Toronto City Councillors voted on the 2022 Budget on February 17, 2022. Here are some of the takeaways.Â
Emergency federal transit funding announced at the last second
In January 2022, the TTC predicted a $561 million budget shortfall this year because of lower ridership during COVID. Municipal budgets can't be passed with deficits. On the same day that City Council sat down to vote on the budget, the federal government announced $750 million in emergency transit operations funding. This is welcome news for transit agency budgets across Canada that rely on rider fares, but have not seen ridership return to 100%. And Ontario is reportedly planning to provide $300 million in funding. Operational funding from provincial and federal governments should be stable and ongoing. Relying on "just in time" funding means the TTC provides "just enough" service. That's why TTCriders has argued that this Fall's service cuts would have been prevented with stable operational funding. Questions remain about how the new funding will be allocated and whether it will be enough to meet the TTC's full shortfall.
A "status quo" budget that doesn't meet the crises of climate change and pandemic recovery
After the staff-recommended Toronto budget was presented on January 13, only $3 million dollars in additional spending was added by City Councillors. As Social Planning Toronto explains, "if the City had a $1 million budget, it would be the equivalent of adding $230 to it." In comparison, the final phase of the promised Fair Pass low-income transit discount will cost at least $20 million, according to an October 2020 City staff report. A motion from Councillor Gord Perks to eliminate the TTC's vehicle puchase backlog and to increase the TTC capital budget by $45 million to purchase and overhaul vehicles failed. TTCriders was proud to join 58 other organizations in signing an open letter calling for additional budget investment. Read more budget analysis from Social Planning Toronto here.
What's happening with the Fair Pass?Â
On February 17, 2022, nearly all City Councillors voted "yes" to a motion from Councillor Mike Layton to "proceed with the implementation of the next phase of the Fair Pass program as quickly as possible." City Council first approved the Fair Pass in December 2016 as part of its Poverty Reduction Strategy, but the program is still not fully funded. The Fair Pass discounts single fares to $2.10 and monthly passes to $123.25. The final phase of the Fair Pass will extend the discount to people earning the Low Income Measure plus 15%, or approximately $28,925 for a single person (2019 LIM figures).Â
Athough the final phase of the program was not fully funded this year, City Councillors have told staff to make implementing the Fair Pass a priority. During the January 18, 2022 Budget Commitee meeting, staff shared that they are still working on an agreement with the Canada Revenue Agency and working on the "Automatic Income Verification" process so that it's easy for people to apply to the discount.
In the meantime, a small expansion of the Fair Pass program was included in this year's 2022 budget: all people who recieve OW and ODSP, even if you receive other transportation supports, will be eligible for Fair Pass single fares or monthly passes. This will make the program fairer and easier to apply to.
TTC's 5-Year Fare Policy lacks dedicated funding
The TTC is creating a 5-Year Fare Policy this year, but does not have additonal budget to implement changes like fare capping. This is a missed opportunity to invest in affordable transit and measures that could attract more riders to take the TTC. Two dozen people signed up to speak to the TTC Board on February 10th, 2022 about the fare policy plan. Sign up to to speak to the TTC Board on April 14th, 2022 when they debate the final fare policy report.Â
Photos below from Valentine delivery on February 14, 2022