doesn't come anywhere close to the cost of infrastructure for streetcars.
No, the total budget doesn't make sense.
Political finance and power turnover, however, causes it to make perfect sense (to me at least).
Drivers are easy to reduce (see Miller's proposed and funded 2010 bus service versus what Ford's budget actually provided), and the capital budget is treated entirely separate from operations (Land Transfer Tax goes mostly to capital debt payments; Ford's policies prevent it from going toward ongoing operating expenses). If as a politician you want to have a lasting impact, you go the large capital expense route rather than the man-power route. PPP agreements are particularly favoured because they're damn hard to cancel; there is no evidence they save money, especially when you factor in the occasional cancellation like the Ontario gas plant debacle.
Miller's bus improvements were actually of roughly an equal or higher value as the downtown tram network improvements. Ford cut them (cancelled the garage, eliminated the jump-queue items, laid-off the drivers) but was unable to cut the downtown tram order due to 3rd party contracts being involved.
This certainly isn't just a City of Toronto thing, or even just a government thing as large companies do it too. Retiring CEO's have been known to commit the company to decade long contracts with 3rd party outsourced services to prevent the new CEO from changing the company too much.
It's a byproduct of `blame the last guy` and undo what they were doing. If you assume the next person will try to undo what you were doing, steps are taken to prevent it. The NDP has taken longer to pick this up than the Conservatives; Conservatives have become very good at locking in policy decisions for decades after they leave power (highway 407 century long lease rather than hiring a company to toll on their behalf or an ongoing revenue sharing agreement; much lower government revenue but the long-term policy lock-in was virtually guaranteed).
It's also why the province was looking at a transit specific tax and having Metrolinx borrow against that revenue stream. This helps locks in the revenue for the long-term where something coming out of general revenues can and probably will be rolled back by Hudak.