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From the Toronto Star:
Alliance reveals list of revenue-generators that could transform how the GTA moves
In one of the strongest arguments yet for road tolls and other money-raising methods, a coalition of civic leaders argues the GTA faces disastrous congestion and dire economic consequences without immediate action.
In a report to be released Monday, the Toronto City Summit Alliance is adding its voice to the need to get the GTA moving.
Tolls — no longer a dirty word among those seeking to get the GTA moving — and other taxes could raise as much as $1 to $2 billion annually for transit improvements, says the report, obtained exclusively by the Star.
Among its 12 proposed money-makers is one that would see a toll on 400-series highways of 10 to 20 cents per kilometre — adding $15 to $30 to the 150 km round-trip between Toronto and Barrie, for example.
Other proposals include:
- A regional gas tax of 10 to 20 cents per litre;
- A new levy of $1 to $2 a day per commercial parking space;
- A regional sales tax adding 1 to 2 per cent on the HST; and
- Special fees to bring your vehicle into designated areas, like downtown Toronto.
The report argues that the region faces disastrous congestion and dire economic consequences if it doesn’t move immediately to make the transportation improvements prescribed by Metrolinx’s $50 billion Big Move plan.
The report’s 12 money-making schemes, five of which would raise more than $1 billion a year, are aimed at transforming the region’s network into a more transit-, cycling- and pedestrian-oriented system.
But raising money isn’t enough. The taxes or tolls introduced must also reduce congestion, says the report, Time to Get Serious: Reliable Funding for GTHA Transit/Transportation Infrastructure.
“If you accept that there’s a problem, the only question is how you pay for it,” said Andrew Bevan of Sustainable Prosperity, who co-authored the report with Neal Irwin of the IBI Group.
Research and anecdotal reports all point to a growing recognition that the Toronto region is in trouble, said Bevan. The average commute is about 80 minutes, longer than 18 other major cities, including Los Angeles.
“It’s getting worse; people feel that, they see that. People understand, if you want to make long-term plans for improvement there’s a cost to that,” he said.
The report shows there are options to raising income and property taxes, said Bevan.
It suggests the best solution is probably a combination of more than one of the potential funding tools — tolls, taxes, high-occupancy toll lanes, a cordon around key employment districts like one in place in London, England, and an annual vehicle registration fee of $100 to $200 per car.
Research suggests tolls and congestion charges become more popular after they produce results, Bevan said.
The report also calls for a federal-provincial funding strategy whereby senior governments pay 25 to 50 per cent of transit operating and capital costs, but acknowledges that senior governments are unlikely to make the latter commitment in light of their own deficits. It also notes that such support is vulnerable to shifts in the political climate.
Statistics prove the need for urgent action — while the Toronto region increased kilometres of road lanes by 56 per cent between 1986 and 2006, vehicular demand in the same period rose by 106 per cent.
While transit grew by 18 per cent, it was outstripped by a 45 per cent increase in demand over those 20 years.
The report will be the subject of a July 14 round table discussion involving about 100 stakeholders. Their job will be to agree on the best funding ideas and figure out how to move the case forward with the public and governments, according to TCSA CEO Julia Deans.
The issue will be part of the agenda when the alliance holds its annual summit in February, which draws more than 600 business, social sector and academic leaders.
Ontario Transportation Minister Kathleen Wynne has said repeatedly that Metrolinx is expected to bring forward an investment strategy by 2013 to pay for the $40 billion in planned improvements for which there’s still no money set aside. But she has admitted that the economic climate and provincial deficit have brought new urgency to the discussion.
The TCSA report comes only weeks after the Toronto Board of Trade released a discussion paper on 16 potential revenue sources for Metrolinx.
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