor Olivia Chow is finalizing Toronto's 2026 budget after two weeks of committee meetings and public presentations. The proposed plan includes an $18.9 billion operating budget and a 10-year, $63 billion capital plan, with a 2.2 per cent residential property tax increase. Council's budget committee, made up of Chow appointees, wrapped up deliberations and did not recommend major changes to the draft. The committee did, however, ask the mayor to seek increased funding for safe-community work and to consider a larger tax reduction for small businesses. Key points: - The committee recommended enhancements to the Downtown East Action Plan and more opportunities for youth as part of safe-community work. - It urged increasing the municipal tax reduction for small businesses from the current 15 per cent to 20 per cent; about 28,000 small businesses currently pay the 15 per cent rate. - The draft budget totals an $18.9 billion operating plan and a 10-year, $63 billion capital program, supported by a 2.2 per cent residential property tax increase. - Chow's office confirmed an additional $540,000 in the budget for the Downtown East Action Plan; the city previously set aside about $1.5 million a year for the initiative. - There is expected to be about $2 million in unallocated funding for council priorities. Summary: The committee's recommendations focus resources on downtown supports and small-business relief while leaving the overall draft largely intact. Mayor Chow has signalled she is open to the proposals and her office confirmed the $540,000 addition for the action plan. Under Ontario's strong-mayor legislation she must formally present her version of the budget by Feb. 1, and council will consider the spending plan at a special meeting on Feb. 10.