The real problem with the TTC is not the growth in the trips (2013 to 2015 it grew by 10%) but the revenue passengers (2013 to 2015 it grew by 2%). Basically we paid for the same number fares but took 250,000 trips more per day over just a 2 year period.
https://www.ttc.ca/About_the_TTC/Operating_Statistics/2015/Section_One.jsp
We are using way too many transfers and it's all for free. And even worse the majority of these additional trips were on buses (not the subway) which are the most expensive trips.
Presto can help here. Why don't we charge $0.25 per transfer? Covers the cost of using Presto, discourage 1 stop rides to the subway where there are capacity constraints, etc. Metropass is NOT excluded. They pay a nominal $0.25 per transfer as well
1 million per day of transfers. x 365 x $0.25 = $91M. Covers the added cost of the 2 hour transfer option. And reduces next year's increase in fees.
(and for the record I would have to pay an extra $0.50 per day...one to and one from work)