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November 2001 Newsletter

Council Picks Expressway Over Hospitals

Back in April, Mayor Wade called a press conference to announce that the expressway would start construction this fall. He was asked where the $200 million would come from. His response: "We'll find the money".

Today local hospitals are seeking $131 million in grants from the City. Mr. Wade's response is a little different than what he said for the expressway. On the hospitals, Mr. Wade says that he has no idea where the city will find the monies.

Mr. Wade and other councillors say that the provincial government should be paying for the hospitals, not the City government. They seem to have forgotten that the provincial government is promising to pay a substantial portion of the costs of building the expressway. Perhaps the Council could ask the Province to re-allocate those monies to the hospitals.

The City staff report on the hospital funding requests is revealing. It points out: "Should Council decide to provide hospital capital funding, it should be noted that 2002 tax levy increases can not be imposed against multi-residential, commercial and industrial assessment. Accordingly, any hospital funding options impact only the residential tax base." Of course, the same is true for the expressway. Mr. Harris has legislated that tax increases cannot be imposed on commercial and industrial properties because they are allegedly already too high (even after a $20 million reduction provided by Hamilton to these properties in 2001).

The staff report also summarizes the financial crisis facing Council. It notes that "a major funding backlog exists for previously approved capital projects and related debt requirements (up to $85 million)" and "hard infrastructure deficiencies/funding shortfalls for such services as roads, water, sanitary/storm sewers, and waste management plus deficiencies for all other existing facilities, buildings and fleet amount to about $200 million per year."
Both of these financial problems are directly related to the spending on the Linc and the preparations for the valley expressway.

The hospitals have compelling arguments in favour of their funding requests. The regional Cancer Centre is asking Council for $600,000 a year for the next five years. They are making similar appeals to the surrounding municipalities that are also served by the Cancer Centre. It will obviously be very difficult to convince Niagara or Brant, or other neighbouring governments to provide a grant IF Hamilton has already refused. The $3 million sought by the Cancer Centre from Hamilton is less than 7% of the $45 million they need. St. Joseph's Hospital is trying to raise $188 million and is asking Hamilton Council for 25%. The Civic Hospitals need $191 million and want Council to provide about 40%.

Staff (and many councillors) argue that the province should meet these bills. However, the province is already committed to giving the Cancer Centre $33 million and the Civic Hospitals $99 million. In the past, local governments have helped out with hospital fundraising. At least 20 municipal governments are continuing this practice. Waterloo is giving $37 million to its hospitals while York Region is donating $62 million. Hamilton staff says these municipalities have more money than we do.

And that's exactly the problem. Hamilton doesn't have any money for hospitals because it insists on pouring monies into the bottomless expressway pit.

Since July, Friends of Red Hill has been handing out leaflets at local hospitals that point out this problem. If you can help out with one of these distributions, even for an hour or two, please call (905) 381-0240.


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