Karen Stintz and Rob Ford’s TTC problem: there are too many riders

[M II A II R II K]

Karen Stintz and Rob Ford’s TTC problem: there are too many riders


December 6th, 2011

Read More: http://fordfortoronto.mattelliott.ca/2011/12/06/too-much-ridership/


In 2002, the average Toronto resident paid $128.71 on their property tax bill to support TTC operations. In terms of net funding, transit came sixth, lagging behind Police, Housing, Fire, Debt Charges & Social Services. Per capita, transit’s level of financial support was barely above Transportation Services — the department responsible for building roads and maintaining highways. Annual ridership that year was 415 million, down four million from the year before. By 2011, that same average Toronto resident was now paying $337.95 to support transit. The TTC had transformed into a top priority, now following only the police as the largest recipient of net municipal spending. Ridership this year is estimated at 497 million. The TTC has added almost 100 million annual riders over the last decade.

This wasn’t accidental, nor is it an example of out-of-control spending. In 2003, the TTC launched a Ridership Growth Strategy, which was approved by council in 2004. (Voting against: Mike Del Grande, Doug Holyday, Norm Kelly, Giorgio Mammoliti & David Shiner. Rob Ford was absent for the vote.) Representing the first major public investment in transit since the 1980s, the strategy — even if never completely implemented — has seen ridership grow to levels never before seen in Toronto’s history. More notably, this ridership growth proved resilient even in the face of a weakening job market. What the RGS was successful in doing was creating a climate where more people relied on transit as a primary means of getting around the city. Last year’s TTC budget report described this phenomenon.

Over the long-term, changes in City of Toronto employment levels have tracked quite closely to to TTC ridership changes … However, starting in 2009, City of Toronto employment starting to drop but ridership continued to grow. Only in recent months (January 2011) have employment levels reflected growth over the same period in 2009. Favourable weather conditions last winter and economic uncertainty for riders have undoubtedly contributed to these strong ridership results. The large service improvements implemented in late 2008 have also prompted the growth as the service on the street more closely matches the service hours of the subway, giving riders far more choice in transit options.

.....



TTC Operating Budget vs. Ridership: http://fordfortoronto.mattelliott.ca/wp-content/uploads/2011/12/TTC-ridership-budget.jpg

 

[rbt]

If this is a serious problem then raise fares by enough to hold ridership at the existing level and do not reduce service. Perhaps this is a 50 cent fare hike (ridership increase still occurred last time fares went up 25 cents).

I don't have any issues with eliminating direct operating subsidy of the TTC (fund $150M to a separate organization to subsidize fares for low income groups) and shove the remaining $250M per year into capital. That would be more than enough to buy buses, bus storage yards, LRT yard, and a number of other things TTC is short capital funding for while allowing ridership to grow.




Incidentally, the number of property-tax dollars going into road maintenance (and related items like police/ambulance/fire) has never been higher either.

 

[M II A II R II K]

But there are also too many drivers.....

 

[W. K. Lis]

If this is a serious problem then raise fares by enough to hold ridership at the existing level and do not reduce service. Perhaps this is a 50 cent fare hike (ridership increase still occurred last time fares went up 25 cents).

I don't have any issues with eliminating direct operating subsidy of the TTC (fund $150M to a separate organization to subsidize fares for low income groups) and shove the remaining $250M per year into capital. That would be more than enough to buy buses, bus storage yards, LRT yard, and a number of other things TTC is short capital funding for while allowing ridership to grow.




Incidentally, the number of property-tax dollars going into road maintenance (and related items like police/ambulance/fire) has never been higher either.

Except that Montréal, New York, Mississauga, and other large cities in North America are subsidized to a greater percentage that Toronto. Toronto has the least subsidized public transit systems (TTC and GO) in North America. The problem is that Ontario and Canada subsidize zero towards the operating budget.

 

[ssiguy2]

Ontario and Ottawa both contribute to the TTC operating budget.

 

[W. K. Lis]

Ontario and Ottawa both contribute to the TTC operating budget.

Contribute to the capital budget (IE. Crosstown LRT), which is different from the operating budget. Gasoline taxes do not go directly to the TTC.

 

[gweed123]

The City should toll roads, and then have 50% of that money go to the Transportation Services capital and operational budgets (roads), and 50% go to the TTC capital and operational budgets.

This way, we can make the claim that tolls are helping pay for better roads, and then take some of that money and spend it on transit.

 

[Amy Rose]

The City should toll roads, and then have 50% of that money go to the Transportation Services capital and operational budgets (roads), and 50% go to the TTC capital and operational budgets.

This way, we can make the claim that tolls are helping pay for better roads, and then take some of that money and spend it on transit.

Maybe if a mayor with atleast 3/4 of a brain gets voted in, but for now, "Respect for taxpayers" may unite

 

[doady]

Contribute to the capital budget (IE. Crosstown LRT), which is different from the operating budget. Gasoline taxes do not go directly to the TTC.

The Ontario Gas Tax funding for municipalities is based 70% on ridership, and it was meant for funding transit operations. TTC uses most of its share on operation costs (around $110 million).

The recent service cuts to the TTC are pretty misguided considering the gas tax funding is based on ridership. In the end, it will just mean even mroe difficulty funding the TTC.

 

[Tewder]

Maybe if a mayor with atleast 3/4 of a brain gets voted in, but for now, "Respect for taxpayers" may unite

I just don't see how gridlock, pollution, an increased cost to the economy, and a diminishing quality of life can constitute 'respect' for anyone, taxpayers or otherwise? Sh*T, we all take in the same air!

 

[W. K. Lis]

The Ontario Gas Tax funding for municipalities is based 70% on ridership, and it was meant for funding transit operations. TTC uses most of its share on operation costs (around $110 million).

The recent service cuts to the TTC are pretty misguided considering the gas tax funding is based on ridership. In the end, it will just mean even mroe difficulty funding the TTC.

I copied and pasted this from stevmunro.ca:

Is the gas tax that goes to the city part of the city’s subsidy to the TTC, or does it come directly from the province? Does that even show up as a provincial subsidy or is it hidden as being the city’s generosity?

I also noticed that the TTC has to pay taxes and licenses, is that paid to the province? What other fees or taxes does the TTC have to pay to other governments?

Steve: The province gives the city roughly $160m in gas tax revenue. This was originally supposed to be all for capital, but the city directs about $90m to the TTC’s operating subsidy with the rest going to capital. For some reason (usually related to whatever argument is being made, and by whom), this provincial contribution is mentioned or omitted as it suits the speaker. Having said that, the province gave the TTC more in operating subsidy 20 years ago than the $90m they get today. Out of a $1.5-billion budget, $90, does not go very far. A contribution on a comparable level to the old formula would be $250m.

Toronto also gets $150m from federal gas tax, and all of this goes to capital.

The correct breakdown shows up in the TTC’s annual financial statements where the various sources of revenue are detailed in the footnotes.

Yes, the TTC pays taxes and licences to both the city and to Queen’s Park. On the HST, there is a partial rebate, but this affects the capital side more than operations where labour is the biggest component of costs.

 

[Chuck]

I just don't understand why the standard 10% reduction in the annual budget had to apply to departments which saw increased patronage, such as the TTC - especially when more riders require more service. If the TTC was to decrease the ratio of budget to ridership by 10%, fine. But because ridership is up, the TTC actually took a hit slightly larger than 10%.

In my opinion, it would be reasonable that if riidership rose about 15M last year (3%), it would be perfectly reasonable for the subsidy to increase by 3%, but not a penny more. Or, just maintain it at last year's rate to improve efficiency.

 

[ibhattac]

I just don't understand why the standard 10% reduction in the annual budget had to apply to departments which saw increased patronage, such as the TTC - especially when more riders require more service.

Why? Gravy is a base 10 value. I wish it were a base 2 value.

 

[EnviroTO]

As crime drops and transit ridership goes up, the police must get more and transit get less. This is obvious. Straight out of the common sense revolution.

 

[doady]

I copied and pasted this from stevmunro.ca:

Steve Munro is wrong. When the provincial gas tax was introduced, the province had separate funding for capital costs (more specifically for the replacement of transit vehicles, 33% subsidy, which they eventually eliminated). And of course, the province still contributes 33% to the capital costs of projects (or 100% subsidy in the case of the Eglinton LRT). The provincial gas tax was meant for operation: maintaining service and expansion. I know Mississauga uses all of its provincial gas tax on service. That's why the formula is based 70% of ridership: to prevent cuts in transit service like what the Rob Ford and his lackeys are doing now.

Btw, it's a friggin' shame that NDP are pushing for $250M worth of tax cuts on energy costs instead of $250M in transit funding (and based on ridership, Toronto would get $150 million). Of course, that does not at all excuse the massive service cuts now. But still, such a shame.