RE: TTC & Wheel-Trans 2023 Operating Budget
Dear TTC Board Members,
TTCriders is a membership-based organization of transit users. We are writing to urge you to reverse cuts and fare increases, and to express our concerns about the equity impacts of the proposed budget, especially changes to TTC Service Standards and Fair Pass program design.
Service cuts and fare increases will only drive more transit users away, reducing safety and hurting Toronto's chances at meeting our climate goals. Service cuts late at night and in off-peak periods will make the TTC less safe. We urge you to:
1. Fully fund the Fair Pass through a subsidy via the Social Development, Finance and Administration budget, not from raising fees for transit users living under the poverty line
The TTC's 2023 Operating Budget proposes a small expansion of the Fair Pass low income discount, "which will provide access to as many as 50,000 additional residents to a one-third discount on single adult fares and 21% on monthly passes." [1] This arbitrary expansion is deeply troubling for the following reasons:
a. Previous cost estimates suggest that $2 million is only sufficient to expand the discount to 18,000 people or less
The following table from a 2016 City of Toronto staff report estimates that expanding Fair Pass to 36,000 people would cost $4.1 milion. This suggests that $2 million is insufficient to support Fair Pass for 50,000 people; additionally, the subsidy would be higher today because the cost of fares has risen.
Updated cost estimates of expanding the Fair Pass to all eligible low-income residents including low-wage workers have not been released since 2021, but earlier estimates were between $20 million to $30 million per year [3].
| 2018 | 2019 | 2020 | 2021 | |
| Residents Receiving a Discount by Year-End | 36,000 | 66,000 | 193,000 | 193,000 |
|
Discount Cost - Phase 1 |
$4.1M | $7.5M | $7.6M | $7.7M |
| Discount Cost - Phase 2 | - | $4.4M | $7.6M | $7.7M |
| Discount Cost - Phase 3 | - | - | $18M | $32.7M |
| Total Discount Cost | $4.1M | $11.9M | $33.2M | $48M |
| Cost of Presto Card | $0.3M | $0.5M | $1.4M | $0.9M |
| Administration Cost | $0.4M | $0.6M | $1.6M | $1M |
| Gross Program Costs | $4.8M | $13M | $36.2M | $49.9M |
| Replacement Card Fee | -$0.2M | -$0.5M | -$1.1M | -$1.7M |
| Incremental Annual Cost | $4.6M | $7.9M | $22.6M | $13.1M |
| Cumulative Program Cost | $4.6M | $12.5M | $35.1M | $48.2M |
Source: 2016 City of Toronto Fair Pass Report [4]
b. The Fair Pass program is not being expanded to everyone living under the poverty line, or everyone who is meant to be eligible for the final phase.
The proposed $2 million in the 2023 TTC Operating Budget will fund an expansion to low income residents with a family income of 75% of the Low-Income Measure or lower (ie. an annual after-tax income of less than $19,927/single person household, according to 2020 LIM figures).
The final, 3rd phase of the Fair Pass is designed to expand the discount to all low-income
residents with a family income below the Low-Income Measure plus 15% (ie. an annual after-tax
income of less than $30,555/single person household, according to 2020 LIM figures).
| Household Size | Phase 3 Fair Pass proposed income cut-off (LIM + 15%) - Approved by Council in 2016 | "Phase 3A" TTC Budget proposed income cut-off for Fair Pass (75% of LIM) | Poverty Line (Market Based Measure) [5] | Low-Income Measure [6] |
| 1 single person | $30,555 | $19,927 | $24,863 | $26,570 |
c. Increasing costs for some transit users under the poverty line to fund a discount expansion for other transit users under the poverty line is unfair
This is a deeply inequitable policy precedent, especially because the proposed expansion does
not cover all residents living under the poverty line. Essentially, some low income riders are
paying more to subsidize other low income riders.
Low income residents depend on transit the most. 65% of Fair Pass users continued to ride the
TTC in 2020, compared to 35% of overall riders, according to the Poverty Reduction Strategy
mid-term strategy report.
The Fair Pass program was designed to be subsidized through the City Budget through Social
Development, Finance, and Administration, not the TTC Budget, precisely to avoid fare
increases on low-income and other transit riders.
2. Reverse service cuts and proposed changes to off-peak TTC Service Standards
Proposed service cuts will drive more riders away from the system, resulting in a “ridership
death spiral” at a time when TTC should be winning riders back to the system with more
frequent service and lower fares. The 2023 Operating Budget proposes a significant policy
change to TTC Official Service Standards, without an official staff recommendation or any reporting on the impacts of this change. TTCriders is deeply concerned about this policy change
and service cuts for the following reasons:
a. Off-peak service cuts impact women, disabled, low-income, and racialized people, and shift workers the most
Service is being planned for a “standing room only” standard, even in off-peak periods, which
will impact wheelchair users and people using strollers and grocery carts. The TTC’s Official
Service Standards plan for an average of 35 customers per bus in off-peak service periods
(calculated based on the busiest hour of the service period). The 2023 TTC Operating Budget [8] proposes to "increase the pre-COVID vehicle crowding standard at off-peak periods with
capacity for each route and time period planned based on the busiest hour for 45 customers per
bus, 90 customers per streetcar, and 600-650 customers per train on average."
Changes to the off-peak service will result in less frequent, more crowded buses outside rush
hour, when many transit users travel with strollers and groceries and need more space. Cuts to
off-peak service will affect shift workers, women, and low-income and racialized riders the most,
who travel more outside of rush hour. According to TTC data published in July 2022, these
riders typically “make longer bus trips to destinations spread out across the city and women
often trip-chain, making multiple stops during their trip.” [9]
b. The 2023 Operating Budget lacks data and evidence to support proposed cuts, and lacks information about how they will impact residents
Which routes and service periods are being affected by service reductions, and based on what
ridership data and equity considerations? The only specific detail provided about proposed
service levels is that subway service will run at 6-minutes-or-better during "most periods" and up
to 10-minutes-or-better. There is no guarantee that the TTC 10-Minute Network will be
protected.
c. Ridership is growing, but the 2023 budget proposes service cuts
Overall, ridership has grown by 46% since last November to November of 2022, [10] yet this
budget proposes cutting service by 5% compared to last year, and by 9% compared to
pre-pandemic levels. The 2023 TTC Operating Budget also notes that rush hour ridership is not
coming back as fast as other periods because many office workers are still working from home.
Proposed TTC Service Cuts - 2023 Operating Budget
| Proposed % of pre-pandemic service levels | Proposed % change from pre-pandemic levels | |
| Streetcar | 94% | -6% |
| Bus | 87% | -13% |
| Rapid Transit (including subways) | 75% | -25% |
| Overall TTC Service | 91% |
-9% |
d. Small service investments in Neighbourhood Improvement Areas will not protect all low-income neighbourhoods or residents from service cuts
The TTC Budget notes that a minor amount of service ($0.7 million, or 240 weekly service
hours) is being invested in “routes with a high proportion of boardings at stops serving
Neighbourhood Improvement Areas.” Yet research by John Stapleton, Yvonne Yuan, and
Richard Maaranen shows that some of Toronto’s poorest neighbourhood are left out of
“Neighbourhood Improvement Areas,” particularly in northern Scarborough. [11]
3. Increase funding for the TTC from using new revenue tools, not fares
A fare increase is unfair and won’t replace the TTC’s $491.7 million outstanding shortfall in
2023. TTC data shows that shift workers, women, and low-income people are the three key groups of people who have been relying on transit throughout the pandemic. This fare increase
falls most heavily on them. A single TTC fare cost $1.80 in 2002. If TTC fares had been indexed
to inflation rates [12] over the past 20 years, riders would be paying $2.74 per ride in 2022.
The TTC faces long-term operating shortfalls. $16.1 million generated from an inequitable fare
increase is the wrong approach; new revenue tools and stable funding from provincial federal
governments is needed. The TTC faces a COVID-related budget shortfall of $366.4 million in
2023, and an outstanding 2022 budget shortfall of $125.3 million related to COVID-19 impacts.
The 2023 TTC & Wheel-Trans Operating Budget report affirms that: “The COVID experience
has clearly exposed the high dependency on the farebox as a key vulnerability that will
challenge the TTC’s ability to provide safe, reliable transit service and put at risk the critical role
it plays in the City and Region’s economic recovery, vitality and well-being.”
4. Invest in evidence-based safety measures to create a welcoming TTC, not over-policing
No evidence has been presented that spending $2.4 million to hire more special constables will
reduce violence on the TTC. But the TTC does have evidence that Black and Indigenous people
have been grossly overrepresented in TTC enforcement incidents. [13] TTCriders is calling for more supportive staff presence on the TTC, including those trained in crisis intervention, who
are able to de-escalate crisis situations and provide wayfinding and accessibility service.
Creating a welcoming, accessible TTC won’t be achieved by expanding policing. There is safety
in numbers. Winning transit users back with better service and lower fares must be a top priority
for the TTC. Cuts will only drive more riders away.
Sincerely,
Shelagh Pizey-Allen
Executive Director, TTCRiders
References
[1] 2023 TTC & Wheel-Trans Operating Budget:
https://ttc-cdn.azureedge.net/-/media/Project/TTC/DevProto/Documents/Home/Public-Meetings/Board/20
23/January-9/1_2023_TTC_Conventional_and_Wheel_Trans_Operating_Budgets.pdf?rev=1d65ed14183
74527b7479584a9a06445&hash=FB374C8ACB097C89E89B3409A45154B6
[2] https://www.toronto.ca/legdocs/mmis/2020/ec/bgrd/backgroundfile-157895.pdf
[3] https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-166970.pdf
[4] 2016 City of Toronto Fair Pass report:
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-98467.pdf
[5] Market Based Measure: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110006601
[6] LIM: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023201
[7] https://www.toronto.ca/legdocs/mmis/2022/bu/bgrd/backgroundfile-174762.pdf
[8] TTC Service Stanards:
https://ttc-cdn.azureedge.net/-/media/Project/TTC/DevProto/Documents/Home/About-the-TTC/P
rojects-Landing-Page/Transit-Planning/TTC_Service_Standards.pdf
[9] July 2022 TTC report:
https://ttc-cdn.azureedge.net/-/media/Project/TTC/DevProto/Documents/Home/Public-Meetings/Board/20
22/July-14/7_Advancing_the_5_Year_Service_Plan_2024_2028_and_10_Year_Outlook_Reset.pdf
[10] November 2022 TTC CEO’s Report: https://ttc-cdn.azureedge.net/-/media/Project/TTC/DevProto/Documents/Home/Transparency-an
d-accountability/Reports/CEO-Reports/2022/CEO-Report---November-2022.pdf?rev=4393a37a
50fb4070bb176cdd8b26770e&hash=BC27CD9263D8DFC3A08861FB8204806A;
2021 TTC CEO’s Report: https://ttc-cdn.azureedge.net/-/media/Project/TTC/DevProto/Documents/Home/Public-Meetings/
Board/2021/November_29/1_Chief_Executive_Officers_Report_November_2021.pdf?rev=9c18
4a3d9fc64fe0b66304a052060710&hash=E965E470AFAA08E9FC84825C0FB7EC5F
[11] https://openpolicyontario.s3.amazonaws.com/uploads/2019/10/Double-or-Nothing_web-FINAL-R2.pdf
[12] https://www.bankofcanada.ca/rates/related/inflation-calculator/
