Toronto's TTC experiences $17.4 million deficit, fare hike possible

Do you enjoy paying the $109 per month for your Metropass? Well, it is quite possible that TTC riders will have to fork out the extra money in order to offset the loss in revenues that Toronto's primary transit company is facing.

Toronto Transit Commission Chairman Adam Giambrone has said to the public that a fare hike is still too early to discuss but some TTC officials think it’s a real possibility, even as early as January 1, 2010. General ridership is up but more TTC users are purchasing the transferable monthly Metropass, which gives people the opportunity to share their pass with friends, family and others. According to CP24, the TTC projected 470 million plus rides in 2009 but using the cheaper monthly pass is causing lost revenues for Toronto’s transit system of three cents per ride, which results in a $17.4 million deficit. Steven Munro, TTC blogger, according to The Toronto Star, believes the revenue shortfalls are due to overspending and inaccurate financial projections. Also, TTC operating costs always outweigh revenues. Another problem for the TTC is loss of advertising revenues and cost increases. Vice-Chairman of the TTC knew that the Metropass was going to cost the TTC a large sum, “We anticipated that the Metropass … was going to cost us money, so that was already in the budget, but we didn't think it would be as successful as it has been.” Toronto Mayor David Miller froze all transit fares for 2009, which makes it highly possible that another fare hike could happen as early as the new year, “Everything is on the table for 2010, but that is always the case,” states Giambrone. Giambrone is currently asking for an extra $80 million from the city to pay for services that riders currently use and small improvements to its system. Nevertheless, according to CBC News, General Manager Gary Webster says the TTC will cancel some planned service extensions that it was going to offer riders and review the overtime that will possibly offset many of the losses incurred. The TTC is facing monstrous problems as of late and trying to battle counterfeit metropasses, bus wait times and the astronomical amount to purchase new streetcars, which is an estimated $1.2 billion.