Transit fares are increasing in several Canadian cities, prompting discussions on the necessity of reevaluating public transportation funding. Calgary recently raised fares from $3.80 to $4 per ride, while Ottawa approved a 10-cent increase to $4.10. Edmonton, Victoria, and Vancouver also saw fare hikes earlier this year.
The escalating fares reflect the growing financial strains on transit systems. Rising energy, maintenance, and labor costs, coupled with declining gas tax revenues due to the rise of electric and energy-efficient vehicles, are key contributing factors. Moreover, transit agencies are still grappling with the aftermath of the COVID-19 pandemic, where both ridership and fare revenues plummeted. Although ridership has started to recover, it remains below pre-pandemic levels.
Experts highlight that Canada faces unique challenges due to urban sprawl and low population densities, making it difficult to sustain profitable transit routes. As fares increase, affordability becomes a concern for many Canadians, impacting their ability to access transportation within cities.
Lawrence Frank, a professor at the University of California, stresses the adverse societal impacts of fare hikes and the need for a revamped assessment framework that considers health and social benefits. He emphasizes the importance of public transit beyond its economic value, advocating for a more holistic approach to evaluating its worth.
Advocacy groups are pushing for stable funding for public transit, recognizing it as an essential service. However, transitioning to new funding models faces political hurdles. Jeff Casello from the University of Waterloo suggests exploring dedicated revenue sources like road tolls to support transit improvements, drawing inspiration from successful international models.
To address affordability concerns, subsidizing costs for low-income riders is essential. Some cities have implemented strategies like fare capping to mitigate financial burdens on regular users. Additionally, the concept of free public transit, as seen in select smaller municipalities, is gaining traction as a means to enhance community accessibility.
Despite global challenges with transit profitability, Canadian cities face additional hurdles due to urban layout and population distribution. Experts emphasize the need for sustainable funding models to support public transit as a vital service that benefits society at large.