We’re used to
hearing about money troubles at the TTC, and now it seems that GO
Transit may have to cut back on its long anticipated expansion
plans. If the regional governments that pay a third of GO’s growth
costs can’t convince the province to allow for higher charges on new
homes, the regions won’t be able to come up with enough cash. The
rest of the expansion funding comes from federal and provincial
coffers.
Today
(Thursday) GO’s board will consider a scaled back budget proposal,
including buying “no new trains for the next two-three years,” as
well as delaying the opening of new stations and parking lot
expansions, and postponing additional train service to Brampton.
The regional
politicians who sit on the GO board say their governments can afford
these major transit improvements only if Queen’s Park permits them
to increase development charges included in the cost of new homes.
Durham Regional Chair Roger Anderson tells In Transit that “Durham
doesn’t have the kind of money that GO is looking for,” saying that
he and other municipal leaders have long been asking the Ontario
government to change the rules on raising funds for the
provincially-owned transit agency.
“If they’d done
what we as the GO board had asked them two or three or four years
ago … GO Transit would have another $300 million in their purse for
capital. They’ve missed out on an awful lot,” he says.
York Region
chair Bill Fisch says his municipality supports GO’s growth plan,
but as for the amounts that are needed to expand further, “we just
don’t have the money.” A new single family dwelling in York Region
may average $350,000, which includes a development charge of $30,000
to $40,000. Fisch says this amount pays for services required by new
residents such as libraries, community centres, roads, local buses,
water and sewer lines.
Housing
developers may oppose the idea of extra costs on the price of new
homes, but the cities and regions around greater Toronto insist this
is the only way to raise the necessary money. According to the GO
budget report, municipal “treasury representatives clearly advised
GO staff and the Provincial staff that municipal and regional
contributions for 2007/08 and beyond will cease and desist unless
issues relating to development charges for GO Transit discussed in
the last three years are resolved by fiscal year 2006/2007.”
Neither
provincial department involved with the matter offered a
breakthrough in the impasse yesterday. Responding to a query from In
Transit, the Ministry of Transportation reported, “The Province has
worked with municipalities in the past on development charges, and
will continue to do so, to address municipal concerns and
ensure GO
Transit funding is not compromised.”
Frances
Johnston, (manager with the municipal finance branch) of the
Ministry of Municipal Affairs and Housing, said “There is no
direction to proceed for a review of the Development Charges Act at
this time.”
Will this
dispute slow GO’s plans? Stay tuned.