Cutting Costs (02/16/06)
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 With a fare hike slated to take effect in April, some TTC riders and observers are taking the opportunity to ask how well the public agency uses its budget. Of the many organizations funded by the City of Toronto, it’s the Police Service and the TTC that take up the lion’s share of tax dollars.

 Although the commission is directly overseen by a board of city councillors, transit staff must also explain their finances to  city’s budget committee. Don Valley East councillor Shelley Carroll is one of the politicians who has looked closely at TTC finances leading up to the recent fare increase decision. To read her views, you can link to her blog via www.toronto.ca -- look under “Councillors”.

 She tells In Transit that the city has been under a lot of pressure to control costs, and along with the police the TTC came under a lot of scrutiny, especially because they were “asking for the biggest increases”. She adds, “In both cases, we’re still giving them a 7.7 percent increase over their budget (of) the previous year. The goal for every agency, board and commission this year was two percent.”

 Ms. Carroll acknowledges that the TTC’s needs have jumped dramatically. The transit agency is experiencing higher ridership, wage costs and especially increased fuel charges. Ultimately it is the councillors who sit on the transit board that must approve fare hikes and financial cuts, and Carroll expressed concern that money-saving proposals from the budget committee were not acted upon.

 She says councillors on her committee went over the records line by line , and TTC staff patiently answered thousands of questions. “But in the last couple of years in scrutinizing the budget, and knowing that we have these horrible budget pressures -- and really so do they (the TTC) -- we’ve suggested these are places that we think you should reduce. The difficulty is that we can only suggest those things and ask that the commission do it.”

 The TTC’s Vince Rodo also attended the dozens of budget meetings. As general manager, he oversees the finance department and is responsible for explaining the transit agency’s books to the city. He and other officials responded to councillor queries on the spot or looked into the implications to return with answers. Of the many proposals for cost savings, he says “Some of those things ... we agree completely with, and some things we explain as best we can -- why it will either work or not work.”

 He says “Every question that the budget committee asked, we answered. Every suggestion they had, we responded to. Some we acted on, some we don't think are in the best interest of running the transit. We had a lot, a lot, of budget meetings, and from my perspective we responded to the questions that were put to us.”

 Councillor Carroll maintains that there are parts of the organization that aren’t scrutinized enough for efficiencies. Coming up, should the TTC operate more like a business, and how well does it respond to suggestions for cost savings?

© Ed Drass 2008