Ontario Boosts Transit Funding Across Province Doubles Municipal Share Gas Tax

By -

Ontario is boosting support for nearly 100 cities and towns across the province, providing them with reliable, long-term funding to improve and expand their local transit systems and offer more travel options for commuters and families.

Premier Kathleen Wynne and Transportation Minister Steven Del Duca were at York Region Transit’s Richmond Hill facility today to announce the new investment.

The province has heard directly from people who are frustrated by their daily commute and from municipalities [Municipalities are often also incorrectly called “County”- though they are legally incorporated as a super-city Ed.]  that are struggling to meet their transit needs. In response to these concerns, starting in 2019, Ontario will be increasing funding for local transit through an enhancement to the existing gas tax program, doubling the municipal share from two cents per litre to four cents by 2021. There will be no increase in the tax that people in Ontario pay on gasoline as a result of the enhancement to the program.

Cities and towns receiving the new funding are able to plan for and make major infrastructure upgrades, buy additional transit vehicles, add more routes, extend hours of service, implement fare strategies and improve accessibility.

Ontario recognizes that commuters need reliable transit options before revenue-generating measures such as road tolls are implemented. For example, the ongoing GO Regional Express Rail project will not be completed and in service before 2024. That is why the province is not supporting plans for municipal road tolls at this time. This new investment, along with Ontario’s $31.5-billion transit and transportation investment across the province, will support more buses in cities like Thunder Bay and Windsor, new LRT lines in Waterloo and Ottawa, and GO Regional Express Rail in the Greater Toronto and Hamilton Area, including SmartTrack in Toronto.

Supporting stronger public transit systems is part of our plan to create jobs, grow our economy and help people in their everyday lives.
QUOTES

” People in communities across Ontario can’t afford to waste time stuck in traffic — we all need better options to get to work and home to our families sooner. This substantial boost to funding for local transit in cities and towns across the province will help them make significant improvements that will have a big impact on people’s day-to-day lives.”
– Kathleen Wynne
Premier of Ontario

” We’ve heard loud and clear from municipalities that they need more sustainable funding for public transit to keep up with the demand to provide more service. By modernizing Ontario’s gas tax program we are helping municipalities improve their local transit service so people can easily get where they need to be.”
– Steven Del Duca
Minister of Transportation
QUICK FACTS

Funding will increase to 2.5 cents per litre in 2019–20, 3 cents in 2020–21 and 4 cents in 2021–22.
This year the province committed $334.5 million in gas tax funding to 99 municipalities [Municipalities are sometimes incorrectly called “County”- though they are legally incorporated as a super-city Ed.] . This amount is expected to increase to about $401.3 million in 2019–20, $481.5 million in 2020–21 and $642 million in 2021–22.
Ontario made its gas tax program permanent in 2013 to provide a stable source of funding for municipalities.
One bus takes up to 40 vehicles off the road and keeps 25 tonnes of greenhouse gas emissions out of the atmosphere each year.
Research shows that every $100 million of public infrastructure investment in Ontario boosts GDP by $114 million, particularly in the construction and manufacturing sectors.
LEARN MORE

Gas Tax Funding for Municipalities
Ontario.ca/BuildON

Available Online

Disponible en Français

L’Ontario accroît le financement des transports en commun des villes de l’ensemble de la province
Plus d’options pour les déplacements et amélioration du transport en commun local pour les navetteurs et les familles

27 janvier 2017 09h35

L’Ontario accroît son soutien à près de 100 villes de la province en leur fournissant un financement à long terme stable qui favorise l’amélioration et l’expansion des transports en commun locaux et offre un plus grand nombre d’options aux navetteurs et aux familles.

La première ministre, Kathleen Wynne, et le ministre des Transports, Steven Del Duca, se sont rendus aujourd’hui à la gare de transports en commun de la région de York à Richmond Hill pour faire l’annonce de ce nouvel investissement.

La province a directement recueilli les propos de navetteurs frustrés et de représentants de municipalités qui éprouvent des difficultés à répondre à la demande en services de transport en commun. Pour donner suite à ces préoccupations, l’Ontario augmentera à partir de 2019 le financement qu’il accorde aux transports en commun locaux et bonifiera son programme actuel de financement par la taxe sur l’essence en doublant la part municipale pour la porter de deux cents le litre à quatre cents d’ici 2021. Cette bonification du programme n’entraînera pas de hausse de la taxe provinciale sur l’essence.

Les villes qui toucheront ces nouveaux fonds pourront planifier et entreprendre des rénovations d’importance à l’infrastructure, l’achat de véhicules de transports en commun supplémentaires, l’ajout de circuits, la prolongation des heures de service, la modification de leur structure tarifaire et l’offre de services plus accessibles.

L’Ontario reconnaît que les navetteurs ont besoin d’options de transports en commun fiables, avant même que des mesures génératrices de revenus soient mises en oeuvre. Par exemple, le service régional express de GO Transit est en chantier et ne sera pas opérationnel avant 2024. C’est pourquoi la province ne soutient pas de plans pour installer des péages municipaux en ce moment. Ce nouvel investissement, qui s’ajoute à l’investissement de la province de 31,5 milliards de dollars dans les transports en commun et les transports à la grandeur de son territoire, soutiendra l’achat d’un plus grand nombre d’autobus dans des villes comme Thunder Bay et Windsor, la construction de nouvelles lignes de train léger sur rail (TLR) à Waterloo et à Ottawa, de même que le service régional express de GO Transit dans la région du grand Toronto et de Hamilton, dont le SmartTrack à Toronto.

Le soutien permettant l’amélioration des réseaux de transport fait partie de notre plan visant à créer des emplois, à stimuler notre économie et à améliorer la vie quotidienne de notre population.
CITATIONS

« Les habitants des collectivités ontariennes ne peuvent se permettre de perdre du temps dans des embouteillages — nous avons tous besoin de meilleures options pour nous rendre au travail et rentrer à la maison afin d’y retrouver notre famille plus rapidement. Cette hausse substantielle du financement affecté au transport en commun local aidera les municipalités à apporter des améliorations appréciables qui auront des effets marqués pour les gens dans leur vie de tous les jours.»
– Kathleen Wynne
première ministre de l’Ontario

« Les municipalités nous ont clairement fait comprendre qu’elles ont besoin d’un financement plus durable pour le transport en commun afin de satisfaire à la demande accrue en services. C’est en modernisant le Programme de financement par la taxe sur l’essence que nous aiderons les municipalités à améliorer leurs services de transport régionaux, de telle sorte que les gens pourront se déplacer plus facilement.»
– Steven Del Duca
ministre des Transports
FAITS EN BREF

Le financement augmentera à 2,5 cents le litre en 2019-2020, à 3 cents en 2020-2021 et à 4 cents en 2021-2022.
Cette année, la province s’est engagée à verser 334,5 millions de dollars en financement par la taxe sur l’essence à 99 municipalités. Ce montant devrait augmenter jusqu’à environ 401,3 millions de dollars en 2019-2020, 481,5 millions de dollars en 2020-2021 et 642 millions de dollars en 2021-2022.
C’est en 2013 que l’Ontario a rendu permanent son Programme de financement par la taxe sur l’essence pour ainsi offrir une source de financement stable aux municipalités.
Un seul autobus permet de retirer jusqu’à 40 véhicules de la route et réduit de 25 tonnes par année les émissions de gaz à effet de serre de l’atmosphère.
Des recherches démontrent que chaque tranche de 100 millions de dollars d’investissement dans l’infrastructure publique de l’Ontario fait croître le PIB de 114 millions de dollars, tout particulièrement dans le secteur de la construction et le secteur manufacturier.
POUR EN SAVOIR DAVANTAGE

Financement par la taxe sur l’essence pour les municipalités
Ontario.ca/ONrenforce

Disponible en ligne

Available in English

2 Comments to Ontario Boosts Transit Funding Across Province Doubles Municipal Share Gas Tax

  1. We need our fair share of the gas tax back

    Ontario needs a law that will ensure every municipality will get a fair share of the gas tax every driver in the province pays at the pumps.

    Currently, the Gasoline Tax Act permits only those municipalities that have a rapid transit or public transportation system to get a tax rebate. As a result, only 99 out of 444 municipalities receive money from the gas tax even though every resident in the province pays into it.

    In Ontario, the provincial excise tax on gasoline at the pump is 14.7 cents/ litre. The federal rate is 10 cents/litre. After the 13 per cent HST tax is added – the famous tax on a tax – we pay a combined 27.9 cents per litre. And, now we also must add the January 1, 2017, cap and trade tax oil refineries are passing down to their customers at the pumps – an increase of 4.3 cents a litre.

    Canada has instituted rules ensuring the federal gas tax is shared across the country —on a per capita basis. If the federal government realizes communities need to be treated fairly, why does the Ontario government not see it the same way?

    Furthermore, earlier this year Premier Wynne announced the government will be increasing the rebate by two cents a litre to those select municipalities with public transit, resulting in an additional $300 million going to urban ridings, to the detriment of rural ridings.

    Last week government members voted down, yet again, my colleague MPP John Yakabuski’s Private Member’s Bill which would have brought equality to Ontario’s rural municipalities by ensuring they all share in a portion of the gas tax their residents pay.

    Here’s MPP Yakabuski during debate: “I say to my colleagues on the other side, who may not live in rural Ontario, that our roads and streets, back roads, side roads, county roads, and main streets in our villages and towns are our public transportation system.”

    Toronto subways are important, but so too are bridges, culverts, airports, railway lines, shipping docks and pipelines – all important infrastructure requiring new build and maintenance crucial to the efficient and cost-effective movement of goods and services in Ontario.

    One of the long-standing infrastructure challenges in rural Ontario has been the need for the many bridges and culverts that cross ditches, streams and creeks.

    All told, [in my constituency] Haldimand County maintains 1,500 kilometres of roads, and 266 bridges with a span over three meters, in addition to hundreds of culverts.

    Norfolk has 2,400 kilometres of road, 115 bridges and another 123 structures spanning more than three metres, plus hundreds of culverts.

    For instance, at one time not that long ago, there were bridges on every concession that crossed Norfolk’s Big Creek. Concession Road 7 has been closed at the bridge for years. More recently, the Concession A bridge was shut down, as well as the Marburg bridge on Black Creek.

    In the past, municipalities had the option of using Bailey bridges – pre-engineered structures that could be dropped into place. Now, new regulations require separate engineering, design and building of a bridge for each situation.

    Such bureaucratic regulatory creep, coupled with long distances, challenging terrain and sparse populations present an argument for the return of fuel taxes paid by our northern and rural municipalities.
    MPP Toby Barrett.

  2. A dollar of gas tax does not equal a dollar of road toll Provincial announcement a major setback

    The following is a statement from Jan De Silva, President & CEO, Toronto Region Board of Trade, on the Province of Ontario’s decision to deny Toronto’s Gardiner Expressway and Don Valley Parkway tolls:

    “Cities across Canada face growing demand for infrastructure investment. Late last year, Toronto City Council overwhelmingly endorsed a plan to use its existing legal authority to access an own-source revenue source to pay for highways and transit—an important first step to sustainably fund and finance the infrastructure our residents, visitors and businesses require.
    Regardless of whether you like tolls or not, Toronto’s municipal government must be able to reliably plan for its future—a key reason the Board was a strong supporter of the introduction of the City of Toronto Act. The Province’s decision last week undermines Toronto’s ability to fund and finance its essential infrastructure. Its actions also highlight the growing and unsustainable gap facing Toronto—municipal revenues are insufficient to meet its provincially designated service and infrastructure responsibilities. For Toronto, this includes the unusual burden of operating and maintaining two regional highways which would normally fall under a province’s jurisdiction.
    While on the surface, the contribution of an additional two cents of gas tax revenue to the City may appear to replace toll revenue, the reality is much different. Cities can only finance big infrastructure projects from own-source revenue and not provincial transfers such as a gas tax; therefore, a dollar of gas tax revenue does not equal a dollar of toll revenue.
    For the City of Toronto, toll revenue of $200-300 million per year would have enabled it to raise debt of $3-5 billion—making significant inroads into its infrastructure funding gap. In this case, unfortunately, $170 million of gas tax diverted from the Province to the City is just $170 million per year; a sum that pales in comparison to the $33 billion infrastructure funding gap facing Toronto. More concerning, the City could also lose the gas tax revenue entirely if a future provincial government chooses to reduce these transfers down the road.
    Our members remain concerned the long-term problem not being addressed is ensuring Toronto has the financial control it requires to manage the infrastructure and services for which it is being held accountable.”

    Founded in 1845, the Toronto Region Board of Trade (the Board) is the Chamber of Commerce and World Trade Centre for Canada’s largest urban centre. Its mission is to act as a catalyst for, and with, the business community. With 12,000 members, the Board plays an important role in elevating the quality of life and economic competitiveness of the region. The Board’s 2020 vision is to make Toronto one of the most competitive and sought after business regions in the world. Learn more at bot.com and follow us at @TorontoRBOT

Leave a Reply

Your email address will not be published.