Day: January 8, 2025

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TTC 2025 Capital Budget and Plan – Preliminary Review

This is the second article in my review of the TTC’s 2025 budget package to be discussed by their Board on January 10, 2025. The Operating Budget is covered in the first part.

The Capital Budget and Plan exists in various forms:

  • A one-year budget for the current year.
  • A 10-year plan corresponding to the City’s financial planning horizon. In past years this tended to contain only approved projects for which funding was certain, but now some projects are only funded in early years.
  • A 15-year plan takes a longer view and includes many projects that have not reached the approval stage. The intent is to give the City and other funding partners a heads up on the longer term needs for transit funding.

Separately there is a Real Estate Investment Plan. This was created a few years ago in response to project delays caused by the time needed to acquire property before works could go ahead. In some cases, this gives early warning of items that have not even shown up in the 15-year plan. I will address the Real Estate Plan in the third article in this series.

When the 15-year plan was first unveiled, it shocked City financial staff, Council and the TTC Board with its scale then roughly three times the 10-year plan. Over the years projects would pop up from the TTC with little warning because they did not appear on official lists until they were approved. (Only a few enjoyed special status of “below the line” as placeholders in anticipation that someone would pay for them when the time came.) Now everything was on the table, but with no sense of priorities beyond broad areas such as “state of good repair”

The three budgets/plans have grown substantially over the years, as has the City’s expected share of the cost thanks to Provincial and Federal governments backing away from what once was an assumed one third contribution to whatever the TTC proposed. Today, funding from these governments is a mix of ad-hoc allocations to specific projects and some dedicated yearly funding, albeit nowhere near enough to cover what is proposed.

The charts below show the 1-year, 10-year and 15-year versions of the plan broadly subdivided by category and portfolio (groups of projects generally related to one part of the network such as the subway). Note that the 10-year plan is roughly ten times the cost of the 1-year budget, but the 15-year plan is over three time the 10-year plan. This implies a massive jump in spending, and it is hard to believe that scale of change will occur.

The 2025-2039 plan is up by $5.4 billion over the corresponding 2024-2038 plan, or 11.4%. The unfunded amount is almost the same ($37.0 billion in 2025 vs $35.5 in 2024) because of new money freed up by provincial assumption of major highways from the City.

The main additions are listed below (Budget report at p. 42):

  • An accelerated rate of SOGR for critical infrastructure such as subway pumps, escalators, elevators, and other aging assets (Subway/SOGR) – $0.9 billion
  • An accelerated rate of surface track replacement (Streetcar/SOGR) – $0.5 billion
  • Addition of Net Zero requirements for facilities (Facility/SI) – $1.5 billion
  • Vehicles and infrastructure required for TransformTO service enhancements for streetcars and refined estimate for bus service (TransformTO/Growth) – $1.1 billion
  • Procurement of additional subway cars to support future growth and service maturity (Subway/Growth) – $0.7 billion

There are large projects in the later years of the plan contributing to the high cost beyond year ten. Some of these are described as “aspirational” which is a polite way of saying they are unlikely to materialize. However, the political problem remains that the big number, $53 billion, gets the attention and would-be funders cough on the size. Prioritization is an obvious requirement, but that has political challenges.

Note that these budgets do not include the large provincial projects such as the Eglinton and Finch LRT lines; the Ontario, Scarborough and Yonge North subway lines; nor the GO Transit expansion including the SmartTrack stations Toronto will pay for. Those are in the Metrolinx budget, not TTC.

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