A couple of points. The capital cost of implementing Presto at the TTC is approx. $400 million, with the province providing a subsidy that would reduce the cost to the TTC's budget to approx. $200 million. The costs are huge compared to the other transit systems which are a fraction of the TTC's size in every way. From the very beginning of Presto, TTC was the elephant in the room that they preferred to "deal with later." I guess "later" is now and, surprise, surprise, there's no money.
The ongoing operating costs of Presto at the TTC will be borne by the TTC in its operating budget. I can't recall the estimated numbers, but it is a lot more than what is currently spent on fare collection. The Station Collectors (who make the same as an Operator-- approx. $60,000 per yr at the top end, excluding overtime) would be replaced by Fare Inspectors and there would have to be a lot more of them roaming the system. In addition, you would have a whole new group of IT staff maintaining software and computers, plus the maintenance of the electronic readers. Whether or not this is contracted all or in part to Accenture/Metrolinx, the cost is covered entirely by the individual transit agencies, not by provincial subsidy. The TTC's current fare system, though antiquated, is actually pretty low-maintenance and associated costs are relatively low, compared to the new electronic system. The new system will cost a LOT more than the old one. Open Payments, where the private sector does it all, at an annual cost of approx. $100-150 million to the TTC is a superior, off-the-shelf system and exactly the kind of public-private partnership that is realistic and could actually work in the public's favour. Ironic that the Mayor supports the customized, government-does-it-all Presto option, while at the same time, pushing for P3's where they make little or no sense (suburban subways). It's all backwards.