PTIF Phase 2: The Lottery Win Is Not As Big As It Seems (Updated)

Updated March 16, 2018 at 5:15 pm: The Fire Ventillation Project which includes second exits from several stations was omitted from the list of major projects in the original version of this post. It has been added.

Updated March 16, 2018 at 3:25 pm: The Ontario Ministry of Infrastructure has clarified that the Ontario funding for the Scarborough Subway is separate from the $4 billion in matching dollars shown in the table below.

On March 14, 2018, the Federal and Provincial governments announced the scale of the second phase of the Public Transit Infrastructure Fund (PTIF) to be spent over the next decade. Some of the details are in a backgrounder.

Funding allocations for the Toronto area are summarized in the table below. The amounts are based on transit ridership, not on population, and so Toronto gets by far the largest share of the pie.

Source: Infrastructure Canada Backgrounder

If one believed the ecstatic response of politicians and some media, one might think that all our transit prayers have been answered.

Not quite.

An additional $9 billion is not exactly small change, but Toronto has a huge appetite for transit spending and a daunting project backlog. The new money will help, but with it comes the requirement that Toronto pony up about $3 billion for projects that are not in the city’s long-term budget.

Capital planning for many years understated the infrastructure deficit by hiding projects “below the line” outside of the budget, and even more by leaving important work off of the list completely. The infrastructure deficit is much larger than the TTC reports and city financial plans indicate.

That, in turn, affects the city’s financial planning, subject of a recent report from the City Manager. Despite assurances from city staff that all known TTC costs have been included in their projections, there is a long history of the TTC leaving significant projects out of funding lists to keep their total “ask” down to a politically acceptable number.

Much needed work is not the sexy, photo-op rich stuff of subway extensions, but the mundane business of buying new equipment to replace old cars and buses, and to increase system capacity.

The new plan is to run for ten years. The money will not all land in Toronto’s hands this year, but will be parceled out as projects are approved and actual spending occurs. There is no guarantee that a future government will stick to any commitments especially if the “funded” projects are not the subject of a binding agreement. Toronto has its share of cancelled projects including the Sheppard Subway, cut back to Don Mills, and the Eglinton West Subway (both victims of Mike Harris), not to mention Transit City and the pliable attitude of various governments to the worth of a subway in Scarborough.

Updated March 16, 2018 at 3:25 pm:

Before we even start into the possible projects to be funded, some money is lopped off the top based on a past commitment.

  • Ottawa will provide “up to $660 million for the Scarborough Subway extension project, pending submission and approval”.
  • It is unclear how much of the provincial commitment to the SSE of nearly $2 billion is included in the $4 billion under the new program.

This brings the available federal funding down to about $4.237 billion.

Whether the total available from Queen’s Park is $6 billion ($4b new plus $2b for the Scarborough Subway), we do no know. I have a question in to the Ontario Ministry of Infrastructure to clarify this. They have acknowledged the question, but have not replied as of 11:45 am, March 16.

Update: The Ministry of Infrastructure has clarified how the previous SSE funding fits with the newly announced program:

Ontario is committed to cost-matching federal funding for municipal projects at 33 percent. This equates to $4 billion from the province to match the City of Toronto’s $4.9 billion federal allocation. No previously committed funding for Toronto projects is included in this allocation.

Ontario’s commitment to match this new federal funding at a 33 per cent share is separate from and above the province’s previous commitment of $1.48 billion in 2010 to the Scarborough Subway. [Email from Alex Benac, Press Secretary to the Minister]

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