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Surprise ridership increase strains TTC's wallet
JEFF GRAY
June 14, 2007
Fast-growing ridership on the city's buses, streetcars and subways is part of the reason the Toronto Transit Commission may need to add as much as $100-million to its budget next year, TTC chairman Adam Giambrone says.
With TTC ridership growing at close to 4 per cent - almost twice the rate the TTC projected - the transit agency says its system is overcrowded and needs to put more buses and drivers on the road to cope.
"There's no question that we're going to have challenges, in terms of budget, when we're doing well. But it's a remarkable challenge to have," Mr. Giambrone told a meeting of TTC commissioners yesterday.
The TTC is now expected to at least come close this year to smashing its all-time record of 462.5 million rides, which was set in 1989, before a recession and a decade of government cutbacks and fare increases saw ridership spiral downward. In 2008, if riders keep cramming into the system, the TTC could carry as many as 476 million, officials predict.
But for every new rider the TTC gains, it needs more in government subsidies, since it covers only 75 per cent of its expenses with fares - which is still a high rate compared to most other transit agencies.
Much of the ridership bulge has come as a result of changes made to the TTC's monthly Metropasses, which can now be used by multiple passengers, although not at the same time.
This has actually created a problem for the TTC. Sales of the passes have soared 13 per cent, but riders are using them more often, meaning the TTC is taking in less revenue than expected.
Other factors causing the boom in riders include a humming economy, improvements to service outside rush hours, and the federal government's tax credit for transit passes, TTC officials say.
TTC staff asked the nine city councillors that oversee the commission to approve another 1,900 hours of service a week starting in November, or the equivalent of another 54 bus drivers, over and above the new service the TTC is already planning to add this fall as scores of newly purchased buses arrive.
That will cost an extra $6.7-million when spread out over a year. Even more new service will have to be added in 2008 to keep up as growth continues, Mr. Giambrone says.
This expansion will come on top of plans to beef up bus service, restoring some routes cut in 1996 and running more buses late into the evening to match the subway's hours.
Those plans will cost at least $35-million. Add in $25-million in other rising costs - including diesel fuel - and $30-million in wage hikes for its unionized workers, and the TTC could be looking for upward of an extra $100-million in its budget next year, Mr. Giambrone said. The TTC's overall operating budget is currently about $1.1-billion.
Commissioners also discussed a lengthy report on a so-called "smart card" fare-collection system, which the TTC estimates would cost $260-million and eliminate the current use of tokens and tickets, but no final decision was made.
Surprise ridership increase strains TTC's wallet
JEFF GRAY
June 14, 2007
Fast-growing ridership on the city's buses, streetcars and subways is part of the reason the Toronto Transit Commission may need to add as much as $100-million to its budget next year, TTC chairman Adam Giambrone says.
With TTC ridership growing at close to 4 per cent - almost twice the rate the TTC projected - the transit agency says its system is overcrowded and needs to put more buses and drivers on the road to cope.
"There's no question that we're going to have challenges, in terms of budget, when we're doing well. But it's a remarkable challenge to have," Mr. Giambrone told a meeting of TTC commissioners yesterday.
The TTC is now expected to at least come close this year to smashing its all-time record of 462.5 million rides, which was set in 1989, before a recession and a decade of government cutbacks and fare increases saw ridership spiral downward. In 2008, if riders keep cramming into the system, the TTC could carry as many as 476 million, officials predict.
But for every new rider the TTC gains, it needs more in government subsidies, since it covers only 75 per cent of its expenses with fares - which is still a high rate compared to most other transit agencies.
Much of the ridership bulge has come as a result of changes made to the TTC's monthly Metropasses, which can now be used by multiple passengers, although not at the same time.
This has actually created a problem for the TTC. Sales of the passes have soared 13 per cent, but riders are using them more often, meaning the TTC is taking in less revenue than expected.
Other factors causing the boom in riders include a humming economy, improvements to service outside rush hours, and the federal government's tax credit for transit passes, TTC officials say.
TTC staff asked the nine city councillors that oversee the commission to approve another 1,900 hours of service a week starting in November, or the equivalent of another 54 bus drivers, over and above the new service the TTC is already planning to add this fall as scores of newly purchased buses arrive.
That will cost an extra $6.7-million when spread out over a year. Even more new service will have to be added in 2008 to keep up as growth continues, Mr. Giambrone says.
This expansion will come on top of plans to beef up bus service, restoring some routes cut in 1996 and running more buses late into the evening to match the subway's hours.
Those plans will cost at least $35-million. Add in $25-million in other rising costs - including diesel fuel - and $30-million in wage hikes for its unionized workers, and the TTC could be looking for upward of an extra $100-million in its budget next year, Mr. Giambrone said. The TTC's overall operating budget is currently about $1.1-billion.
Commissioners also discussed a lengthy report on a so-called "smart card" fare-collection system, which the TTC estimates would cost $260-million and eliminate the current use of tokens and tickets, but no final decision was made.