Ottawa Police Service facing $25M budget deficit in 2026

Ottawa Police sign outside headquarters on Elgin St. in Ottawa. (CTV News Ottawa)

The Ottawa Police Service is facing a budget deficit of up to $25 million this year, based on the latest forecast.

A report prepared for June 18 Ottawa Police Services Board finance and audit committee says, of the $25 million in budget pressures the police force is facing, $10 million is “non-recoverable overtime.” The rest comes from known pressures such as protests and the cost of fuel.

The rising cost of fuel is resulting in a projected $900,000 budget pressure, should prices continue to be high. The 2026 police budget was drafted with a price of $1.42 per litre.

The report says demonstrations lead to increased staffing pressures.

“The largest driver of this negative variance is overtime, which is currently overspent due to the staffing of non-recoverable events and demonstrations, and the need for overtime to meet appropriate staffing needs for minimum service levels,” the report says.

Police say no federal funding has been received to offset costs associated with demonstrations related to conflicts in the Middle East.

A mitigation strategy involving a non-operational hiring freeze, discretionary spending freeze, and a non-recoverable overtime reduction target of 10 per cent would, if successful, save around $5 million, the report says, leaving police with a $20 million budget gap.

According to the staff report, the overtime mitigation strategy reduced overtime hours by 15 per cent in the first quarter of the year.

Overall, police spent approximately $14 million more than budgeted in the first quarter of 2026, though half of it is related to timing around when revenues are received. In addition to overtime costs and other pressures, payouts of accumulated sick leave and retirement and Workplace Safety and Insurance Board claims also contributed.

The deficit in 2025 was $29 million, according to the report, which notes that previous years have seen smaller deficits of around $10 million.

The police service says it is working on a 10-year long-term financial plan starting next year that would “establish a sustainable financial position for OPS, which will eliminate future annual operating budget deficits” by 2036. A working group consisting of senior staff at both the City and OPS as well as the mayor’s office met in March and again in May to discuss the plan.

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