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FREE TTC ?
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| dEsidEL |
source:
http://www.thestar.com/NASApp/cs/Co...id=968332188492
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Mar. 2, 2004. 01:00 AM
Free TTC service the better way
With higher property taxes and the municipal and provincial governments covering transit expenses, all fares could be eliminated
MICHAEL HLINKA
Over the past few weeks, Toronto Mayor David Miller has been negotiating with Ontario Premier Dalton McGuinty to receive extra provincial support for the TTC. The mayor wants a portion of gasoline taxes to be directed toward his city's transit system.
Miller hopes the formula will be based on ridership rather than population, as this would be more favourable for Toronto. If he gets his way, he will be able to hold the line on fares — an important campaign promise.
That's what Miller wants. But there's a historic opportunity here, one that would forever change the way our public transportation system operates.
Here's what I think the mayor should be proposing:
From this point forward, the province will assume responsibility for all capital expenditures. In return, the city of Toronto will pick up the rest of the TTC tab and provide free service to everyone — and generously share the political credit. (This would deliver the GTA to the Ontario Liberal party for a generation — for those who care, as I suspect the Premier might.)
A few quick points about the TTC budget and the distinction between capital expenditures and operating expenses. Over the past three years (2000 to 2002), capital expenditures, that is, spending on things like buses, trains and the line itself, has averaged $311 million. This tab would thereafter be picked up by the province and, yes, it would control the purse strings, allowing the ruling party to reward its friends and supporters with lucrative contracts.
The city of Toronto would take care of the operating expenses, the day-to-day costs like wages, fuel, etc. Over the most recently reported past three years (the 2003 annual report is not yet available), cash operating expenses have climbed from $775 million to $885 million. These are offset, albeit slightly, by other revenue sources such as property rental and advertising, which have increased from $35 million to $47 million. That leaves an additional $740 million in 2000 climbing to $838 million in 2002. This is how much the city would have to come up with.
Now this is how I'd like to see it come up with that money:
Toronto should levy an additional property tax on the 900 million square feet of residential space in the GTA. Based on the TTC's 2002 operating expenses, that would work out to about 93 cents per foot per year. For someone like me who lives in a 690 square foot condominium, I'd be dinged for an extra $642 per annum. Not that paying higher taxes particularly pleases me, but at least I'd be contributing to a program that is good for almost everyone.
The benefit to a middle-class, property-owning, frequent TTC riding Torontonian is obvious: You pay a few hundred dollars more in taxes and save $1,000 in fares. Think of the working couple with children where both parents use transit to get to work. There are a lot of these folks — they'd be looking at a pretty good windfall. Consider the TTC ridership. It is wildly overrepresented by those at the lower end of the socio-economic scale. Many of those people are not property owners. Now they would travel to work for free. A de facto pay increase would be given overnight to Toronto's working poor, money that would allow saving in order for them to become property owners. The Canadian dream in action.
But this plan also benefits property-owning non-riders, especially those who travel the city in their Mercedes and Caddies. I'm talking, of course, about some of Toronto's more financially fortunate.
Moving people by public transit is more energy efficient than the one person per vehicle model. Toronto is a huge importer of oil products, which means that there is a matching outflow of wealth. This hits all of us and the more money you make, the more you consume, the harder the hit.
Gridlock, which inevitably means highly trained professionals sitting idly and unproductively in traffic, costs the "system" (read: the elites) thousands of dollars a year.
Finally, more TTC utilization and less traffic means lower fuel consumption and less wear and tear on infrastructure, which means a cleaner, greener city. Who can argue with any of that?
Overlaying all of this is a larger social issue. The foremost economic challenge our city faces isn't a lack of wealth. Rather, it's the uneven distribution of it. Raising property taxes and using the proceeds to eliminate TTC fares would be an explicit recognition that government has a legitimate role in effecting at least a limited redistribution of wealth. Enlightened and just public policy truly begins at home ... in the place that I call home.
Toronto is a city that works. Providing free TTC for everyone at all times at the expense of relatively wealthy property owners would make it work just that much better.
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I'm curious as to how the 905 people will be considered in this equation..
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| Resnick |
| i think for way more ppl than not, it will cost them more tax than they get out of ttc |
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| maxtuh |
| umm no, i dont want to pay 50% more. |
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| Fin.K.L |
It's not gonna happen at all...
Canada is a capitalist country. |
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| drgoodvibe |
Even with the proposed 1 BILLION extra from all levels of the government the TTC could never be free. It has a annual running budget of 400Million, and frankly I don't think people would tolerate any additional taxes.. everybody complains about there property taxes going up as it is, which would only drive people to go buy huge homes somewhere in suburbia hell which would just be counter intuitive to revitilizing the city.
The financial elite who drive to work in a mercedes benz don't live inside the city, they live somewhere in richmond hill or north york and commute to work in a car EITHER WAY! Free TTC wouldnt be incentive enough to get them to use it.
Those who rent can stand to gain from this however.
I would suggest maybe a rollback to $2.00 instead of $2.25 per ticket. |
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| brunette |
that isn't going to happen..
I agree with Beh ^^
However, I do think it's expensive. I will bring up Moscow metro again, it just has to be done :p 9 MILLION PEOPLE A DAY and it shouldn't even be remotely close to Toronto's in terms of accessibility, not even compared to - the fare is less than 50 cents (and Moscow is world's second-most expensive city).. You can stay underground for a week and not see it all. |
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| Crazy Serb |
Pffft... not likely to happen.
What the author of that article fails to take into consideration is the fact that most of the people that drive to work don't do it simply because they can afford it, but do it because the damn TTC is goddamn slow, unreliable, not accessible to many, plus not everyone wants to deal with ALL THOSE GODDAMN PEOPLE on buses/subways during rush hours, breakdowns, people jumping on the tracks, etc, when they could just comfortably and reliably drive to work (and anywhere else for that matter) for a few bucks more. |
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| ahlamalek |
| actually it worked out in many European cities... i am not sure if they were as big as Toronto tho. |
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| Skipper |
If any sort of taxes should be increased to subsidize transit, it should be gas tax.
Property taxes are out of control in this city as it is. |
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| psychosomatica |
| Frig. What If somebody owns a 6000 sq. feet house? They're most likely not going to be taking the TTC. It's usually the lower income households that use public transit. 93 cents is insane for even a 1000 sq. feet house... spreading the burden of the TTC's mistakes wont help anyone I dont think. |
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| dEsidEL |
| quote: | Originally posted by drgoodvibe
Those who rent can stand to gain from this however.
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i thought rent might increase as a result of something like this too ..
and serious what about people in the 905 who take the TTC .. author doesn't mention how they'd be affected by this..
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| drgoodvibe |
| quote: | Originally posted by Skipper
If any sort of taxes should be increased to subsidize transit, it should be gas tax.
Property taxes are out of control in this city as it is. |
I totally agree with this... |
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