Plenty to like in federal budget for Markham mayor, but expresses concern over ‘much-needed’ transit investment

By Gene Pereira, Local Journalism Initiative reporter

While he found much to appreciate in this week’s (Nov. 4) first federal budget by Prime Minister Mark Carney’s Liberal government, Markham Mayor Frank Scarpitti also expressed some concerns with the over 400-page document.

While the local mayor was encouraged to see more money in the budget for housing and other infrastructure investments, he didn’t find the funding for what he says is “much-needed” transit investment.

This year’s federal budget, which aims to balance operational spending in three years, outlines billions in proposed cuts to public services along with investments intended to spur growth and productivity amidst a slowing economy and trade uncertainty, particularly with the United States.

In a statement released by the Markham mayor the day after the federal budget was released, he highlighted the $51 billion Build Community Strong Fund that invests in a wide range of community infrastructure through three streams over the next 10 years.

“I applaud the federal government for earmarking more money for much-needed infrastructure – new infrastructure needed to build more housing and infrastructure needing investment,” said Scarpitti.

A total of $17 billion, with $5 billion dedicated to healthcare, will be earmarked to Provincial and Territorial projects, including funding for infrastructure to enable more housing.

A further analysis of the program that substantially reduces development charges will have to be done to ensure this is not a net loss of revenue, negatively affecting homeowners through an increase in property taxes.

“While I strongly support the federal government’s goal on building more homes, any funding arrangement cannot result in a greater financial burden for property taxpayers,” said the Markham mayor.

Another stream of community infrastructure investment will see some $6 billion spent on Direct Delivery Initiatives.

This will provide funding for key major community projects and calls for collaboration with the private sector on certain projects.

A third stream will see more than $27 billion go to Community Projects.

This, says Scarpitti, is a rebuilding of the Canada Community-Building Fund (Gas tax). It provides funding for aging infrastructure, community amenities, and capital improvements.

The total money represents a billion-dollar increase in spending for the program by the federal government.

Last week in Ottawa, the Markham mayor said that he advocated for the longstanding call from the Federation of Canadian Municipalities (FCM) to double this fund to $5B annually.

This would help minimize the fiscal impact on property taxpayers as communities struggle to reinvest in aging infrastructure.

“While this is a welcomed increase, it’s a far cry from what’s needed,” said the Markham mayor. “I am pleased the government will continue to support the very successful Housing Accelerator Fund until 2027.”

Scarpitti says he is particularly “concerned” that the much-needed transit investment seems to have been diminished in the 2025 federal budget.

“I will be seeking further clarification on the Federal government’s support for transit investment and expansion,” he said. “As Chair of the York Region Rapid Transit Corporation, I will continue to push forward on two key Bus Rapid Transit (BRT) projects in York Region: Highway 7 East and Jane Street.”

Scarpitti did add that he was “extremely pleased” to see the High Frequency Rail Project given a high priority by moving up its timeline from eight to four years.

“I will continue to advocate the need for a Markham/York Region station on this important rail line given the population growth in York Region and the connection to key transit lines,” he said.

The new federal budget will see some $141 billion in new spending over the next five years. Along with its “nation-building infrastructure,” the federal government says it is also “supercharging growth” in response to what is being said will be a lacklustre economic picture.

Companies will be allowed to write off shares of capital investments faster. New measures will also allow companies to write off expenses for manufacturing or processing buildings.

“I congratulate the federal government on the bold initiatives to grow the economy and make Canada more competitive,” said Mayor Scarpitti in his statement. “Budget 2025 introduces Productivity Super-Deduction measures encouraging capital investment, and allows for quicker write-offs of eligible business costs, from equipment to patents.”

The budget will also see over $1 billion go to Artificial Intelligence (AI) initiatives.

“This is welcome news as several Markham companies are at the forefront of advancing AI technologies,” said the Markham mayor. “Both these initiatives will support the development of the Markham Innovation Exchange (MIX), our innovation district.”

A deficit of $78 billion – far above the $42 billion the Liberals promised it would be – is being projected by the federal budget for 2025-26 before falling to $65 billion in the next fiscal year. By 2029-30, the government is forecasting the deficit will fall to $57 billion.

Scarpitti also promised residents he would continue to push the federal government for other cost savings.

“I will continue to call on the federal government to allow individuals to write off a portion of all their mortgage payments or monthly rent based on income levels,” said the Markham mayor.

 

Photo: “I applaud the federal government for earmarking more money for much-needed infrastructure – new infrastructure needed to build more housing and infrastructure needing investment,” said Markham Mayor Frank Scarpitti.