Public transit, ‘unsexy’ infrastructure gets the nod in budget

Liberals split infrastructure promise into two “phases,” plan to review overall infrastructure pot in future budgets.

Thestar.com
March 22, 2016
By Alex Boutilier

The Liberals’ push to fund public transit and unglamorous projects like upgrading water systems is being met with approval from the mayors of Canada’s two largest cities.

Finance Minister Bill Morneau’s first budget committed $11.9 billion over five years for new infrastructure spending, calling it the first phase of a two-phase push to get $60 billion out the door over the coming decade.

The bulk of phase one - $5 billion over five years - will be spent on less flashy but necessary upgrades to municipal water and wastewater infrastructure, as well as “green” infrastructure projects.

Public transit will see an additional $3.4 billion over five years, with the majority of the money going to Ontario and Quebec. The two provinces account for over 71 per cent of public transit ridership, and will receive $2.41 billion. An additional $3.4 billion will be spent on “social infrastructure,” including housing, child care, and recreational facilities.

“This is truly a cities budget and I’m encouraged by the investments being made in Toronto from transit to social housing, green infrastructure to heritage and culture,” Toronto Mayor John Tory told reporters at city hall.

Though infrastructure money will be immediately available for social housing repairs, it won’t be enough to cover the increased $325 million budgeted to prevent further closure of Toronto Community Housing units in 2017. Tory said he hopes Queen’s Park comes to the table to help.

While the budget is short on specifics, it does mention fleet replacement for the Toronto Transit Commission - new subway cars, low-floor buses, and street cars - as a possible project.

The Liberals have also committed to funding up to 50 per cent of some eligible projects, rather than the traditional three-way split between Ottawa, the provinces, and municipalities.

The decision to cough up 50 per cent of the funding for some projects, a PMO official said, was a desire to get money out the door quickly at a time when provinces and municipalities may not have the cash to be an equal partner.

“I had a feeling like it was like a new deal,” said Montreal Mayor Denis Coderre outside the House of Commons. “This is exactly what we were looking for ... ”

The infrastructure spending in Morneau’s first budget falls short of the Liberals’ campaign pledge for an immediate $5 billion injection into the economy. But the government expects the spending to ramp up in year two.