Toronto has $138 million more than it thought (but they’re “savings,” not a surplus)

Turns out Toronto’s 2011 budget surplus, estimated at $154 million in January, was actually $138 million more than that—prompting Rob Ford to send an email to city staff praising the “permanent and sustainable savings.” Budget chief Mike Del Grande echoed that terminology on Metro Morning today, explaining why the $292 million are “savings” and not a regular ol’ surplus (in Del Grande’s personal dictionary, a surplus “magically appears,” while savings are planned for). Despite the self-congratulation, several publications chalked up the extra cash not to financial prudence, but rather to Toronto’s booming real estate market, which fueled higher-than-expected revenue from the land transfer tax—a tax that Rob Ford has previously promised to do away with. Others pointed out that former mayor David Miller, whom Ford has characterized as a Spendy McSpenderson, actually brought in bigger surpluses in 2009 and 2010. The only thing that’s not yet up for debate is that the majority of the money will be spent to replace Toronto’s aging streetcars. [Toronto Star]

(Images: Rob Ford, Christopher Drost; Bills, Brian nairB and Lauren Siegert)