[URBAN NOTE] "Where Does Ottawa’s New Transit Funding Fit In Toronto’s Budget?"
Steve Munro begins his analysis of the new federal funding for Toronto transit.
With many Huzzahs! the federal government announced the details of funding for many projects in Toronto and other parts of Ontario under its new Public Transit Infrastructure Fund. This first step concentrates on “state of good repair” (“SOGR”) projects, especially as they relate to the TTC whose capital budget has been constrained by Toronto Council’s willingness to raise new revenues for only a few pet projects.
Press reports, together with the usual tub-thumping from Mayor Tory, imply that we are about to see a huge leap in work on TTC infrastructure upgrades. This sounds good, but the truth is not quite so simple, or as photo-op worthy.
The TTC’s Capital Budget can be a forbidding document, even in the short version that is online. The full version, with detailed descriptions of every project, fills two large binders. A fundamental problem, as we have heard every year for some time now, is that the total value of the ten-year Capital Plan is not completely funded, and there is a shortfall over that period of close to $3 billion. This does not include projects with their own earmarked funding such as the Spadina Subway Extension (aka “TYSSE”) or the Scarborough Subway Extension (“SSE”).
The main issues facing the City of Toronto and the TTC are:
•Almost all ongoing funding for Capital spending has dried up at both the Provincial and Federal levels with only the Gas Tax flowing on an annual basis. This amounts to about $160 million from Ottawa and $70m from Queen’s Park (an additional $90m in Provincial funding goes to the Operating Budget).
•City borrowing is constrained by a debt ceiling target such that no more than 15% of the Property Tax income is required to service the City’s debt. Major projects added to the budget in recent years, notably the Gardiner Expressway, have pushed the City right to that line leaving no headroom to finance additional projects until the early 2020s.
•City Council has not been willing to raise additional revenues either through the property tax, or other mechanisms allowed by Queen’s Park, to service new debt beyond the 1.6% Scarborough Subway levy, and Mayor Tory’s proposed 0.5% levy to help fund some other capital needs.
•Queen’s Park announces a lot of transit funding, but this focuses on areas outside of Toronto. Even within Toronto, it flows mainly to Metrolinx, not to the City and TTC. All of the new funding is for Capital projects, not for day-to-day operations.
There is much, much more at his blog.
With many Huzzahs! the federal government announced the details of funding for many projects in Toronto and other parts of Ontario under its new Public Transit Infrastructure Fund. This first step concentrates on “state of good repair” (“SOGR”) projects, especially as they relate to the TTC whose capital budget has been constrained by Toronto Council’s willingness to raise new revenues for only a few pet projects.
Press reports, together with the usual tub-thumping from Mayor Tory, imply that we are about to see a huge leap in work on TTC infrastructure upgrades. This sounds good, but the truth is not quite so simple, or as photo-op worthy.
The TTC’s Capital Budget can be a forbidding document, even in the short version that is online. The full version, with detailed descriptions of every project, fills two large binders. A fundamental problem, as we have heard every year for some time now, is that the total value of the ten-year Capital Plan is not completely funded, and there is a shortfall over that period of close to $3 billion. This does not include projects with their own earmarked funding such as the Spadina Subway Extension (aka “TYSSE”) or the Scarborough Subway Extension (“SSE”).
The main issues facing the City of Toronto and the TTC are:
•Almost all ongoing funding for Capital spending has dried up at both the Provincial and Federal levels with only the Gas Tax flowing on an annual basis. This amounts to about $160 million from Ottawa and $70m from Queen’s Park (an additional $90m in Provincial funding goes to the Operating Budget).
•City borrowing is constrained by a debt ceiling target such that no more than 15% of the Property Tax income is required to service the City’s debt. Major projects added to the budget in recent years, notably the Gardiner Expressway, have pushed the City right to that line leaving no headroom to finance additional projects until the early 2020s.
•City Council has not been willing to raise additional revenues either through the property tax, or other mechanisms allowed by Queen’s Park, to service new debt beyond the 1.6% Scarborough Subway levy, and Mayor Tory’s proposed 0.5% levy to help fund some other capital needs.
•Queen’s Park announces a lot of transit funding, but this focuses on areas outside of Toronto. Even within Toronto, it flows mainly to Metrolinx, not to the City and TTC. All of the new funding is for Capital projects, not for day-to-day operations.
There is much, much more at his blog.