Big Move, Next Wave, Investment Strategy: What next?

After much public debate and consultation, Metrolinx has released their Investment Strategy for funding The Big Move, their long-term plan for coordinated, integrated transportation and transit in the Greater Toronto and Hamilton Area.

The Transit Infrastructure Deficit in the Greater Toronto & Hamilton Area has been discussed extensively, culminating in the Metrolinx Investment Strategy. This sets out a range of revenue tools and the program for investment in major transit infrastructure, and also an initiative to access matching funds for local transportation and transit projects.

Many municipalities across the GTHA are wondering what their response should be, and so we have created a summary outlining the most important details.

What are the tools and what happens to the money?

Metrolinx is proposing four revenue tools, designed to raise $2 billion/year in revenue:

• HST increase of 1%: This would raise about $1.3 billion/year, with a rebate for low-income households. Dedicating sales tax revenue to transit is a common tactic in North America – examples include Los Angeles, Central Ohio, Atlanta, Dallas, Phoenix and Illinois.
• Fuel and gasoline tax increase of 5c/litre: Increasing the existing provincial fuel tax would raise about $330 million/year. The total tax paid on fuel in the GTHA would be similar to that in Vancouver or Montreal.
• Business parking space levy averaging 25c/space/day: The levy would be based on current value assessment, and cover all non-residential off-street parking. High-density areas typically have better transit service and higher land values, and businesses there would pay more. The levy would raise about $350 million/year.
• Development charges increased by 15%: Existing restrictions on recovering transit costs associated with new development would be removed, allowing municipalities to implement additional development charges. The higher charges would raise about $100 million/year.

The revenue raised from these tools would support local and regional investment in transit and transportation:

• 25% would go towards municipal-level programs and plans: supporting local transit, roads and bridges (~$300m/year); improving controlled access highways and areas around interchanges (~$100m/year); and enhancing multimodal and alternative transportation projects (~$100m/year).
• 75% would go towards regional rapid transit: 53km of LRT, 8.6km of subway, and 59km of BRT over and above currently funded programs. The proportion of people living and working within 2km of rapid transit would roughly double from 27% to 54% (estimated)