Savings
Toronto's Amalgamation Savings
By the end of 2000, annual savings due to amalgamation had reached $136 million. Cumulative amalgamation savings from 1998 to 2000 were $305 million. A large portion of these monies went to offset provincial downloading.
The Province had estimated annual amalgamation savings of $82-112 million. As shown, this figure was exceeded.
In addition to direct savings from amalgamation, the Province also expected additional efficiency savings to arise from amalgamation of between $148 to $252 million. These efficiencies were expected to offset downloading costs.
These were not achieved for two major reasons. The Province's figures were based on amalgamation savings in all programs and services. However, 73% of the new City of Toronto's programs were already amalgamated prior to 1998. This included large programs with significant budgets: police services, social services and Homes for the Aged. Major cost savings from efficiencies in those programs had already been achieved.
Secondly, the Province did not recognize the full costs (e.g. debt) incurred in funding one-time transition costs, wage harmonization costs and service level harmonization costs.
Annual and cumulative amalgamation savings for the City of Toronto
