Calgary city council is facing a multi-million-dollar revenue shortfall for Calgary Transit due to the escalating costs of the low-income transit pass program. The revenue gap this year is $33 million, with $19 million coming from administering subsidized transit passes. Council is being asked to approve $13 million in operating funds and a one-time allocation to cover the shortfall for the program. If additional funding is not secured, options such as service reductions, fare increases, and changes to services may need to be considered.
The costs to administer the low-income transit pass program have risen to $52 million, as approximately 40% of all transit riders use the subsidized pass. The program uses a sliding scale system based on income, with prices ranging from $5.80 to $57.50 per month. Earlier this year, the provincial government temporarily cut funding for the program, but later reinstated it. Mayor Jyoti Gondek and other councillors are pushing for the province to contribute more to the program, arguing that it is not solely the city’s responsibility to provide low-income supplements.
Ward 10 Coun. Andre Chabot and other councillors are also advocating for additional support from the federal government. Chabot believes that pressures on the city’s budget are partly due to expanded immigration targets set by the federal government. Hybrid work arrangements have resulted in fewer sales of monthly passes, further contributing to the funding gap. Shortfalls in Calgary Transit’s budget have been a recurring issue since the pandemic, prompting experts to call for a discussion about alternative funding avenues outside of taxes and fares.
Transit consultant David Cooper suggests looking at funding models used in other cities, such as allocating a percentage of on-street parking revenues and gas taxes to support transit service. The budget situation has led Calgary Transit to make sacrifices, including shelving plans to expand night bus service and frequency across the network. However, four-car CTrains are set to return on a limited basis starting in December. City council will begin debating the budget and making amendments to address the funding shortfall in Calgary Transit.
In conclusion, Calgary city council is facing a significant revenue gap for Calgary Transit due to rising costs associated with the low-income transit pass program. Options to address the shortfall include service reductions, fare increases, and changes to services if additional funding is not secured. Pressure from inflation, population growth, and reduced monthly pass sales are adding to the funding challenges. Calls for increased financial support from the provincial and federal governments, as well as exploring alternative funding models, have been made to address the budget shortfall. The ongoing budget deliberations will determine the future of Calgary Transit’s services and funding.
