The Ford Government is walking back cuts announced earlier this month even though it is struggling to tackle its $11.7-billion deficit.
Premier Doug Ford says his government has cancelled retroactive funding cuts to municipalities after local government leaders warned that they will be forced to raise taxes or slash services as a result of the Tories' cuts.
Now, the Ford government says it will work with city mayors to give them "more runway" and maintain funding services including child care, public health and ambulances.
Last week, the government announced it would pay for line-by-line budget reviews to help municipalities find savings.