the feasibility of implementing an off-peak pass similar to the one used by Ottawa/Carleton transit.
This report responds to these requests.
It is difficult to determine the actual number of jobless people in Metro Toronto. Statistics Canada estimates the number of unemployed to be approximately 120,000 individuals. However, the actual number of jobless is likely higher than this because this estimate does not include two groups of people: (i) a potentially large number of 'discouraged' workers who are no longer looking for work and are not classified as unemployed; and (ii) individuals who are jobless and/or homeless and are not captured by the Statistics Canada survey. Currently, there are approximately 185,000 people on General Welfare Assistance in Metro Toronto, although this number includes children, individuals considered 'unemployable', and people classified as unemployed by Statistics Canada.
A number of programs are currently provided by Metro Toronto to meet the needs of various disadvantaged groups within Toronto. From a transportation perspective, Metro Community Services purchases more than $1.2 million worth of tickets annually from the TTC. Programs are in place at Metro to provide these tickets directly to individuals on General Welfare Assistance when a specific transportation need is justified. The eligibility criteria for receiving this transportation benefit is established by Metro. Individuals who are jobless, but not on General Welfare Assistance, do not receive TTC tickets directly; however, these individuals may be eligible to receive financial assistance from other programs which could then be used to purchase TTC fare media.
The current programs and policies to support the needs of the jobless in Toronto have been implemented recognizing that the primary responsibility for meeting the needs of these and other disadvantaged groups rests with the municipal government, and not the TTC. As such, the determination of who is eligible to receive special assistance, what the level of this support is, and the overall funding for such programs is a social policy issue that should be the continuing responsibility of the new City of Toronto.
Anne Golden, President of the United Way, recognizes the need to separate the role of the TTC from other social agencies. In a response to "On the Move", a report of the Metro Advisory Committee on Homeless and Socially Isolated Persons, she states that in terms of transportation issues for the homeless, the "...TTC should be a public service, not a social service."
The TTC acknowledges, however, that public transit does have a role to play in enhancing the overall quality of life within the new City of Toronto. The TTC will continue to provide tickets for purchase by social agencies for distribution to those in need. The TTC is also willing to provide Metropasses at a cost of $76 per adult pass (compared to the regular price of $83), consistent with the conditions of the Metropass Discount Plan.
The use of existing TTC fare media to provide transportation benefits to the jobless is recommended. This will ensure that recipients of the benefits can travel on the TTC and remain anonymous. The use of special fare media, as has been suggested in the past, would require the recipient of the benefit to show an identification card every time they boarded a TTC vehicle; users would not be able to remain anonymous.
The importance of allowing users to remain anonymous was demonstrated in Hamilton. In the early 1980's, the Hamilton Street Railway system was directed by their regional council to make available a special pass for the unemployed, at a 40 percent discount from the price of a regular adult pass. During the three-month trial period, pass users were required to show identification when they rode the transit system. However, many of the individuals using the pass refused to show identification when boarding a vehicle, arguing that to do so was demeaning. After the three-month trial period, the program was discontinued due to low usage and concerns about the operational difficulties of the program.
The TTC has also been asked to review the feasibility of implementing a discounted off-peak pass to improve the affordability of transit for those without jobs. For these individuals to remain anonymous, a special pass could not be used; the off-peak discount would need to be provided to all users of the system.
Off-peak discounts are usually provided to encourage ridership during periods of the day when ridership is low, and where excess capacity is available on the system. A price discount may be offered because it is hoped that new riders will be attracted to the system and there will be sufficient new revenue from these riders to offset the discounts provided to existing off-peak riders.
The TTC is different from many transit systems, in that a relatively high proportion of its riders travel during off-peak periods; approximately 60 percent of all TTC rides are made during off-peak periods compared to less than 50 percent during the same periods at other major transit properties. As a result, any price discount offered during off-peak periods would likely incur a loss of revenue since the discount would be provided to a potentially large number of current off-peak users. It would take a significant gain in new riders to offset this revenue loss.
In addition, a key operational problem of implementing an off-peak fare is the increased potential for fare disputes between customers and drivers/collectors about the use of off-peak fare media during peak periods. Ottawa (OC Transpo) had an off-peak system in place for several years for tickets and cash. However, this program was discontinued in 1996 to reduce the level of fare disputes and to simplify the fare structure. An off-peak pass was discontinued in 1993 for essentially the same reasons.
Overall, any policy changes that would require the TTC to provide the jobless in Toronto with free transportation or provide an off-peak discount to all riders would result in potential revenue losses for the TTC. From a financial perspective, the TTC is in no position to subsidize either of these suggestions. As recently as 1992, the TTC received $245 million in operating subsidies from its funding partners and recovered 66 percent of its operating expenses from the farebox; for 1998, the level of subsidy has been reduced by $94 million to $151 million, and the projected revenue/cost ratio is 81 percent. If the TTC were directed to provide discounted fare media to the jobless, a special subsidy would be required to offset any revenue losses. If such a subsidy were not provided, any revenue losses would have to be covered by an increase in TTC fares for other riders.
Chief General Manager
03-58-58
