What took them so long? Mayor Fred Eisenberger, and members of the budget steering committee agreed this week to consider what a few months ago was unthinkable, including shutting down city hall.

Because of the city’s already precarious financial situation, the mayor and senior staff have been asking themselves what would happen if the province really does follow through on its promise to cut Hamilton’s special funding next year that totalled about $26 million, including the social services monies in 2009. And forget about any help from the federal and province governments. The federal government is contemplating running a deficit next year to, in Prime Minister Stephen Harper’s words, provide a “sufficient stimulus” to kick-start the economy.

The Conservative government is expected to deliver a mini-budget at the end of November with the promise of calming the nerves of jittery Canadians.

The prime minister’s economic policy moves comes in the wake of the two-day G20 summit where world leaders agreed to an ill-defined economic plan to reform international institutions, tighten global regulations and inject life into their individual economies. If undertaken, the reforms could be the most sweeping overhaul of the world’s international financial structure since the end of the Second World War. But that is small comfort to struggling municipalities.

The province has decided it will run a half-billion budget deficit itself, and it will slowly close the financial tap to municipalities, particularly Hamilton. Ontario has its own financial problems that will soon be exacerbated with the global slowdown. It has now become a “have-not” province with the once proud “engine” of Canada now sputtering with declining tax revenues and a disintegrating manufacturing sector. And that’s just a start. With the auto sector, Ontario’s second largest industry behind agriculture heaving its death throes, it means the province will be unable to help municipalities, particularly Hamilton.

A financial bailout by both levels of government for the auto sector remains in limbo as politicians wait to see what form it takes in the U. S. Allowing one or more of the Big Three automakers to die would be devastating to not only secondary auto-parts manufacturers, but to companies that deal in primary resources such as steel.

About one-third of the Big Three automakers’ production occurs in Ontario. Hamilton’s steel companies are already reeling from the economic slowdown. U. S. Steel announced that it was laying off 177 workers in Hamilton. The city was also hit last week with another dose of economic reality when Hamilton Health Sciences announced it was cutting about 485 jobs in an attempt to balance its 2009 budget. Now Hamilton politicians are hearing the alarm bells warning them of this economic tsunami. Hopefully, it’s not too late.

Mr. Eisenberger proposes councillors review unprecedented cuts, including closing city hall for possibily two weeks, which could mean service cuts and temporary layoffs. Councillors have also agreed to higher user fees on services, and finally, politicians approved higher planning and rezoning fees, which have been one of the lowest in the area for years.

But as city officials and even the mayor this week acknowledged, it may not be enough. The U. S. housing collapse and credit crunch has a good chance of infecting Ontario’s once booming housing market. Hamilton was a prime beneficiary that meant a steady stream of revenue. The important source of money could now run dry.

And if people think Hamilton can just dip into its reserves, forget it. The city’s reserves are nearly bone dry from the constant use over the years. So now what? The city must take a leadership role to not only make the necessary preparations for the inevitable economic storm on the horizon. But politicians need to provide a sense of calm for Hamiltonians. Instead of wailing about how the city is hard done by, it’s time this municipality stands up for itself and protects its taxpayers. Because it looks like the city may be alone is fighting off what could be the worst economic situation since the Great Depression.