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TTC's $1B shortfall
Transit exec: Province is 'absolutely' screwing T.O.
By ROB GRANATSTEIN, CITY HALL BUREAU
The TTC is rolling toward a $1 billion cash crisis.
Changes in the provincial funding formula, requests to speed up the purchase of new streetcars, fixing up the Scarborough RT line, ensuring there are enough buses and questions about federal funding have left the TTC facing a huge hole in its five-year capital budget.
"The funding requirements for transit are stupendous," said city budget chief David Soknacki.
Funding the TTC is already set to be the biggest requirement in the city, and that's before the extra $1 billion cash call emerged, Soknacki said.
"The city made basic assumptions with federal and provincial programs continuing," he said. "But they're not."
Soknacki said the TTC made commitments to buy buses based on the existing provincial funding. Now that it's changed, the order can't be cancelled and the money may have to come from the fare box or property tax bills.
TTC chief financial officer Michael Roche said when the province cancelled its Ontario Transit Vehicle Program, $331 million disappeared.
The OTVP gave the city money for replacement vehicles.
Starting in 2007, Roche said, the money will only be available for bus purchases, not trains, streetcars or the Scarborough RT fix that will be necessary soon.
TTC vice-chairman Adam Giambrone was asked yesterday if the province was screwing the TTC.
"Absolutely," he said.
RIDERSHIP GROWING
Giambrone said talks between the province and the city continue, but without a change, the TTC will be leaving people at the side of the road because ridership is growing by more than 10 million rides a year.
Roche said the other problem is the TTC is trying to build for the future, too -- and that costs more.
Part of that is buying new, low-floor streetcars. The TTC is speeding up the purchase of 64 new streetcars. The total cost is the same, but the bill comes sooner.
It also has to replace the aging Scarborough RT line, where the cars won't work by 2015. Fixes to the system, from replacing the cars to building a Scarborough subway system, could cost between $360 million to $1.2 billion.
"The money isn't necessarily here," Roche said.
The TTC entered the five-year plan with a $319 million shortfall, but hoped to fill it with money left over from 2005 and new federal government money.
It is hoped a deal with the federal government will be signed soon, pumping millions into the system, but Roche doesn't know how much Toronto would get.
The other problem is the $1 billion hole doesn't include any city money for the extension of the subway to York University announced in the last budget by the province.
TTC's $1B shortfall
Transit exec: Province is 'absolutely' screwing T.O.
By ROB GRANATSTEIN, CITY HALL BUREAU
The TTC is rolling toward a $1 billion cash crisis.
Changes in the provincial funding formula, requests to speed up the purchase of new streetcars, fixing up the Scarborough RT line, ensuring there are enough buses and questions about federal funding have left the TTC facing a huge hole in its five-year capital budget.
"The funding requirements for transit are stupendous," said city budget chief David Soknacki.
Funding the TTC is already set to be the biggest requirement in the city, and that's before the extra $1 billion cash call emerged, Soknacki said.
"The city made basic assumptions with federal and provincial programs continuing," he said. "But they're not."
Soknacki said the TTC made commitments to buy buses based on the existing provincial funding. Now that it's changed, the order can't be cancelled and the money may have to come from the fare box or property tax bills.
TTC chief financial officer Michael Roche said when the province cancelled its Ontario Transit Vehicle Program, $331 million disappeared.
The OTVP gave the city money for replacement vehicles.
Starting in 2007, Roche said, the money will only be available for bus purchases, not trains, streetcars or the Scarborough RT fix that will be necessary soon.
TTC vice-chairman Adam Giambrone was asked yesterday if the province was screwing the TTC.
"Absolutely," he said.
RIDERSHIP GROWING
Giambrone said talks between the province and the city continue, but without a change, the TTC will be leaving people at the side of the road because ridership is growing by more than 10 million rides a year.
Roche said the other problem is the TTC is trying to build for the future, too -- and that costs more.
Part of that is buying new, low-floor streetcars. The TTC is speeding up the purchase of 64 new streetcars. The total cost is the same, but the bill comes sooner.
It also has to replace the aging Scarborough RT line, where the cars won't work by 2015. Fixes to the system, from replacing the cars to building a Scarborough subway system, could cost between $360 million to $1.2 billion.
"The money isn't necessarily here," Roche said.
The TTC entered the five-year plan with a $319 million shortfall, but hoped to fill it with money left over from 2005 and new federal government money.
It is hoped a deal with the federal government will be signed soon, pumping millions into the system, but Roche doesn't know how much Toronto would get.
The other problem is the $1 billion hole doesn't include any city money for the extension of the subway to York University announced in the last budget by the province.
I sense a bigger property tax increase, increase in service fees, parking permits and TTC fares for next year and beyond?money may have to come from the fare box or property tax bills......TTC entered the five-year plan with a $319 million shortfall.....hoped a deal with the federal government will be signed soon, pumping millions into the system....doesn't know how much Toronto would get.