The mayor of Montreal, Valérie Plante, was pleased to contain the increase in municipal taxes below annual inflation in her 2024 budget. Taxes on residential and non-residential buildings will increase by 4.9% and 4. 6% in 2024, while annual inflation measured by the Conference Board of Canada was 5.2% (as of August 31). The budget nevertheless contains some warning signs, in that there are no initiatives planned to limit spending.
In 2017, when Valérie Plante won the mayor’s office, the municipal budget was $5.20 billion, and the municipal workforce was 22,354 employees (in person-years). In 2024, the budget will be 6.99 billion, an increase of 34%. This is much more than inflation. And the workforce will swell to 25,162 person-years, up 13%, still compared to 2017.
The Plante-Rabouin administration will say that the City of Montreal faces immeasurable challenges, including adaptation to climate change, the shortage of affordable housing, the post-pandemic decline in public transport ridership. and economic activity in the city center, the maintenance and upgrade of infrastructure and the road network.
This is all true. The fact remains that the municipal administration has many ambitions in areas of competence which are not always its own. She is looking for responsibilities, where she could think about better use of the resources and funds at her disposal.
The scandal of excessive spending at the Office de consultation publique de Montréal (OCPM) is a laughable anecdote in a budget of 6.99 billion. For the average citizen, this ends up symbolizing a culture of carelessness in the management of public funds which is not likely to inspire confidence. Ditto for this insane decision to provide “welcome baby” kits to Montreal families, at a cost of $200 each. Once again, it’s nothing in a budget, but it’s the kind of initiative that leaves you wondering about the sense of priorities of the Projet Montréal administration.
During the last municipal elections, Mayor Plante became the de facto leader of a new group of elected officials determined to demand more powers, autonomy and financial levers for the main cities. This bloc even takes on the appearance of an official opposition for the Legault government. The results are disappointing, as evidenced by the failure of discussions on taking charge of the transport companies’ deficit by Quebec.
The common front that Valérie Plante initiated as mayor and president of the Urban Community of Montreal (CMM) ended in failure. Quebec will assume 70% of the shortfall (265 million), while the cities hoped for more. This standoff monopolized all the attention, to the point where the Legault government did not benefit from any positive impact for the conclusion of a new fiscal pact with the cities and its boost to transport companies. The episode placed Mayor Plante in a weak position. The Minister of Finance, Eric Girard, indicated that he did not appreciate this type of last-minute negotiations.
Mayor Plante seemed to relinquish her responsibilities in cost management at the Société de transport de Montréal (STM), at the same time as she took citizens hostage by threatening to close the metro at 11 p.m. This irresponsible proposal is still in the STM’s budgetary disaster scenario.
There are choices that are entirely up to the City. The latter cannot always shovel its budgetary constraints into the court of Quebec and subsequently claim more power and autonomy, at the risk of further losing its influence, already very limited, with the CAQ government.
The 2024 budget is neither scandalous nor prodigious. It limits the damage for taxpayers, without fanfare. It’s a shame, because Mayor Plante exercises unique leadership in the fight against climate change — THE challenge of our time. It is a feat recognized worldwide whose interlocutors of Mme Plante in the Legault government and in opposition at city hall do not always understand the importance. The dispersion of budgetary priorities and the fragility of its intergovernmental relations should not erode its support by 2025.