TTC Board approves 2024 operating budget and 2024-2033 capital budget plan

The Toronto Transit Commission (TTC) Board approved the TTC’s 2024 operating budget. The C$2.6 billion (US$1.95 billion) budget represents a 7.5 percent increase over the 2023 budget and combines operating budgets for both conventional and Wheel-Trans. The budget features a freeze on fares, continuation of increased service and a continued investment in system safety and cleanliness.  

Among other highlights, the 2024 budget: 

• Freezes TTC fares at 2023 rates in recognition of the impact current economic conditions have on its customers 
• Fully funds the unplanned in-year service increases made in 2023 (to 95 percent from 91 percent) in response to increased and changing demand 
• Funds a further service increase to 97 percent by September 2024 
• Increases Wheel-Trans service hours to meet the rising demand, estimated to reach 84 percent of pre-pandemic levels by year-end 2024 
• Invests more than C$28 million (US$21 million) in the TTC’s Community Safety, Security and Well-Being program 
• Addresses substantial inflationary pressures for things such as vehicle parts, service contracts and escalating employee benefit-related expenses 
• Invests in increased maintenance capacity for Line 2, as well as for new and existing streetcars to be delivered in 2024 
• Funds operating and maintenance costs for the opening of Lines 5 and 6 in 2024, as well as full-year operations on the Line 3 SRT bus replacement service 
• Envisions 2024 fare revenues based on 80 percent of pre-pandemic ridership levels by year-end 

 “The TTC is the lifeblood of this city, and it needs to be properly funded if it is to truly be the better way,” said Mayor of Toronto Olivia Chow. “Frequent, safe and affordable transit is something I have committed to supporting for the people of Toronto and this budget makes improvements in all of those areas.” 

“This budget will ensure the transit needs of our customers and employees are protected and enhanced,” said TTC Chair Jamaal Myers. “I’m confident that with this budget, we can start to return transit service to where it was before the pandemic while laying the groundwork for further improvements. I want to thank TTC finance staff for their hard work preparing this budget and our front-line employees for delivering this important service every day.”  

“TTC customers are coming back quicker than we expected and this budget allows us to meet their needs for the next year,” said TTC CEO Rick Leary. “This budget balances our need to deliver safe and reliable service while addressing the increased operating costs associated with inflation and new transit lines that we need to manage.” 

The TTC Board also approved the C$12.4 billion (US$9.3 billion) 2024-2033 capital budget plan. 

Highlights include: 

• Fully covering the city/TTC’s one-third share for the subway car procurement to ensure readiness to proceed with the procurement of 55 subway trains, should matching funding from the government of Canada be available 
• Advancing accessibility projects at Warden and Islington stations, and capacity improvement projects (including Bloor-Yonge Capacity Improvements and Line 1 and Line 2 Capacity Enhancement projects); 
• Providing ongoing funding for 60 new streetcars and associated infrastructure projects at Hillcrest and Russell and 336 hybrid buses, 340 electric buses and charging infrastructure based on revised delivery schedules 
• Enhancing cybersecurity initiative 

The TTC Board also considered a revised Capital Investment Plan report. 

The report shows that despite significant capital/state-of-good-repair investments, there’s a growing backlog estimated to reach C$8.2 billion (US$6.2 billion) by 2033, with unmet capital needs anticipated at nearly C$17.9 billion (US$13.4 billion) over 10 years and C$35.5 billion (US$26.7 billion) over 15 years. 

The report notes that investing in the TTC’s future remains crucial for the city’s vitality, offering economic, environmental and social benefits, not only for Toronto, but also for the Greater Toronto Area, Province of Ontario and Canada at large. 

The board also heard a presentation from the University of Toronto’s Mobility Network highlighting the benefits of investing in public transit. Key economic metrics included in the Value of Transit Investment Interim Findings report show investment in TTC operations and capital works translate into: 

• Every dollar invested would add an additional C$0.81 dollars (US$0.61) in GDP, generating a value-added impact resulting in an increase in profit, taxes and spending on labor 
• Every dollar invested would create the equivalent of C$2.14 (US$1.61) of economic activity (Gross Output) 
• Every C$1 million (US$750,650) invested creates 13 new jobs 

 The interim report notes transit also brings numerous social equity and environmental benefits. 

All budget reports can be found at TTC’s website.