David Cooper, principal at Leading Mobility, emphasizes that "if operating revenue challenges are not addressed, a downward spiral for public transit service in Canada is inevitable." The reliance on limited funding sources, primarily passenger fares and property taxes, exposes transit systems to significant financial risk.
While federal investments amounting to billions are aimed at transit expansion, Cooper warns that "you actually can't materialize the benefits of these investments if the cities actually can't afford to run it." This highlights the critical disconnect between funding expansion and sustaining operational effectiveness.
The analysis reveals alarming financial projections across various cities, with Ottawa's OC Transpo falling short by a million dollars each month, Calgary facing a $33 million shortfall, and Montreal predicting an increasing deficit that may exceed $700 million by 2028, signaling severe systemic issues.
The report points out that the dependency on passenger fares and property taxes for transit funding results in significant limitations for cities, creating an unsustainable financial environment for public transit. The analysis of eight major cities illustrates the urgent need for diversified revenue streams.
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