Canada's three largest transit agencies urge early launch of permanent transit fund

Chief executives from the Toronto Transit Commission (TTC), Societe de transport de Montreal (STM) and TransLink are appealing to Canadian federal government leaders to launch a promised permanent transit fund (PTF) two years ahead of schedule to help the transit agencies address growing pressures on their systems.

Together, the three transit agencies generate about 60% of Canada’s transit ridership and serve the core of regional economies that generate about 40% of Canada’s national gross domestic product.

In a joint federal budget submission, the three CEOs called on lawmakers in Ottawa to advance the funding commitment under the new federal fund by early 2024 instead of in 2026 to help advance critical projects and programs, and support long-term capital planning.

“A strong public transit system is fundamental to meeting our affordability and climate action goals," said TTC CEO Rick Leary in a press release. "With the city of Toronto and province of Ontario committing hundreds of millions of dollars toward new subway trains for Line 2, we are hoping the government of Canada will open the PTF early in order for us to start the process of purchasing the new trains."

The CEOs outline the challenges they face due to aging infrastructure, an outdated funding model that relies on regressive sources such as transit fares and property taxes and forecasted ridership growth for the coming decades. With approximately 2.35 million new residents expected before 2050 in the three cities, immediate and sustained investment in transit operations, state-of-good-repair efforts and building capacity is essential to prepare for this growth, the CEOs stress.

“We have a rapidly growing population and an urgent need for ongoing sustainable transportation to meet our environmental goals — we cannot afford to wait another two years for access to the permanent transit fund," said STM CEO Marie-Claude Leonard. "We need that funding now to ensure reliable operation of our networks. It’s unthinkable that we would have to cut public transit services or put off refurbishing and replacing our outdated infrastructure because the available funds were allocated too late.”