Costs of Peel Region split grow to $4.4M raising question of reimbursement by Ford government

The cost of reorganizing the Region of Peel has grown to $4.4 million, according to public documents, raising new questions about whether the Ford government will step in to relieve local taxpayers of the burgeoning price tag of the provincial policy that was ultimately reversed.

In the months after the Ford government passed the Hazel McCallion Act, the law – which initially sought to dissolve Peel region and distribute its service among Brampton, Caledon and Mississauga – resulted in racking up millions of dollars in expenses to deal with the fallout.

New documents provide a detailed breakdown of Peel Region’s costs related to the province’s decision, as well as the millions incurred by the five-member transition team that was tapped to oversee the dissolution.

Through 2023, a staff report written by the Region of Peel said it spent $2.7 million to deal with the issues stemming from the planned dissolution:

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$912,350: Employee Psychological Health and Wellness
$1,019,302: Long Term Disability Wellness Premium
$248,170: Staffing (HR, Communications, Legislative)
$189,243: Tuition
$178,548: External Legal Support on Employee, Labour and other matters
$144,995: Internal Legal (finance, legislative, water/ wastewater)

Part of those expenses, sources said, are related to the exodus of staff from the region as employees braced for potential layoffs as a result of the legislation.

In December, the Region of Peel said roughly 300 people had left since the dissolution was announced, including the region’s treasurer, director of transportation and a number of planners. At the time, the region said roughly 10 per cent of its jobs were vacant.

Texts sent to the government by Peel Transition Board chair John Livey around the same time, obtained using freedom of information laws, said the attribution rate was 12 percent but “not much different than other high-pressure municipalities.”

While Peel Region has shelled out millions to deal with its side of the impacts stemming from the transition, it’s also expected to pay for the cost of the transition team which has grown to more than $1.5 million.

Between July and December 2023, transition team-related costs amounted to $858,332:

$208,096: Salaries and Wages
$11,805: Employee Benefits
$5,403: Transportation and Communications
$392,654: Services
$10,572: Supplies and Equipment
$93,276: Lease
$72,523: Legal
$64,000: Mediator

The region was given a second invoice this Spring of another $635,137 for salaries, benefits, legal fees and a lease at the Atrium on Bay Street.

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The costs stemming from the transition board, some local city councillors believe, should be taken care of by Queen’s Park since the dissolution is a provincial priority.

Brampton Coun. Gurpartap Singh Toor tabled a successful motion Thursday asking the Ford government to “fully fund” the work of the transition board, which currently sits at $1.5 million.

It’s a position echoed by the Ontario NDP.

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“Peel taxpayers are on the hook … and I think the government would be hard-pressed to say what citizens got for that money,” NDP Jeff Burch told Global News on Wednesday.

“To stick Peel taxpayers with a 1.5-million bill for this fiasco is really irresponsible, and we think the premier should pick up the tab for his own government’s incompetence.”

Housing Minister Paul Calandra wouldn’t commit to the idea on Thursday but outlined a scenario he might be willing to foot the bill.

“I think it will also help inform some of the decisions that I’m considering, and that we’re still considering in the seven fastest-growing areas of the province of Ontario,” Calandra said referencing potential reviews of other governments like York or Durham.

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“If the transition board helps me inform decisions at the conclusion of that, then I think it’s only fair that those costs should be covered by the province and not by the taxpayers.”

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