Cash fare hike possible as TTC sees red

The red rocket is in the red, and it looks like fare hikes are inevitable.

The TTC budget committee met on Tuesday afternoon to discuss how to deal with a $95 million 2016 operating budget shortfall.

TTC CEO Andy Byford emerged from the meeting, saying fare hikes are likely. “I would love to be able to present a budget that doesn’t require a fare increase, but realistically, I don’t think that’s going to happen,” he told reporters.

Byford said the TTC is still waiting to find out how much of a subsidy it receives from the city.  “The bigger the subsidy, the smaller the gap, therefore the smaller the need for a fare increase.”

According to a report posted on its website, the committee is considering eight fare scenarios, including a 25-cent hike on cash fares.

The other scenarios in the report include a five-cent increase on Metropasses, and alternatively, no fare increases at all. According to the report, a 10-cent fare hike would bring in between $36-40 million.

TTC board member, Coun. Shelley Carroll, warned that fare hikes are practically unavoidable and prices may have to be hiked over the next several years.

“It’s fair to say that we are going to have a fare increase,” she said. “It may have to happen every year for a few years.”

“We are hoping its a slightly smaller rate increase than last year, but the bottom line is we’ve added services to the system, we’ve made it a better ride, and there’s a cost to that.”

Below is a breakdown of the possible fare scenarios. Click here to view it on mobile.

Earlier this year, cash fares went up by 10 cents in order to help balance the 2015 budget. The cost of a Metropass went up from $133.75 to $141.50.

Cash fares have remained unchanged since 2010 when they were raised from $2.75 to $3. Fares for seniors and students also went up from $1.85 to $2.

When the budget committee met in July, city staff were asked to provide a report on possible fare scenarios that included a fare increase across the board, an increase in cash fares or an increase in the cost of Metropasses. Staff were also tasked to look at whether to freeze fares.

Staff were also asked to include how various fare scenarios could impact revenue and ridership, as well as provide ways to improve service on the TTC.

In the report, the TTC says its customer satisfaction survey showed riders with lower income levels are more likely to use tokens or Metropasses versus cash. It says the lower income group is “not disproportionately impacted by cash fare changes.”

In terms of ridership as of Aug. 1, the TTC says around nine per cent of riders pay by cash, while close to 21 per cent use tokens. Around 39 per cent of riders use a Metropass. Others use Presto cards or weekly passes.

The TTC is also considering a single cash fare, such as $3.25 for adults, seniors and students. Staff say a single cash fare simplifies the fare structure, works with the PRESTO migration, and is consistent with other GTHA transit agencies.