---
title: "Chow wins second term facing $1.1 billion budget gap and expiring Ontario deal"
description: "Toronto's re-elected mayor says she will keep property tax increases near the rate of inflation as she prepares to negotiate a new funding deal with the province."
canonical_url: "https://voche.me/on/toronto-2026/news/chow-budget-ontario-deal-property-tax-october-27"
last_updated: "2026-10-28T17:59:37.485Z"
---

Toronto Mayor-elect [Olivia Chow](/on/toronto-2026/candidates/olivia-chow) won a second term on October 26, 2026, and now faces a projected $1.1 billion gap in the City's 2027 budget, Global News reported on October 27.

The gap follows the expiry of a deal Ontario negotiated with Toronto in 2023 that provided $1.2 billion in annual operating funding. That agreement runs out this year, and Chow will need to negotiate a new one with Premier Doug Ford.

Chow said she will spend "every moment" of the next four years working hard for Toronto residents. On the budget, she renewed her campaign pledge to keep property tax increases at or near the rate of inflation. That pledge is tracked at [this site's promise tracker](/on/toronto-2026/tracker).

Ford congratulated Chow and said he will "work with anyone to drive the economy to make sure we protect communities and companies and people" from U.S. tariff pressures. He did not describe what a new Toronto funding deal would look like.

## What the unofficial results show

The City of Toronto's unofficial results show Chow received 532,201 votes, or 54.16 percent of ballots cast in the mayoral race. Brad Bradford finished second with 404,013 votes, or 41.11 percent. The City counted 982,660 total votes. The City Clerk has not yet declared the official results.

## What the second term starts with

The four-year term starts November 15, 2026, under section 6 (1) of Ontario's Municipal Elections Act, 1996. The first Council meeting follows on November 18, 2026.

Chow's campaign centred on free school lunches for Toronto students and a weekly transit fare cap, under which TTC riders would pay nothing once they have taken 10 paid rides in a week. Her team says shovels for 10,000 new rental homes would go in the ground in 2027, and she plans to bring housing and grocery-related by-laws to the first Council meeting.

## What the budget pressure means for voters

Toronto's 2027 budget will be debated early in the new term. A $1.1 billion gap means Chow faces a choice between new provincial money, higher taxes, cuts to City services, or some mix of all three.

Her promise to keep tax increases near inflation sits directly against that number. She has also pledged not to cut public services. Reaching both goals depends on what Ontario agrees to pay. That negotiation has not started yet.

Toronto residents can follow the status of Chow's property tax promise and all her other second-term commitments at [/on/toronto-2026/candidates/olivia-chow](/on/toronto-2026/candidates/olivia-chow).

## Sitemap

See the full [sitemap](/on/toronto-2026/sitemap.md) for all pages.