TTC Operating Budget 2011 (Update 3)

This article provides additional details on the TTC’s 2011 Operating Budget including information in a presentation given at the January 12 meeting, but not available online.

Updated January 17, 2011 at 2:30 pm:

A table listing cost recoveries for Canadian transit systems has been added at the end of this article.

Updated January 15, 2011 at 10:30 am:

On January 14, the TTC made its presentation to the City’s Budget Committee.  The linked document covers all three budgets: operating, Wheel Trans and capital.

The budget information is reformatted into the standard layout for City departments and agencies starting at page 26.  A projection through 2012-13 on page 30 shows the estimated growth in revenue, expenses and subsidy requirements, and the effect of a fare freeze on total cost recovery.  (Note that the projections do not include the effect of cancelling the proposed 2011 fare increase.)

Much supporting detail that was included in the TTC’s own budget presentation on January 12 is not in this document.  The detailed presentation is still not available online.

I will comment on the Capital Budget in a separate article.

Updated January 14, 2011 at 9:45 am:

Information has been added to the “Cuts & Additions” section regarding the annual savings from proposed cuts and their value expressed on a per vehicle hour and per passenger basis.

[Original post from January 13 below]

Revenue/Cost Ratio

The TTC’s revenue/cost ratio continues to run well above that of other cities and for 2011 will be about 70%.  Farebox revenue for 2011 is budgeted to rise by about $53.5-million relative to the 2010 budget which underestimated ridership.  Actual farebox revenue for 2010 is expected to be $40m above budget and, therefore, almost 80% of the jump for 2011 is attributable to strong ridership in 2010.

Advertising revenue for 2011 is expected to rise from $15m in 2010 to $20m in 2011 as a direct result of the improving economy and stronger demand for ad space on transit vehicles.  This is an example of a revenue stream where the ebb and flow of income has a non-trivial effect on fare and subsidy debates, although it is rarely mentioned.

With a projected farebox revenue of $941.5m and expenses of $1,429.1m, the farebox will account for 65.88% of total expenses.  Other non-subsidy revenues will bring in $58.7m or 4.11% of the total.  The remaining 30.01% will come from city-funded operating subsidy.

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