$500 million won’t prevent fare hikes and service cuts: Here’s why, and what you can do about it

A week after the positive announcement that Toronto would be getting almost $500 million in federal infrastructure funding, it’s time to assess what that means for the TTC’s capital and operating costs.

What’s the difference between the TTC’s capital and operating costs?  Here’s a chart:

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Most of the federal money will go towards important capital projects with one-time costs.  These projects include: 201 Wheel-Trans buses, replacement of escalators, new signals for Line 2 Bloor-Danforth, and planning and design work for the proposed Relief Line.  (The full list of projects can be found here.)

None of the money will go towards the TTC’s day-to-day operating costs.  That responsibility lies solely with the TTC, through fares and other revenue, and the City of Toronto through its annual subsidy.

Mayor John Tory and City Council are forcing the TTC to cut 2.6% of its budget for next year.  Initially, this was thought to be $15.9 million, based on the TTC’s required city subsidy (also known as the “net” operating budget) of $611.3 million.

But 2017 is going to be an expensive year for the TTC.  It will be switching to the PRESTO fare system, the Spadina subway extension to Vaughan is scheduled to be open, and ridership is projected to go down.  The TTC needs a lot more money next year, not less.

Fare hikes and service cuts are coming because Mayor Tory and City Council are refusing to show leadership and properly fund the operating costs of the TTC.  They would rather have riders pay more for worse service, and blame the TTC for not finding enough “efficiencies”.

The 2017 Toronto city budget process will be kicking off in September, and TTCriders will be holding a series of events to oppose the cuts to the TTC.  You’re invited.

 

Additional references:

Munro, S. (2016, August 5). Understanding the Scale of Proposed TTC Budget Cuts. Retrieved from https://stevemunro.ca/2016/08/05/understanding-the-scale-of-proposed-ttc-budget-cuts/

 

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