In his continuing program of bribing the electorate with promises that the City cannot afford, Mayor Tory has asked the TTC to bring forth a 2018 operating budget containing no fare increase. This would come, of course, just in time for his re-election campaign where Tory could brag about all the transit wonders he has bestowed on our fair city.
Fare freezes are simplistic approaches to a “transit policy” not unlike fantasy subway maps and promises that tax increases will be held at no more than inflation. Can’t fit it all into the budget? There must be efficiencies, cost cutting that will solve problems, because as we all know public agencies like the TTC are rife with fat just waiting to be trimmed. That’s a great story, and it plays to the wing of Council whose only concern is to be re-elected for keeping taxes down.
The reality is not quite what it is made out to be.
TTC faces a shortfall in its budget for 2018 thanks to increasing costs and expansion of its subway service. The degree of this shortfall has probably been understated. There is no provision for improved service (net of the subway extension) because ridership is expected to remain fairly static. The cost increases cannot be wished away with an appeal to make the TTC more “efficient” both because of their scale, and the many cuts that have been made in recent years responding to subsidy constraints.
Several projects-in-progress are expected to bring efficiency savings to the TTC in future years, but not in 2018. Moreover, some “savings” are really an ability to do a better job with existing resources, not to cut costs.
“Fare equity” means different things to different people, and can be argued from viewpoints that trigger quite different outcomes.
“Poverty reduction” is a key strategy for City Council, but much more as a talking point than a real, financial commitment. TTC fares are part of this strategy, but there is a danger this will get lumped into overall transit costs rather then be recognized as a need for dedicated, separate funding in the City budget.
The inherent economic value of simply having good transit service at an acceptable price rarely enters the discussion even though billions in tax revenue and development opportunities hinge on transit’s existence.
Policy discussions consistently avoid complex issues regarding fare discounts and service quality, and there is little understanding of the menu of options available should Toronto and the TTC choose to pursue them. As in so many past years, the TTC enters its budget cycle in crisis mode – how will we find all the money – having studiously avoided the details of its budget and of revenue options.
Perish the thought that the TTC might actually suggest or even advocate for new fare and service policies without first getting the Mayor’s blessing and staging a press conference to announce his decision.