[URBAN NOTE] On how the TTC's safe from fare increases, so far

[rfmcdonald]

This is good news ...

TTC chair Karen Stintz has confirmed that the fare hike is off and the city has found the $24 million the fare increase would have raised.

Stintz said city staff found a further $16 million that will be added to the TTC budget, and the TTC found $8 million. She couldn't say where the money is coming from, referring questions to city manager Joe Pennachetti and TTC staff.

Adrienne Batra, a spokeswoman for Mayor Rob Ford who was present at the 2 p.m. announcement, welcomed the news and praised Stintz, brushing aside suggestions the aborted hike was engineered to make Ford and Stintz look good.

All will be explained, she said, when staff release details of the found money.

[. . .]

The proposed TTC fare hike of $5 a month on Metropasses would have cost transit riders $60 a year.

Sort of. I wonder if this was all a piece of political theatre, something to make wary TTC users happy. I also wonder if this is sustainable, and if the city government is going to transfer more funds to the TTC--that, or cut services even more.

When Mayor Rob Ford announced his proposed Toronto operating budget on Monday, he said he wasn’t happy about the fare increase. Stintz echoed his displeasure. Both vowed they would do everything possible to avoid the price increase.

But city manager Joe Penachetti said staff could see no other way to balance the city budget while ensuring the TTC had the money it needs to operate.

In addition to raising fares, the TTC is proposing to cut late-night, off-peak and weekend service on 48 bus routes it says average 12 or less riders per hour.

And what of the 2012 budget and TTC service in the future?

Mr. Ford leaned heavily on revenue windfalls and $346-million in surplus cash – $78-million from 2009 and $268-million from 2010 – to balance his budget. The real pain, he and others warned, won’t be inflicted until 2012.

“It’s a bunch of good luck,” said David Soknacki, David Miller’s first budget chief. “The advice is to enjoy it, because it won’t happen every year.”

[. . .]

Mr. Ford still wants the TTC to find some way to stop the 10-cent fare increase, but Gary Webster, the TTC’s chief general manager, said that would require slashing service and shelving the mayor’s customer-service improvements.

Will this mean a more straitened TTC in the future?