Here's the reason to be worried about RER. It is not Doug, it is the dynamics of the capital spend at this point in time.
Note that the heaviest capital spending is ahead of us. By the end of FY 2018, however, ML will in theory have spent $4B on RER (actually, I suspect they haven't got out of the gate as fast as the BCA lays out.... but lots of money is being spent.)
Any incoming government will look at this fiscal year's spend, plus the last couple of years, and ask the question, "What have we gotten for this money?"
The honest, objective answer is: "Not much. Prettier stations, lots of parking garages, acres and acres of engineering drawings, and studies. But little added capacity and only minimal additions to the service profile. Ridership hasn't gone up that much (yet).
The next question will be, "Well, how do we get this investment to pay off?"
The answer to that is, "Spend another $15B" and "Then wait until 2023 when we think revenue will begin to rise"
Any sensible politician, of any stripe, will not fall for that kind of rope-a-dope play.
ML's mistake has been to back end load the key spending. And then implement a two year delay by moving to the AFP model. And be scrupulous about not favouring one line over another.
Had they picked one line, and intensively upgraded it, that line might be done today, and it might encourage voters to demand fast action on the other lines.
With the Ontario deficit where it is, any sensible incoming Finance Minister will say, "OK, I support RER, but you get only $1.5B per year for as long as it takes." Just look at what capping RER capex at $1.5B annually does to the intended in service dates.
Don't be afraid of Ford, be afraid of Wynne. Have you read the social spending she is promising at the moment? Free daycare for preschoolers is the latest promise. I'm not for or against that, I'm just saying that with Ontario's borrowing effectively capped, the only option she has to fund daycare is to remove $2.3B from somewhere else. Such as RER.
Horvath is making similar promises. Her ability to borrow will be just as constrained - in fact the street might be extra leery of a more left leaning government when they come to borrow. She will have to move money from somewhere.
Ford will undoubtedly steer the ship back towards a balanced budget. He hasn't made any comments about transit - yet - but the big hump in the RER capex shown above is
borrowed money. Figure it out.
- Paul