TTC to mull hiking cash fares in 2016

It's early in the budget process but TTC staff will report on various fare increase and freeze scenarios.

Thestar.com
July 30, 2015
By Tess Kalinowski

TTC riders are already being warned to brace for higher fares again next year and transit officials are warning that the long, untouched cash fare is due for a hike if not in 2016, soon after that.

The TTC is predicting a $99 million shortfall on a projected estimated operating budget of about $1.8 billion in 2016.

But, in its very early projections, the city, which subsidizes about a third of those costs, is figuring in a fare increase equal to about $30 million. Council won’t vote on the city budget, including the TTC subsidy, until early in the New Year.

So it’s very early in the process, cautioned councillor , the TTC board chairJosh Colle, the TTC board chair.

But on Thursday, that board’s budget committee asked transit staff to report back on a number of fare scenarios, including increases, freezes and the implications of restricting an increase to the cash fare or Metropass versus spreading the pain across the system.

“Commissioners earlier on in the (budget) process have to see what all those options are - a big increase, a modest one, no increase at all - because that forces decisions. So that report will come back to the next budget committee and certainly the fare increase is something we’ll have to consider,” he said.

The staff report would also look at the implications of Presto fare card implementation on the fare structure. The cards are supposed to be available across the TTC by the end of next year.

The $3 cash fare which has been static since 2010 when it was increased 25 cents. Adding another quarter to that price would allow riders to pay in cash using the coins they would typically have in their pockets, said Colle.

“At some point there will have to be a really significant cash fare, probably not this year, when we want to move to Presto. Somewhere in the not-too-distant future cash fare will probably have a serious jump just to get people to the card,” said Colle.

This year, the TTC hiked the price of a token by a dime and upped the cost of a Metropass by $93 a year to put an additional $29 million toward operating.

Colle said he wants to up-end the TTC budget process by providing the board and riders with potential enhancements, particularly more express bus service, and making the case that the city should help pay for it. The current process assumes the same subsidy as last year so that costs are allocated to fit that amount.

The budget committee presentation suggests the TTC is looking for a $573 million subsidy next year from the city, about $90 million more than this year.

The annualized cost of the $95 million in service improvements this year, including free rides for children 12 and under and the restoration of service cut in 2012, will be $45 million.