[URBAN NOTE] "TTC looking for ways to cover $172M budget gap"

[rfmcdonald]

The Toronto Star's Ben Spurr reports on the TTC's budget crunch for this year's operating budget.

The TTC has found additional savings in its 2017 budget, including millions of dollars that will be reaped by a delayed switch to the Presto fare card system, but the agency is still facing a big shortfall next year if it’s to meet the budget target imposed by city council.

In a report released Friday on its 2017 operating budget, the transit agency said that it’s expecting to spend $16 million less on the Presto system next year because it will take longer than expected to phase out older fare media, which include tokens, tickets, and Metropasses. The agency also expects to spend $11 million less on diesel costs.

That will reduce its opening shortfall to $188 million, down from an earlier estimate of $215 million. Coupled with a $15.4-million draw from the TTC stabilization reserve fund, the remaining gap is roughly $172.6 million.

The opening pressure represents increased costs the TTC is facing next year just to maintain existing service levels. They include rising Wheel-Trans demand, the opening of the Toronto York Subway extension, labour expenses set out in the agency’s collective bargaining agreement, and lower than expected ridership this year.

The TTC will have to find enough money to offset the shortfall in order to meet council’s target of reducing its net operating budget by 2.6 per cent compared to this year .The target, backed by Mayor John Tory, is being applied to all city departments.