TTC Approves 2017 Fare Increase, Punts Service Decision to Council

On November 21, the TTC Board approved the fare increase proposed by staff in their Operation Budget for 2017. Adult and Senior/Student token/ticket fares will rise by ten cents to $3.00 and $2.05 respectively. Metropasses for both fare classes will rise by $4.75 with the result that the “multiple” (the ratio between the pass price and the single token/ticket) for seniors/students drops slightly (by about 0.5) while for adults it is unchanged. Here is the full table of old and new fares.

ttcopex2017_fareincreasetencents

There was a long parade of deputants at the meeting who, despite a motion by Deputy Mayor Denzil Minnan-Wong to limit presentations to three minutes, mostly managed to push the envelope out to the normal five minutes simply by taking a rather long time to “wrap up” when Chair Josh Colle gave the three minute warning. Their comments overwhelmingly spoke to the effect of a fare increase, but also to the question of service quality. Despite the TTC’s claims that they are not limiting service growth and causing crowding, actual experience does not match these claims, a point echoed by Councillors who sit on the TTC Board and who receive many complaints about this from their constituents.

To soften the blow, the TTC Board voted to direct staff to prepare the 2018 budget on the basis of no fare increase so that, in effect, over a two year period fares would only have gone up five cents per year. This is a Catch-22 decision going into an election year because somehow Council will have to find the money to pay for the idea just when tax increases are regarded as political suicide, but service cuts would be equally unpalatable.

The most contentious part of the debate turned on Appendix C to the report which described various options for higher fares and lower service. Included on the list was the cost of free passes for the Blind and War Amps ($2.1 million), and even considering this shows a breathtaking insensitivity.

This was described by CEO Andy Byford as the “Armageddon Appendix” in an interview with CBC’s Metro Morning, an presents a menu of extremely unpleasant options to close the remaining gap between TTC’s planned revenue, including the fare increase, and projected costs. This amount has three components totaling $99 million:

  • A $35.1 million shortfall in the “conventional” system’s operating budget.
  • A $26.4 million shortfall in the WheelTrans operating budget.
  • A proposed transfer of $37.5 million from the TTC’s operating budget to the City’s capital budget. This scheme has not been endorsed by the City Manager, and is simply an accounting trick to bump the TTC subsidy without showing it as part of the annual increase. Either way, it would mean increased City spending whether as “operating expense” or “capital from current”.

Byford was at pains to emphasize that he would not recommend any of the changes, but produced the list because he was asked for it. What is missing, of course, is a sense of the effect of any of the changes at the individual level: how many riders benefit from which discounts, which services would be affected by changes to standards? It is easy for the budget hawks on Council to talk about “efficiencies” when they are single-line descriptions, a dollar amount, but with no specifics about what would happen.

For their part, members of the TTC Board seemed unable to grasp the difference between sending an unbalanced budget to Council without recommendations on how to fix it, as opposed to taking a strong stand saying “we oppose these cuts”. This evolved as the meeting wore on with some recognition of the need to take a stand, but this did not find its way into the final motions (see below).

The Board may have punted the issue over to Council, but nothing prevents Council from saying “TTC, you are only getting this much subsidy, you figure out how to deal with it”. Even a desire to save service improvements implemented at Mayor Tory’s behest will require someone to decide either on new revenues to fund transit, or on which of these improvements will die on the altar of “efficiency” and “saving taxpayer dollars”.

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