The City of Toronto's bid for the 2015 World Expo is on the verge of collapse because the province has "cold feet," a city councillor says.

With the deadline for an official bid less than two weeks away, the province has refused to be the financial guarantor of the exposition.

"The province doesn't seem to want to get on the dance floor," said Coun. Brian Ashton. "It's got cold feet."

A spokesperson for the Ministry of Tourism told reporters late Monday that the province cannot afford to "write a blank cheque" for the world's fair at a time when the focus is on schools and hospitals.

Premier Dalton McGuinty echoed that statement Tuesday by calling for the federal government to financially backstop the  bid, pointing out that Ottawa has been running "significant surpluses for a long period of time."

"If any level of government can provide some guarantee for any cost overruns, that would be the federal government," said McGuinty.

The Paris-based International Bureau of Expositions, which awards the world's fairs, requires bid countries to pick up any deficits.

Can't cover deficit due to law, Ottawa says

But while the federal government has expressed support for the bid, it says that under a 1995 federal law, Ottawa cannot pick up a potential deficit.

The policy states that provincial governments must agree to be the financial guarantor for any major events such as expositions and Olympics.

Supporters of Toronto's bid for the expo say the province's refusal to become the financial guarantor essentially kills the bid.

Province, Ottawa would rake in billions: Ashton

Ashton said Toronto isn't the only one that would benefit from the exposition, pointing out that it's projected to generate $5.3 billion in revenue, mostly for the provincial and federal governments.

Ashton said the deficit, if there is one, is predicted to be between $400 million and $500 million and wouldn't affect the province's budget until 2016.

But other people have estimated that it could run up to $700 million.

"I'm unsure why they're so queasy," Ashton said. "It's not a 'we need the cheque today.'"

Ashton said "intense discussions" are underway between the city and province to search for financial solutions.

Toronto's mayor hopeful despite deadline

Toronto Mayor David Miller said he remains optimistic despite the looming deadline.

"There's a very tight timeline and the ball's in their court," said Miller. "I hope they see the wisdom of continuing."

Toronto must submit its bid by Nov. 3.

Canada hosted its first world exposition in Montreal in 1967, with the second nearly two decades later in Vancouver.