TheTigerMaster
Superstar
LIMITED CHANCES TO REDUCE GOVERNMENT SPENDING AND CUT DEFICIT: FAO
Not directly linked to the subway, but important context nevertheless. How does the government plan to reduce the deficit, while adding billions in spending due to their subway upload, without raising taxes? A billion of provincial dollars spent on the subway means that a billion needs to be cut elsewhere.
The answer is: There is no answer.
Precisely. They either add to Ontario's defect or they just don't do the subway upload. They can't have their cake and eat it too. To put this in perspective, the deficit currently sits at $13 Billion, and its looking like the subway upload will be adding several billion in new spending to the QP's books (I'm not a financial expert, so I'll refrain from using specific numbers here). Meanwhile, today's AGO report says that the government doesn't have a lot of room to trim spending elsewhere (so it's tough to just slash spending elsewhere to accommodate the subway spending). The government really seems to be between a rock and a hard place here.
And if you read the Steve Munro article I posted yesterday, you'll see that the government has already built themselves a way out of this subway upload mess. The third option proposed by the government (realignment of responsibilities that do not involve the transfer of assets) would essentially have the City and Metrolinx agree that Metrolinx would be responsible for executing all "new" transit expansions. This option is essentially the status quo, but it lets Queen's Park claim victory while changing absolutely nothing.
Note that option 3 gets is a bit messy, because its not clear how Metrolinx would manage expansion of TTC-owned properties, such as Line 1 and Line 2, or the Relief Line, which is currently planned to utilize TTC-owned yards via the TTC-owned line 2. Most probable outcome that Steve suggested is that the TTC would continue to be responsible for expansions utilizing TTC-owned infrastructure, which I suppose would mean that TTC would retain responsibility for all subway extensions in the foreseeable future (ECLRT is the only planned "subway" line that is truly independent of preexisting TTC infrastructure).
Now I don't put it beyond Ford to say "screw the debt, I want my own subway". But I also don't put it beyond this government to carefully walk back its position, while also claiming victory. Exhibit A: This week, we just witnessed the PC government roll out their own carbon tax plan (just don't call it a carbon tax ), while continuing to rail against the Trudeau Liberals near-identical carbon tax plan.
Only time will tell the outcome, but overall it seems improbable that QP will be taking over the subways anytime soon. Which is a good thing. That means we can defer this regional transit discussion for a few years, until we get some grown ups in office in QP.
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