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For the Base Budget, the subway represents about $5 billion over ten years. This includes almost nothing for new lines (only a few small studies) and this cost is overwhelmingly just “to keep the lights on”. Note that this is separate from costs charged to the operating budget of day-to-day maintenance, costs that would remain with the City under an uploading scenario.
The list of additional items is missing one key piece: the construction of a new subway yard and carhouse at Kipling. The budget includes funding to buy the property (acquisition is already in progress), but not to build anything on it. This yard is essential to the fleet replacement on Line 2 which, in turn, is a pre-requisite to the opening of the Scarborough Subway with ATC signalling.
Leaving aside the add-ons, the Base Budget comes in at about $500 million/year for the subway including the currently unfunded portion. This would be partly offset by existing subsidies:
- Of the provincial gas tax allocation to Toronto, the City allocates about $70 million to capital projects. Taking the Base as being about 50% subway, then $35m of the provincial money might be held back.
- Similarly, the federal government gives Toronto about $160 million in gas tax annually, of which $80m could be viewed as “subway” dollars. Whether the Feds would look kindly on Queen’s Park scooping a “municipal” transit subsidy remains to be seen.
Between them, these two subsidies would reduce the annual upload to around $385 million, rather more than the $160 million the Tories cite. Moreover, the provincial component does not vanish, only the need to send money to the City as a capital subsidy. Ontario would still be on the hook for about $420 million per year.
PTIF is not much help here because the Phase 1 PTIF money is largely going to the bus fleet’s rejuvenation, and a lot of Phase 2 will probably go to the big construction projects, not capital maintenance.
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