Toronto residents face a possible 3.8 per cent property tax hike this year, with no increase in services, and the city's budget chief says it's all because the province hasn't paid its agreed-on share for social services.

The proposed $7.8 billion operating budget presented Monday noted the absence of adequate provincial funding for cost-shared programs such as shelters, child care and the cost of administering Ontario Works.

Budget chief Shelley Carroll called the city's financial situation unsustainable.

She said the provincial government owes the city hundreds of millions of dollars for social service costs.

Carroll is calling on Queen's Park to hand over at least $71 million to help cover the current budget shortfall.

"While we have done significant work to control costs, the impact of provincial programs on the city's budget continues to require significant property taxpayer dollars. This fiscal issue needs to be finally resolved."

The budget recommends a 3.8 per cent property tax increase plus increases in some user fees.

"The increases are required to deliver basic municipal services, and deliver the programs and services identified as Toronto city council's highest priorities," the budget document said.

Mayor David Miller said the province needs to pay its bills.

"We will continue to work with the provincial government to ensure the province pays what everyone agrees is its share for the cost of the programs they have municipalities deliver for them," Miller said.