CUTA submits recommendations to Finance Canada for 2024 federal budget
The Canadian Urban Transit Association (CUTA) has submitted recommendations to Finance Canada for the 2024 federal budget.
The federal government plans to introduce the C$3 billion (US$2.2 billion) Permanent Public Transit Fund in 2026 to support public transit infrastructure expansion and to ensure state of good repair for existing infrastructure. CUTA urged the government of Canada to introduce a C$500 million (US$370 million) component of the fund in the 2024 budget and to open intake and funding commitments in 2024 for the remainder of the fund, ahead of the program’s planned 2026 start date. CUTA underscored the urgent infrastructure needs facing Canada’s transit agencies, as they contend with aging infrastructure and rising demand spurred on by Canada’s rapidly rising population.
“Public transit is the backbone of sustainable urban development and the federal government has a vital stake in maintaining and expanding Canada’s urban mobility infrastructure,” said Marco D’Angelo, CUTA president and CEO. “With the government’s collaboration and leadership, we can ensure a resilient, safe and reliable public transit system that meets the needs of Canada’s growing communities.”
CUTA says 2023 saw an increase in incidents of violence and social disorder on transit. In response, the association urged the federal government to establish an application-based transit safety and security fund, with a minimum of C$75 million (US$55.6 million) annually for two years. CUTA notes the funding will help support transit agencies with the specific expenditures needed to prevent, combat and respond to safety and security incidents on their systems. Transit agencies need urgent support for staffing, training, station enhancements, public awareness campaigns and other safety and security measures.
The association notes public transit systems collectively faced unfunded operational shortfalls estimated at more than three quarters of a billion dollars in 2023 that threaten their ability to serve communities effectively. Without government support, transit systems risk service cuts or fare increases at a time when affordability is a chief concern. Communities across Canada risk heightened road congestion, commuter dissatisfaction and less frequent and reliable transit services.
In addition to CUTA’s federal budget recommendations, the association is calling on all levels of government to engage in a national conversation on public transit operational funding.
