TTC’s 2026 budget includes fare freeze, requests City contribute $1.4 billion

The TTC has approved its 2026 budget, which includes asking the City to contribute $1.4 billion in order to boost service levels while freezing fares for the third straight year.

The transit agency has proposed a 6.8 per cent increase in its operating budget to just over $3 billion for the coming year, with $1.54 billion coming from revenue, while $1.48 billion would come from the City.

The TTC says it plans to increase service to pre-pandemic levels, as well as implement a fare-capping program, which will replace the monthly pass.

The TTC is also dipping in to it’s rainy day fund to the tune of $35 million. With a civic election in the fall, some see this TTC budget as electioneering.

“It’s nice to knock on doors in an election year and say service increase, no fare increase and fare capping, those are things people need. But the amount of red ink that runs through the TTC budget is terrifying,” said Coun. Dianne Saxe.  

Transit advocates are applauding the budget, saying the fare freeze and the introduction of fare-capping are “tangible wins” for transit riders which will mean more savings and more predictable costs.

“Fare capping and a fare freeze are big steps forward, but riders also need more frequent, reliable service to make transit a true alternative to driving,” said TTCriders executive director Andrew Pulsifer in a release.

“Choosing to invest in affordability sends a clear message that transit is a public service, not a luxury. This decision will help retain riders, support ridership growth, and make Toronto a more affordable city to live in.”

The budget will go before City Council in February.

TTC Board Chair Jamaal Myers says he is also looking to make the transit agency more accountable when it comes to how it spends money allocated by the City.

Under the current funding model, the City hands the TTC a cheque and tells them to run the service. Myers is looking to change that model, which he says is outdated and not transparent.

“We’re not looking to defund the TTC, but we are looking to say ‘We are giving you X amount of money, here’s the on-time performance targets we want to see, here’s the reliability targets we want to see,'” said Myers. “What that looks like if the TTC doesn’t reach those targets, I don’t know.”

The TTC says it found $87 million in cost reduction during its budget process, a figure that Coun. Brad Bradford questioned, calling it a wish list that was invented in Excel.

“What the staff will typically do is put together a wish list of all the things that they would like to see, and then they remove those and call those cost savings. That is not an actual reduction in money being spent or money being asked for from taxpayers; it’s all hypothetical stuff that’s been drawn up in Excel spreadsheets during the budget process. It’s not real,” said Bradford.

“What I would like to see from the TTC is a clear plan to increase the ridership.”

The TTCs new soft spoken CEO disagrees.

“I’m not sure what spreadsheets Councillor Bradford is referring to, but the tangible benefits of what we’ve seen in the last year are coming through,” said Mandeep Lali.

There was no additional update on a possible opening for the Eglinton Crosstown LRT during Wednesday’s meeting, except that they are not going to wait until the line is launched to address issues, such as signal priority, which is what is currently happening with the recently opened Finch West LRT. Myers says the TTC is currently working with Metrolinx to address these issues before they crop up.

Alan Carter contributed to this report