Budget Deliberations 2026
Draft Budget and Business Plan
The proposed reductions reflect a municipality under significant strain from rapid growth, aging infrastructure, and a heavy reliance on property tax revenue. While "Yellow" cuts represent over $17 million in potential savings that Council could theoretically approve to reach budget targets, "Red" cuts represent deep service impacts that staff warn would undermine core municipal safety, transit, livability, equity, and maintenance.
You'll notice that the biggest reduction opportunity is with fiscal services. This is a result of the reserve strategy approved by Council in July (blog post here, original staff report here). In very short terms, reserve updates are required because current levels—particularly in Risk and Options Reserves—fall significantly below industry-recommended thresholds and professional standards, leaving the municipality particularly vulnerable to unforeseen economic or environmental shocks.
Additionally, the municipality is facing a growing reliance on volatile, non-tax revenue streams and projected funding shortfalls for major capital projects, including long-term demand for strategic growth initiatives that necessarily need us to update our reserve strategy. I feel obliged to point out that these growth initiatives are not new to this council. They have been forecasted for some time. The Forum rebuild, for example, has been in the works since 2014 and approved in 2019. The Windsor Street Exchange project was initiated in 2019. Having said that, Council also asked for a briefing note to stagger projects over a longer timeframe to calibrate projects with a sustainable funding strategy (blog post here). How these adjustments will affect this (and future) tax increases will come back in the BAL debate.
Below is a breakdown of potential cuts by their color value (Business Plan and Presentation links also included):
Reductions Overview:
| Business Unit | "Yellow" Reductions (For Consideration) | "Red" Reductions (Not Recommended) |
|---|---|---|
| Public Works | $11,349,000 | $2,460,000 |
| Halifax Transit | $1,626,000 | $15,768,700 |
| Fiscal Services | $2,277,400 | $19,000,000 |
| Community Safety | $742,800 | $474,200 |
| Corporate Services* | $1,544,600 | $207,000 |
| Parks & Recreation | $402,200 | $150,000 |
| Halifax Public Libraries | $290,800 | $0 |
| Property, Fleet & Environment | $15,000 | $193,400 |
Operations Reductions (Public Works, Parks & Rec, Property, Fleet & Environment):
Proposed Operations Business Units Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Public Works | Reduce Transit Stop Snow clearing service standard from 24hrs to 48hrs | $750,000 | Yellow (For Consideration) |
| Public Works | Increase parking fees at MetroPark | $150,000 | Yellow (For Consideration) |
| Public Works | Eliminate curbside collections of bulky waste and white goods | $333,000 | Yellow (For Consideration) |
| Public Works | Reduce mobile household special waste (HSW) events from 17 to 11 | $96,000 | Yellow (For Consideration) |
| Public Works | Elimination of Sidewalk plowing | $8,000,000 | Yellow (For Consideration) |
| Public Works | Increase parking fees for on-street parking | $2,020,000 | Yellow (For Consideration) |
| Public Works | Eliminate Enhanced Maintenance Areas seasonal positions | $460,000 | Red (Not Recommended) |
| Public Works | State of Good Repair reduction | $1,400,000 | Red (Not Recommended) |
| Public Works | Discontinue Senior Snow Program | $600,000 | Red (Not Recommended) |
| Parks & Recreation | Reduce Discover Halifax contribution by 5% | $70,000 | Yellow (For Consideration) |
| Parks & Recreation | Reduce Discovery Centre contribution | $10,000 | Yellow (For Consideration) |
| Parks & Recreation | Reduce Lake District Recreation Association (LDRA) contribution by 10% | $10,000 | Yellow (For Consideration) |
| Parks & Recreation | Increase Ice Rental and Fee Revenues | $312,200 | Yellow (For Consideration) |
| Parks & Recreation | Offer 95% discount on Affordable Access Program instead of 100% | $150,000 | Red (Not Recommended) |
| Property, Fleet & Environment | Reduce security coverage outside of regular operating hours at City Hall | $15,000 | Yellow (For Consideration) |
| Property, Fleet & Environment | Cleaning reductions | $58,400 | Red (Not Recommended) |
| Property, Fleet & Environment | HalifACT Consultant reductions | $135,000 | Red (Not Recommended) |
Halifax Transit Reductions:
Proposed Transit Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Halifax Transit | Discontinuing waiving charter fees (BAL_022) | $129,400 | Yellow (For Consideration) |
| Halifax Transit | Eliminating free transit fare for volunteers at major events (BAL_023) | $144,500 | Yellow (For Consideration) |
| Halifax Transit | Stop free ferry services on Canada Day and Natal Day (BAL_024) | $130,000 | Yellow (For Consideration) |
| Halifax Transit | Reduce Alderney Ferry service to 30-minute intervals (BAL_035) | $1,222,100 | Yellow (For Consideration) |
| Halifax Transit | Fare Increase - $0.25 | $865,600 | Red (Not Recommended) |
| Halifax Transit | Remove Lowest Performing Services | $4,023,000 | Red (Not Recommended) |
| Halifax Transit | Remove Sunday & Holiday Service | $5,786,800 | Red (Not Recommended) |
| Halifax Transit | Remove Service after 10pm | $5,093,300 | Red (Not Recommended) |
Fiscal Services Reductions:
Proposed Fiscal Services Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Fiscal Services | Cut Community Grants program by 10% (BAL_014) | $50,000 | Yellow (For Consideration) |
| Fiscal Services | Cut Tax-Relief for Non-Profits program by 10% (BAL_015) | $955,400 | Yellow (For Consideration) |
| Fiscal Services | Cut Community Museums program by 10% (BAL_016) | $22,000 | Yellow (For Consideration) |
| Fiscal Services | Remove requirements for living wage rates in operational service contracts (BAL_032) | $1,250,000 | Yellow (For Consideration) |
| Fiscal Services | Reconsider Reserve strategy | $18,000,000 | Red (Not Recommended) |
| Fiscal Services | Benefits redesign | $1,000,000 | Red (Not Recommended) |
Community Safety Reductions:
Proposed Public Safety Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Community Safety | Reduce funding for Stabilization Centre (due to inability to operationalize service) | $392,800 | Yellow (For Consideration) |
| Community Safety | Reduce unutilized funding to establish a drop-in centre | $350,000 | Yellow (For Consideration) |
| Community Safety | Elimination of Mobile Food Market Contribution Agreement | $184,200 | Red (Not Recommended) |
| Community Safety | Reduction of the Community Mediation Pilot | $50,000 | Red (Not Recommended) |
| Community Safety | Cease annual contribution agreement with Ecology Action Centre for funding related to the Halifax Food Council | $240,000 | Red (Not Recommended) |
Corporate Services Reductions:
Proposed Corporate Services Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Chief Administrative Office | End contribution to the development/delivery Engage NS 2026 Quality of Life Survey (BAL_006) | $80,000 | Yellow (For Consideration) |
| Chief Administrative Office | Freeze planned 2% increase in funding to Halifax Partnership (BAL_007) | $44,900 | Yellow (For Consideration) |
| Chief Administrative Office | Reduce funding for the BID Enhanced Maintenance Program | $207,000 | Red (Not Recommended) |
| Finance & Asset Management | Increase Revenue Fees (BAL_017) | $1,005,100 | Yellow (For Consideration) |
| Human Resources | Pause Bridging the Gap Program (BAL_013) | $870,000 | Yellow (For Consideration) |
| Information Technology | Eliminate Audiovisual Technology Analyst position (BAL_036) | $225,800 | Yellow (For Consideration) |
| Legal, Risk & Insurance Services | Deferral of Enterprise Risk Management processes (BAL_010) | $193,800 | Yellow (For Consideration) |
Library Reductions:
Proposed Library Budget and Business Plan (presentation)
| Business Unit | Service Cut / Reduction Description | Amount | Color Value (Status) |
|---|---|---|---|
| Halifax Public Libraries | Delay incremental increases to library collections by one year (BAL_009) | $290,800 | Yellow (For Consideration) |
Proposed Auditor General Budget and Business Plan
0% increase, no requests for new FTEs. No suggested reductions.
Proposed Mayor's Office Budget and Business Plan (presentation)
16% increase, one new FTE. No suggested reductions. 1 FTE moved to the BAL.
During deliberations, many items were moved to the BAL (Budget Adjustment List), however not enough to move us towards a near zero tax increase. Councillor Cleary moved a BAL under asking staff to return with a $40 million dollar reduction package. The intent of the motion is to further remove any guard rails Council put on staff in the making of their reductions list. The BAL unders already moved by Council will likely be included, and as suggested by staff, so will some we did not.
It's also important to note that there are BAL overs moved by Council. I currently have 2: one diversion planning officer (DPO) for bylaw enforcement for commercial, industrial and retail litter from my previous motion (blog post here, staff report here) at $95 000, as well as funding to support expansion of BayRides ($100 000). There are no guarantees these will pass (and given the scarcity of dollars, I may not table them for debate), but they also don't present as a significant contributor to the BAL over list, either. Major BAL overs moved by other councillors include 20 Firefighters, 6 RCMP, and additional articulated busses to support the core service plan - including $13 000 000 in busses, and $1 500 000 in staffing.
The BAL debate commences in March, but I expect that Councillor Cleary's BAL under will be the starting place for debate.
As always, your feedback is welcome. These are extraordinary budget times, and feedback is important and appreciated.