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Is Ontario a ‘real funding partner’ for Toronto’s relief line?

The Yonge Relief Line may have a new alignment — and that decision couldn’t come soon enough. This alignment is one of the few remaining steps that need approval before city staff can push this much-needed project forward.

And this project NEEDS to move forward.

The relief line has been talked about on and off for the last decade, and yet, it is still nowhere near completion. Politics always got in the way. Since then, the original Yonge line (Line 1) has become more crowded. This has made commutes nearly unbearable during peak hours. It has effected ridership and forced more people to use their cars instead of taking public transportation.

While some question the need for a relief line, especially with SmartTrack on the table, city staff, the Toronto Transit Commission, and Metrolinx have all come together to label the relief line as a priority for Toronto’s new transit network. Without it, they say, congestion on the Yonge Line will not be alleviated.

The biggest problem with the relief line will be the funding. As Toronto Mayor John Tory said repeatedly at a series of press conferences on transit last week, without serious funding from provincial and federal partners, Toronto will be unable to grow its transit network.

The Ontario government promised in 2016 to provide $150 million in funds to the planning and design of the relief line. That number has not changed, despite the current cost projection of $6.8 billion for the relief line. This means that the provincial contribution won’t do anything other then fund a study or two.

It’s also why Tory has been campaigning and pushing the province for more. When the province dismissed Toronto’s attempt at raising funds through tolls, they effectively removed a significant form of revenue for the city. Without that money, Toronto has no choice but to make its residents pay for the transit network, no matter what the politicians say. That’s why Tory is asking the province to step up and become a “real partner” in their efforts to fund transit infrastructure. He wants the province and the federal government to each pay 40 per cent of the relief line.

The province has been hitting back, indicating they are a “stable provincial funding partner”, despite the lack of funding announcements. But Toronto residents are not falling for it — and that fact is already showing in the polls.

Taking away a revenue-generating tool like tolls without offering a solution is not leadership. Ignoring the needs of one of the biggest cities in the province is also not the way to get elected, despite what advisors may be whispering into the Premier’s ears. The Liberal government will find that out if they refuse Tory’s proposal of short-term hotel taxes as a revenue tool.

Back to the relief line: In May, the executive committee will debate the new alignment option down Carlaw Ave., between Gerrard St. and Eastern Ave., before sending the route to city council for approval.

At this moment, construction will begin in 2025.

Tory hits back at province for transit and relief line funds

Early Tuesday morning, Toronto Mayor John Tory sent a letter and a list of budget recommendations to Ontario Minister of Finance, Charles Sousa, calling on Ontario to become “a full partner in cost-sharing of major infrastructure investments going forward.”

The letter outlines Toronto’s infrastructure expectations given the province’s rejection of tolls. Tory said the province has an “obligation” to help the city pay for the maintenance of both the Don Valley Parkway and the Gardiner Expressway, in addition to helping pay for new lines in the transit network, like the Yonge Relief Line.

Tory’s budget recommendation included the approval of a new revenue tool — a levy on hotel and short-term accommodation. The city of Toronto needs legislative authority from the province in order to tax lodgings; however, it doesn’t want this tool to interfere with the funding already given to Tourism Toronto. Tory is proposing a four per cent tax on hotels and short-term accommodations like airbnb.

In addition to a revenue tool, Tory has outlined a list of recommended items the province should fund, including $820 million to help rehabilitate the Gardiner Expressway, $3.36 billion for the transit network plan, $863 million for Toronto Community Housing, and $50 million for child care subsidies.

These recommendations follow a public exchange by Tory and Ontario Minister of Transportation, Steven Del Duca on Monday, in which Tory told the media the province was not acting like a “full partner” in their commitment to build transit. Tory stood at the Bloor – Yonge subway platform and said the province needed to come up with a plan to help contribute to the relief line and other transit projects. He suggested the province, as well as the federal government, each contribute 40 per cent of the funds for the project. Toronto would then pay for the remaining 20 per cent.

Del Duca responded with his own press statement, saying the Ontario government has “always been a strong partner with Toronto city council” and that they were “not going to play political games with transit.” With words bolded and underlined, Del Duca mentioned the measly $150 million the provincial government has already pledged to the relief line and claimed to be a “stable provincial funding partner at the table” unlike the federal government.

The reality is that Toronto needs billions to develop its transit network — a network that will benefit residents throughout the GTHA as more people use public transportation instead of driving on already congested roadways. The refusal of the provincial government to allow Toronto to fund its own projects through revenue tools like tolls puts projects like the downtown relief line in jeopardy. Toronto’s growth and development is, effectively, at the mercy of Queen’s Park.

Tory understands this and is fighting back. He is trying to make it abundantly clear that if the province doesn’t allow Toronto to explore and use its own revenue tools, then it has to step up to the plate and help pay for these important projects.

There are universal benefits to developing Toronto’s transit network. It will help reduce carbon emissions as less people drive into the city. It will help connect the Greater Toronto Hamilton Area so that people can get from their home to work in a seamless manner. And it will help reduce congestion for those who have no choice but to use their car to get around.

Funding this network is a win-win scenario — and if the province is not going play politics with transit, they would see that.

Should Toronto use tolls to maintain transit network?

The City of Toronto has completed the first round of negotiations with the province over funding for the Transit Network. Staff will present their updated financial report to a special executive committee meeting Tuesday afternoon for approval prior to the November city council meeting the following week.

The report outlines the funding model for the various elements of the Transit Network, including the amount of money being provided by the Ontario government. As of Nov. 1, the province has offered $3.7 billion for Regional Express Rail (RER) and $7.84 billion for Light Rail Transit (LRT).

The biggest blow to the transit-funding model is that city council will now be responsible for the day-to-day operations or maintenance of the Finch West, Sheppard East, and Eglinton Crosstown LRTs. These are projects that will be built by the province and Metrolinx; yet, Toronto residents will be on the hook for its maintenance.

Aspects of SmartTrack will be covered under the provincial funding; however, it will not be enough. The federal government has said they will make a contribution — but there has been no firm commitment yet. In the meantime, the city will have to come up with other ways of finding revenue to pay for the project, as well as the maintenance and operations of the network once it is complete. This could mean raising property taxes, something the city has promised not to do.

But, why should Toronto residents pay for all of these transit plans when they benefit the GTHA region in its entirety? Maybe the more economically feasible form of revenue can be found in the use of tolls, something that everyone entering and driving in Toronto can contribute to.

If drivers were asked to pay a toll when using the Don Valley Parkway or the Gardiner Expressway, a lot of these funding problems could be solved. First of all, tolls would encourage more people to use the new transit network, thus freeing up the roads and alleviating the insane gridlock Toronto faces on a daily basis. Second of all, the money collected from these tolls could be funnelled directly into a transit fund — to be used in conjunction with the money collected from fares, ect. — to pay for the daily operations of these projects.

On Tuesday’s meeting, staff will be recommending that city council approve the current funding model and authorize further negotiations and agreements with the province, Metrolinx, and other agencies in order to gain extra funding for SmartTrack.

But, I don’t think Toronto should hold its breath. It’s time to come up with some realistic solutions to the transit-funding problem instead of hoping that other levels of government will bail us out. Embracing tolls is the logical solution — but is there someone brave enough to say it on the council floor?

The city has until Nov. 30 to finalize financial arrangements for SmartTrack to keep the provincial deadline.