Rise In Metropass Users Costs TTC Millions
Posted September 23, 2009 1:31 pm.
This article is more than 5 years old.
There are rumblings about a TTC fare hike now that the transit commission has revealed it’s tight for cash.
More people than ever are riding the rocket – a projected 473 million this year – but because many are using cheaper, transferable Metropasses, the TTC is facing a $17.4 million deficit.
The TTC loses about three cents per ride when passengers use the pass rather than tokens or cash. The transit body is therefore netting an average of $1.77 per trip instead of the expected $1.80. Adding to the problem are a decrease in advertising revenues and an increase in sales of senior and student fares.
Fares account for 60 per cent of operating revenue, with the rest coming from the three levels of government.
Some of the shortfall may be covered by money saved from the summer’s civic workers’ strike – likely more than $20 million according to some figures.
But the TTC is also being asked to do its part by cutting spending and overtime hours and rethinking hiring needs. Currently, there are no plans to cut service.
Although Mayor David Miller promised not to raise fares in 2009, some politicians are saying a hike is necessary.
The monthly Metropass is cheaper than tokens, transferable and eligible for a federal tax credit.
