Key Takeaways
- Transit fares are rising in Canadian cities due to increasing energy, maintenance, and labor costs, as well as declining gas tax revenues.
- Experts argue that the current funding model for public transit is unsustainable and that a new framework is needed to assess the value of transit, taking into account health and social benefits.
- Advocacy organizations are pushing for governments to reframe how they view public transit, arguing it’s an essential service that requires more stable funding.
- Some experts suggest implementing road tolls or dedicating a revenue source for public transportation systems to raise funds and improve services.
- Free or low-cost public transit options are being explored in some cities, with some smaller municipalities making public transit free entirely.
Introduction to the Problem
With transit fares on the rise in a number of Canadian cities, some experts say it’s time to rethink how we fund public transportation. Calgary, Ottawa, Edmonton, Victoria, and Vancouver have all recently increased their transit fares, with more cities likely to follow suit. The rising fares are a reflection of mounting pressures on transit systems, including increasing energy, maintenance, and labor costs, as well as declining gas tax revenues due to the rise of electric and energy-efficient vehicles. Meanwhile, transit organizations are still recovering from the COVID-19 pandemic, when ridership and fare revenues plummeted.
The Impact of Rising Fares
The increasing cost of transit fares is not only a burden on commuters but also has a broader impact on society. Lawrence Frank, an urban studies and planning professor, argues that hiking fares threatens to reduce ridership and "price people off the system," which predominantly impacts people who are low-income and have no other options. He suggests that the current funding model for public transit is flawed and that a new framework is needed to assess the value of transit, taking into account health and social benefits. Frank’s research has found that using transit instead of driving reduces the likelihood of obesity and other health concerns, and that a healthier workforce has significant economic benefits.
The Need for a New Funding Model
Advocacy organizations have been pushing for governments to reframe how they view public transit, arguing it’s an essential service that requires more stable funding. Jeff Casello, a professor with the University of Waterloo’s school of public planning, suggests that public transit needs a dedicated revenue source, such as road tolls, to raise funds and improve services. He notes that cities like London, New York City, and Singapore have implemented road tolls to raise funds for improving public transportation systems, with significant successes. Casello also suggests that subsidizing costs for low-income riders is crucial to ensure that transit users aren’t priced out of the system.
Alternative Solutions
Some cities are exploring alternative solutions to make public transit more affordable. Durham, Ontario, and Gatineau, Quebec, have introduced capped fares, where riders pay a maximum amount per month. Toronto Mayor Olivia Chow has proposed a 47-rides-a-month cap, which would amount to about $156, or the cost of a monthly pass. Other cities, like Orangeville, Ontario, and Canmore, Alberta, have made public transit free entirely, with significant increases in ridership. Even larger cities, like Albuquerque, New Mexico, offer free municipal public transit, and New York City’s mayor-elect has pledged to make bus service free, funded in part by raising taxes on the wealthiest corporations and individuals.
The Challenge of Urban Sprawl
Thiago Carvalho, a PhD student in McGill University’s school of urban planning, notes that rising transit costs are a global issue, but the urban sprawl and lower density of most Canadian cities make it especially hard to keep costs down. He suggests that Canadian cities could learn from cities like Tokyo, where developers have constructed entire "downtowns" around metro stations, with revenue from real estate, retail, and other commercial properties helping to sustain and expand the routes. Carvalho argues that transit-oriented development can help keep transit costs down in the long term, but that a shift in the way we view the role of public transit in Canadian society is needed to ensure sustainable funding.
Conclusion
In conclusion, the rising cost of transit fares in Canadian cities is a complex issue that requires a multifaceted solution. Experts agree that the current funding model for public transit is unsustainable and that a new framework is needed to assess the value of transit, taking into account health and social benefits. Alternative solutions, such as road tolls, dedicated revenue sources, and free or low-cost public transit options, are being explored. Ultimately, a shift in the way we view the role of public transit in Canadian society is needed to ensure sustainable funding and to make public transit a viable option for all commuters.
