Transit discount is three years late and not deep enough

FOR IMMEDIATE RELEASE 

Transit group calls for immediate funding of deeper discounts 

March 31, 2022 (Toronto, ON) — Transit rider organization TTCriders welcomed the news that the Fair Pass discount is being rolled out today to people living in Rent-Geared-to-Income subsidized housing, but pointed out the discount was meant to be rolled out in March 2019 and is not deep enough. 

“A small discount is better than no discount, but it’s three years overdue and should be more affordable and available to everyone receiving housing supports. Essential workers and low-income Toronto residents have been impacted most by the pandemic, but have been left waiting another year for fare relief,” said TTCriders director Shelagh Pizey-Allen. “City Council must move quicker to expand affordable fares.” 

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 for all low-income residents. City Council voted to "proceed with the implementation of the next phase of the Fair Pass program as quickly as possible" in February 2022, but did not include funding in the 2022 City Budget.   

The TTC Board will vote in May 2022 on a 5-Year Fare Plan, but advocates say that without additional funding the agency will be limited in what it can approve. The TTC has proposed implementing "fare capping," for example, but not lowering the cost of a monthly pass.

"The TTC’s modelling shows that reducing fares for more people will increase ridership," said Pizey-Allen. "Fare capping is a positive step because when you can't afford the huge up-front cost of a monthly pass at the same time rent is due, you can actually end up paying more than the price of a monthly pass if you take the TTC every day. But fare capping won't help much if the TTC doesn't also reduce the number of taps to "break even" on the cost of a monthly pass. Right now you have to take 49 trips to break even on the cost of an monthly adult pass, or 57 trips if you are a Fair Pass user."

Background information about the Fair Pass program and 5-Year Fare Plan: 

  • The Fair Pass program discounts single fares to $2.10 and monthly passes to $123.25 onto a programmed PRESTO card. The Fair Pass has now been implemented for people who receive Ontario Works (OW), Ontario Disability Support Program (ODSP), Child Care Fee Subsidy, and people living in Rent-Geared-to-Income housing. 
  • City Council approved funding for the Fair Pass to be expanded to people in Rent-Geared-to-Income housing in the 2021 City Budget, but it took a year to implement. 
  • TTCriders and anti-poverty advocates have raised concerns about barriers to applying to and using the Fair Pass, especially for people living in suburban neighbourhoods without easy access to loading PRESTO. 
  • The second phase of the Fair Pass for those receiving housing supports or child care fee subsidies was meant to be implemented in March 2019, according to the initial Fair Pass plan adopted by City Council in 2016 and did not restrict "housing supports" to RGI housing only (other housing supports provided by the City include the Housing Allowance program and Rent Bank loans or grants).
  • The final phase of the Fair Pass was meant to be implemented in March 2020. The final phase will extend the discount to people earning the Low Income Measure plus 15%, or approximately $28,925 for a single person (2019 LIM figures).  
  • Updated cost estimates of expanding the Fair Pass to all 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.
  • 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.
  • City Council voted to "proceed with the implementation of the next phase of the Fair Pass program as quickly as possible" on February 17, 2022 but did not include funding in the 2022 City Budget. 
  • The TTC's 5-Year Fare Plan recommends adopting "fare capping" in principle. The TTC Board will vote on a final fare plan on May 19, 2022.

 


Contact:
Shelagh Pizey-Allen
(416) 309-9026

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