Ansem
Banned
http://thestar.ca/news/gta/article/699522
Paul Moloney
Tess Kalinowski
Staff Reporters
The TTC's success has helped create a $17.4 million deficit, a shortfall that could erode potential savings from the civic workers' strike.
Ridership is running at a record high, projected to hit 473 million rides this year, without even a recessionary dent. But revenue per passenger is lower because more people are buying cheaper, transferable Metropasses – at a loss to the fare box of about 3 cents a ride. Sales of discount senior and student fares are up as well.
Savings from the civic workers' strike may be used to offset the TTC shortfall. Preliminary figures presented to the budget committee yesterday show the 39-day summer walkout saved the city at least $20 million.
However, that number doesn't reflect costs or savings from the waste and water departments. The final tally will be presented to the executive committee on Oct. 2.
That tab will factor in additional strike costs, including extra security, legal fees for hiring outside lawyers and costs of trucking more garbage to landfill.
During the strike, it was suggested the savings could be used to lower the property tax increase for 2010.
That's looking less likely, given the $17.4 million shortfall the TTC faces by the end of the year. That amount includes a $2.3 million loss in advertising revenues.
The TTC had budgeted for $904 million in total revenue for the year. The shortfall will be discussed at tomorrow's commission meeting.
"They're saying you saved $20 million from the strike, but you throw in this other stuff and it kind of washes out, more or less," said Councillor Paul Ainslie, vice-chair of council's budget committee.
The TTC is being asked to cut back on spending immediately, by curtailing overtime, trimming discretionary spending and reviewing hiring needs. Officials say there are no plans to cut service, and Mayor David Miller has pledged not to raise fares in 2009, to spare people struggling with the recession.
The success of the Metropass stems from the fact it's cheaper than tokens, is transferable and can be purchased with Air Miles. Using it also makes it possible to get a federal tax credit, said Michael Roschlau, president of the Canadian Urban Transit Association. "That (revenue drop) could be the case where you're having a migration of people moving off of cash or tokens onto Metropasses, and taking more rides at a lower cost per ride."
Councillor Joe Mihevc, who reviews TTC budgets as part of the budget committee, confirmed that riders are now paying a lower average fare. The TTC has been taking in an average of $1.77 per trip. It had expected about $1.80. The loss of just 3 cents a ride makes a difference over millions of rides.
Paul Moloney
Tess Kalinowski
Staff Reporters
The TTC's success has helped create a $17.4 million deficit, a shortfall that could erode potential savings from the civic workers' strike.
Ridership is running at a record high, projected to hit 473 million rides this year, without even a recessionary dent. But revenue per passenger is lower because more people are buying cheaper, transferable Metropasses – at a loss to the fare box of about 3 cents a ride. Sales of discount senior and student fares are up as well.
Savings from the civic workers' strike may be used to offset the TTC shortfall. Preliminary figures presented to the budget committee yesterday show the 39-day summer walkout saved the city at least $20 million.
However, that number doesn't reflect costs or savings from the waste and water departments. The final tally will be presented to the executive committee on Oct. 2.
That tab will factor in additional strike costs, including extra security, legal fees for hiring outside lawyers and costs of trucking more garbage to landfill.
During the strike, it was suggested the savings could be used to lower the property tax increase for 2010.
That's looking less likely, given the $17.4 million shortfall the TTC faces by the end of the year. That amount includes a $2.3 million loss in advertising revenues.
The TTC had budgeted for $904 million in total revenue for the year. The shortfall will be discussed at tomorrow's commission meeting.
"They're saying you saved $20 million from the strike, but you throw in this other stuff and it kind of washes out, more or less," said Councillor Paul Ainslie, vice-chair of council's budget committee.
The TTC is being asked to cut back on spending immediately, by curtailing overtime, trimming discretionary spending and reviewing hiring needs. Officials say there are no plans to cut service, and Mayor David Miller has pledged not to raise fares in 2009, to spare people struggling with the recession.
The success of the Metropass stems from the fact it's cheaper than tokens, is transferable and can be purchased with Air Miles. Using it also makes it possible to get a federal tax credit, said Michael Roschlau, president of the Canadian Urban Transit Association. "That (revenue drop) could be the case where you're having a migration of people moving off of cash or tokens onto Metropasses, and taking more rides at a lower cost per ride."
Councillor Joe Mihevc, who reviews TTC budgets as part of the budget committee, confirmed that riders are now paying a lower average fare. The TTC has been taking in an average of $1.77 per trip. It had expected about $1.80. The loss of just 3 cents a ride makes a difference over millions of rides.