A Fork in the Road: How Do We Fund Public Transportation

Ottawa has some big decisions to make about public transportation over the next couple of months. City Council is advocating to the Federal and Provincial governments for additional funds to cover a major funding gap. The mayor and the general manager of OC Transpo have said that all options are on the table. While it is important to consider numerous options, not all of those options should be treated equally. The decisions that are made right now could lead us in very different directions. One road could lead us further into the transit death spiral. Another could start the climb out of that hole by focusing on adequately funding public transit to make sure it provides the services residents need without relying so heavily on ridership fares. 

A System that Relies on Riders 

We’ve all been reading (and writing!) news stories about regaining ridership after the pandemic. But all that a ridership number really tells us is how many people are choosing transit based on how the system currently works. It tells us how many people are choosing transit when a bus ride costs $3.85 per person, service is being reduced, and it can take a significantly longer amount of time than driving or biking. The people who are making this ‘choice’ are often the ones for whom it is not actually much of a choice. At a recent city council meeting, staff said that discounted passes (available for youth, students, seniors, people on low-incomes, and the Ontario Disability Support Program) are a pressure point because 69% of ridership revenue comes from these passes. This is a result of the pursuit of an approach focused on fare increases and finding ‘efficiencies’ because transit is viewed as a system for the people who use it.

We cannot rely on riders, especially our neighbours with the most financial challenges, to fund a system that benefits everyone.  

Public Transit Serves Everyone 

If you don’t use transit yourself, you may be wondering why your tax dollars should be supporting a service that you don’t use. But transit is not just a service for riders, it benefits everyone. If all one million people who live in Ottawa drove a vehicle the city would be at a standstill. We are already starting to feel the impacts of this with congestion across the city. Of course, not all those people can drive a vehicle (some are too young, too old, cannot or do not want to drive, or cannot afford a vehicle), strengthening the argument for reliable public transportation. Transit is vital to the local economy; it is estimated that every $10 million in operating investment leads to $32 million in business sales and that 87% of transit trips directly impact the local economy. A well-functioning transit system is important for major businesses looking to establish operations and recruit talent. It is important for prospective residents deciding where they want to live. It can help your own pocketbook too: reliable and accessible transit can allow households to own fewer automobiles saving them thousands of dollars a year. Transit is essential to the city’s climate action plan and reducing the outsized impact of transportation on the climate crisis.  

A System that Provides for Everyone 

The majority of Ottawans are telling us that the current transit set-up doesn’t work for them by not using it. This doesn’t mean they would never take the bus or train or that they don’t support and value the need for public transit. Ottawa has a long history of public transit support and recent polling suggests most Canadians of all political allegiances would support policies to make public transit fare free.  

Rather than basing decisions on modelling and predictions, some transportation experts are now calling for a decide and provide approach. This means looking at what we value, looking at what our policy documents envision, and ensuring that level of service is provided. Following this tactic would lead decision makers to look at providing more service, reliable service, and affordable fares. We need to believe that providing adequate funds for transit now will realize investments already made in light-rail infrastructure and lead to higher ridership and its many benefits later.   

How Much Will It Cost? 

Headlines about a 37% increase to the transit levy or a 75% hike to transit fares emphasize the big financial changes that are in our future. But what do these really mean and how do they compare? 

For the average homeowner a 37% increase to the transit levy would mean about $400 increase on their tax bill. This figure is much smaller than the potential costs in taxi rides, Ubers, or additional vehicle ownership some homeowners would need to take on with transit continuing to flounder. And it would be significantly less than the costs of large fare increases they would need to take on if any members of their family are regular transit users. 

A 75% increase to fares would mean a one-time trip would cost $6.75 and a monthly pass would cost $225.00. Looking at the increase in monthly passes, this would cost riders an additional $1,158.75 per year. This would decimate transit support and leave only those with no other choice but to rely on the service. The potential to increase costs for passes for seniors, youth, people on low-incomes, and disabled people would drastically limit their mobility and/or their quality of life. Currently, the discounted passes are already  3.5 to 8 percent of the monthly income of these residents.    

Oftentimes a crisis presents an opportunity to make significant changes to the ways things are done. In Ottawa, we hope this transit financial crisis provides an opening to a new direction. We can and should explore different ways of funding public transportation, including advocating for the provincial government to allow for different revenue mechanisms like our neighbours in Gatineau have available to them. Ensuring there is strong public funding for public transit puts us on the road to a future where a strong and supported public transit system is the backbone of our city and allows more people to meet their everyday travel needs safely, affordably, and reliably across a range of transportation options.