Ottawa pressing the Ontario, federal governments for new transit funding, Transit Commission chair says

The chair of the Transit Commission says Ottawa is joining other cities in a "full-on" press for transit funding from upper levels of government, as OC Transpo faces ridership challenges and multimillion-dollar deficits.

The chair of the Transit Commission says Ottawa is joining other cities in a "full-on" press for transit funding from upper levels of government, as OC Transpo faces ridership challenges and multimillion-dollar deficits.

A report for the Sept. 5 finance and corporate services committee meeting warns OC Transpo is facing "the greatest financial challenge" of all city services next year, with a projected $35 million shortfall in fare revenue in 2024. Staff are recommending a 2.5 per cent hike in transit fares and possible bus route cuts next year.

"We have a challenge, a big challenge, around our transit budget right now," Transit Commission Chair Glen Gower says. "I think everyone knows that ridership is significantly down compared to pre-pandemic."

Gower told Newstalk 580 CFRA's CFRA Live with Andrew Pinsent on Sunday that OC Transpo service is funded through three sources of revenue: fares, the transit levy on property taxes and assessment growth from new homes and businesses.

"When you're already starting with ridership at 75 per cent, that means you're down a quarter in terms of one of the major revenue streams so it's a big challenge," Gower said, noting bus ridership is at 75 per cent of pre-pandemic levels.

"The other source of funding that every municipality in Ontario and across the country, they're doing a full-on press to the provincial and federal governments to say, 'Please, give us some financial assistance for our transit system,'" Gower said, noting the city of Toronto is facing a multimillion-dollar transit deficit due to lower ridership.

The Toronto Transit Commission was projecting a $336 million shortfall for 2023, according to a report in January.