Queens Park left Toronto in a dilemma after Ontario's 2023 budget revealed little in the way of financial rescue for the city struggling with financial distress.

The largest municipality in Ontario called on the province to help cover the huge shortfall in 2023, requesting $510 million in so-called COVID-19 residual costs.

But the government did not ease the city's current pandemic pressure, instead pointing out that it was waiting to see how Ottawa responds to a similar request from Toronto in the federal budget to be unveiled next week.

It also provided $48 million in funding for supportive housing costs in Toronto, meeting one of the three requests made by Deputy Mayor Jennifer McKelvie to Finance Minister Peter Bethlenfalvy in a letter sent earlier this month.

However, the city's 2023 budget will still suffer a nearly $1 billion deficit without additional funding from Queens Park and Ottawa.

For his part, Bethlenfalvy told CP24 on Thursday: "Toronto's first request was for more money, $48 million, to get supportive housing to help the homeless, and we were submitting a full request. That was their first question."

Toronto officials were also hoping the province would cover the cost of development fees that the city will no longer receive as a result of Bill 23, which reduced fees to encourage building more housing.

City staff relied on these revenues to fund the infrastructure and services needed to support growth, linking the loss to more than $200 million annually.

The government reiterated on Thursday that it will conduct a review of selected municipalities to establish a baseline for municipal reserves and development fees, and will then decide how to cover any deficit related to Bill 23.

Bethlenfalvy also told CP24 that discussions will continue on funding to compensate for lost revenue due to the pandemic.

The $48 million requested by the city will pay for comprehensive services for 2,000 vulnerable residents in supportive housing, which Deputy Mayor Jennifer McKelvie said would be key to addressing the city's homelessness crisis.

But critics said the money was too little and too late, accusing the government of abandoning Toronto.

Liberal critic for municipal affairs Stephen Blais told CTV News: "Transit fares may rise, property taxes could go up more than they have already. There will potentially be a decrease in services if the city cannot cover these costs."

Jessica Bell, housing critic for the New Democratic Party, also said, "Because the Conservatives are not stepping up, Toronto residents will see a significant increase in property taxes and cuts to services."