Federal funding for Scarborough subway in question

As the cost of the subway extension increases, the city is looking to confirm the federal and provincial governments’ commitments. But some worries remain that the rising price will impact funding for other projects.

Thestar.com
March 6, 2017
By Jennifer Pagliaro

The source of funding for the future of transit in Scarborough remains in question as the debate returns to city hall Tuesday.

That uncertainty has caused concern a planned one-stop Scarborough subway extension may be put in direct funding competition with the city’s other priority transit requests, including a 17-stop LRT in Scarborough also promised by Mayor John Tory and a much-needed relief line for the Yonge-University subway.

The federal and provincial governments have recently confirmed they will help pay for the subway, but funding for major infrastructure projects can become complicated when commitments span multiple administrations. Often newly-elected governments propose a new way of doing business.

In a report released last week, city staff outlined a need to confirm previous commitments from both the federal and provincial governments required to fund the majority of the subway extension that is now estimated to cost $3.35 billion before financing and other factors are considered.

The provincial and federal governments committed to funding $1.48 billion (in 2010 dollars) and $660 million respectively.

But it’s unclear whether the federal dollars will be provided through an existing fund, as previously outlined - and how the province will administer those funds - or if that commitment would be rolled into a new pool of infrastructure money the city hopes will contribute to additional unfunded transit needs.

City staff recommended that council seek clarity on that funding source. Tory’s executive committee will debate the subway plans at a meeting Tuesday.

At a regular meeting with Toronto-area MPs, Tory recently stressed that the federal government’s $660 million commitment should not be rolled into the new $20-billion infrastructure fund - a message Scarborough-Agincourt MP Arnold Chan said was communicated to the infrastructure minister and the ministry of finance.

“The Scarborough subway extension is fully funded by three levels of government, and will in no way impact our priorities or take away from Toronto’s priority projects for the second phase of the federal Public Transit Infrastructure Fund,” Tory spokesperson Don Peat said in an email Monday.

But Chan said that fund is being “rolled into” his government’s infrastructure plan and will no longer exist.

“We got that message very clearly, but, you know, keep in mind the previous (Tory) government made a series of announcements without actually putting funding allocations attached to this,” Chan said.

The federal funds were originally promised in writing by former infrastructure minister Denis Lebel under the Harper administration. In the 2013 letter, Lebel said up to $660 million would be set aside under a provincial allocation of the New Building Canada Fund.

On Monday, current Infrastructure Minister Amarjeet Sohi’s office, through spokesperson Kate Monfette, said they remain committed to $660 million in funding and that the New Building Canada Fund has yet to be depleted.

She did not respond to a question about whether there was a circumstance where the $660 million would be lumped into the new pool of infrastructure spending.

“We look forward to having more details to announce in the coming months,” Monfette wrote.

Details are expected in the upcoming federal budget announcement.

Officials in Tory’s office said it is their understanding the New Building Canada Fund commitment to the subway is to be allocated by the province after formal applications were submitted in 2014 - what has not yet been spelled out.

It was originally believed $3.56 billion in funding would be needed for a three-stop subway. In January, the city changed course and approved plan to fund a one-stop subway and the 17-stop Eglinton East LRT - both projects were said to be possible within the same funding envelope. But with recent increases in the cost of the subway, the $1.6 billion LRT is at this point unfunded.

Tory said last week the city would request the provincial and federal governments help pay for the LRT. Neither government has committed to that funding.