Advocacy in Action

Brett McDermott, Director of Government and Stakeholder Relations

Mississauga Board of Trade

Local & Regional

2024: ONE OF THE MOST IMPORTANT YEAR IN MISSISSAUGA’S 50-YEAR HISTORY

The past twelve months saw spirited and sometimes rancorous debate regarding the future of local government in Peel. With the provincial government supporting – and subsequently withdrawing – its support for Mississauga becoming an independent city, the debate regarding local government will continue. How will local government leaders address all the issues raised by Mississauga in recent years?

One of the issues is funding; specifically, funding the Region of Peel as a whole as well as how to fund specific services within the Region. Mississauga as an independent city is off the table, but resolving outstanding issues will continue to be debated. In this context, will commercial taxes increase in Mississauga and Peel? Will policymakers rise to the occasion of addressing possibly the defining issue of the moment: supply of housing?

Additionally, Mississauga will be electing a new mayor in 2024. In the City’s 50-year history, it has only had four mayors – and, only once since the 1970s has a new mayor been elected (Bonnie Crombie in 2014). When election day comes, the residents of Mississauga will make a choice that will shape the city’s direction for many years to come.

These circumstances, politically, could make for one of the most important years since the City of Mississauga’s creation in 1973. This is a time for Mississaugans to elevate their level of political engagement and have a voice in shaping the future of our city.

Provincial

FALL ECONOMIC STATEMENT (FES)

For the first time in the Ontario Government’s history, revenue and expenses are projected to exceed $200 billion. The deficit is forecasted to be $5.6 billion in 2023-24 and $5.3 billion in 202425. In 2025-26, the government is forecasting a $500 million surplus. Interest on the debt is anticipated to grow from $13.4 billion in 2023-24 to $15.2 billion in 2025-26.

The largest item in the budget is health care spending, which will reach $81.2 billion, which amounts to 39% of the overall budget and 42% of program spending.

With regard to local initiatives in Mississauga, the Ontario government will continue funding to support the Trillium Health Partners Broader Redevelopment Project to build a new, state of-the-art hospital, the Peter Gilgan Mississauga Hospital and the expansion of the Queensway site.

Additionally, Wellbrook Place (Trillium Health Partners) in Mississauga is expected to open to residents in fall 2023, adding a total of 632 beds to the long-term care sector.

Federal

FALL ECONOMIC STATEMENT (FES)

The federal FES focused less on fiscal restraint and more on spending to address challenges in a variety of areas. The government committed to a budget deficit of no greater than 1% of GDP by the 2026-27 fiscal year. This provides a guardrail for fiscal policy to send a signal to the financial markets that the government is committed to limiting its deficits.

The government is planning a $40 billion deficit on a budget of $488.7 billion. By 2028-29, the deficit will be $18.4 billion on a budget of $594.8 billion.

The Ontario Chamber of Commerce offered several criticisms of the FES, including its disappointment that the deadline for repayment of CEBA loans was not further extended. Additionally, the FES includes $20.8 billion in additional spending than originally projected over the next six years. This is being done in a time when interest rates area at a two-decade high. The additional spending also pushes debt service costs to over $60 billion by 2028-29 (currently, debt service costs are $46.5 billion annually).

CEBA LOAN EXTENSION DEADLINE

The Mississauga Board of Trade was actively supportive of the Canadian Chamber of Commerce’s efforts to persuade the federal government to extend the deadline for Canada Emergency Business Account (CEBA) loan repayments. In September, the federal government extended the deadline to pay outstanding loans interest-free to January 18, 2024. After that date, CEBA loans will have a 5% interest rate to be paid in full by December 31, 2026, a one-year extension form the previous deadline.

Many industry groups, local and provincial chambers of commerce as well as the Canadian Chamber of Commerce called for the new repayment deadlines to be further extended beyond the aforementioned dates.

Why should the CEBA loan deadline be extended? As of July, 2023:

• 49% of small businesses are still making below normal revenues;

• 50% of food service operators are currently operating at a loss or breakeven in comparison to 12% prepandemic; and,

• 45% of Canada’s tourism businesses are likely or somewhat likely to close within the next three years without government intervention into their mounting debt load.

Moreover, as of May, 2023, only 21% of CEBA loans had been repaid. Clearly, the vast majority of businesses that received CEBA loans will have a sizeable debt load that will be difficult to pay if the deadline is not extended beyond the end of 2023.