TTC Money Tangle (10/26/04)
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Take a deep breath, because the wrangling over the TTC is going to continue for quite some time. Ever since the early 1990s, Canada's largest transit system has been having a harder and harder time making ends meet. As successive provincial governments tried to deal with the huge financial needs of the health and education systems, transit went from a lowered priority to an afterthought.

Yet during the 1990s, an aging subway system began to need major repair work, and more and more of the TTC's massive fleet of buses, streetcars and subway trains neared retirement age. Increasing costs ran head on into decreasing political importance, and Toronto's transit system suffered. A fatal crash due to worn out infrastructure was only one low point in a decade of service cuts and repeated fair hikes.

Enter the provincial Liberals under Dalton McGuinty. A year into their mandate they have shown that transit will get a lot more attention, if not money. The huge needs of health and education are still the priority, but the provincial Liberals deserve credit for turning the corner on transit funding. Finally, the TTC and other systems across Ontario can be assured of steady funding from the gas tax.

The catch? Even though the federal government of prime minister Paul Martin is due to phase in its own portion of the gas tax, the combined amount is dwarfed by the backlog of delayed expenditures. There is a long list of transit projects and repairs that should have been done years ago. Although the TTC's tunnels and tracks are gradually being returned to a state of decent repair, they aren't getting any younger. Many of the vehicles in the streets as well as underground are due for replacement, and the price tag is hefty.

These repairs and replacements will reach $600 million a year by 2007. The combined federal-provincial gas tax money will take several years to build up, and won't crack $200 million a year. Returning to a predictable yearly supply of funds is one thing, but reaching the levels of the 1980s seems beyond the scope of our legislators.

Have you noticed that I haven't mentioned new service? Even if we were able to secure the cash for maintaining the system as it is, there is no leftover money to pay for extra vehicles, new subway or streetcar lines or the technology to improve the service we have. Even more challenging is the fact that the new gas tax money is tangled up in disagreements about funding for GO Transit and daily operating costs for the TTC.

Over the last few days, Toronto city council and Queens' Park have been bickering over the details of the new funding, even though the amounts are small compared to the looming cash crunch at the TTC. The immediate problem for riders is that the misunderstandings between the city and the province could translate into fare hikes or service cuts in early 2005. Provided this conflict is sorted out, all parties will still need to sit down and assess if all the promised money comes close to covering the needs of the TTC.

There is a similar disconnect over at GO Transit - the list of repairs, replacements and expansions far outstrips all forms of funding. The difficulty is not going away, but Toronto is not alone. New York City and London, England are just two major cities around having major difficulties in supporting their transit systems. With urban growth fueling greater traffic congestion worldwide, a lot of people -- and not just politicians -- had better get thinking about solutions.

Send e-mail to transit@eddrass.com. Include address and phone number.

© Ed Drass 2008