So the City of Toronto currently pays $50 Million annually to subsidize cross border travel. Fare integration would add up to $40 Million to that, for $90 Million in total. That's equivalent to 20% of TTCs operating subsidy. That's quite.
Fare integration should be supported but the province needs to cover the costs. This is getting quite pricey.
It may be true that TTC is "subsidizing" those riders but it's not clear that the CITY is.
As was just pointed out, people who work in Toronto contribute to the economy in many other ways. Heck, is TTC calculating how many 905ers pay to park at Finch and Downsview? That's a pure net gain of $. (i.e. it costs the TTC less for someone from the 905 to park at Finch and take the subway than to take the bus to the subway and take it downtown.)
If all those people who live outside 416 but take transit stopped working in Toronto, the city's economy would not be better off.
If all the math is that "Toronto is losing money by paying [20% of] the fares for 905ers traveling within 416," I don't think it's very good math. And that's still without getting into how travel patterns will change and shift once RER and/or "SmartTrack" is on line. It's an entirely new paradigm but TTC keeps using old-school calculations.
I think any fare integration needs to have pooled funding of some sort to even out the subsidies and not "penalize" Toronto - that should be a given - but I'm still going to take these subsidy numbers with a big grain of salt, given the source. I don't buy for a moment that 905ers who take TTC to work everyday, or the baseball game or whatever, are draining the city of a net nearly-$100m a year.
Our challenge, as a region, is to help these people get to/from where they want/need to go as seamlessly and efficiently as possible (that means in terms of time, routing, cost etc.). That requires balancing the needs of the region's biggest transit system, but if you're not starting with the needs of the system's riders, you're not solving the problem.