The Montreal police service has initiated significant cost-cutting measures, targeting overtime and other expenditures, after financial projections revealed it was heading for a substantial budget overrun in 2025.
Projected Deficit Spurs Immediate Action
According to the city's latest $7.67-billion budget and statements from Montreal city manager Benoit Dagenais, spending figures indicated the police department was veering toward a $60-million overrun for the 2025 fiscal year. In response, the force began reducing expenses in the latter part of last year.
The previous city administration under Valérie Plante had allocated a budget of $824.07 million to the police for 2025. However, by last fall, the department was forecasting its actual year-end spending would reach approximately $884.66 million.
New Administration Adjusts Police Funding
At a press conference unveiling the 2026 municipal budget, City Manager Benoit Dagenais provided an update on the situation. He stated that the anticipated deficit for 2025 has decreased since the police began their austerity measures.
"The Montreal police are working in terms of reducing overtime, in terms of different elements," Dagenais explained. He added that the police are continuing to work on the issue this year to further curb expenses, with a notable focus on overtime. Dagenais also cited efforts to hire additional officers as part of the strategy to manage costs.
The new administration of Mayor Soraya Martinez Ferrada, elected in November, has set a police budget of $860.29 million for 2026. This figure is below the forecasted 2025 spending of $884.67 million that prompted the cuts. The city's audited financial statements for 2025 will be released in the spring.
A Recurring Challenge of Overspending
This is not an isolated incident for the Montreal police department. In 2024, the force exceeded its operating budget by more than $48 million, which police chief Fady Dagher attributed largely to personnel overtime. The department has consistently surpassed its allotted budget for years.
This pattern of overspending has drawn criticism from the mayors of island suburbs who contribute to the police budget. They have criticized what they perceive as consistent under-budgeting by the central city administration. The police department is funded as an agglomeration responsibility, shared by Montreal and its surrounding municipalities.
Remuneration constitutes about three-quarters of the total police budget. For 2026, total police remuneration is forecasted to be $660.7 million. The department's actual spending in 2024 was $869.02 million.
