August 12, 1998

To:Community and Neighbourhood Services Committee

From:Commissioner of Community and Neighbourhood Services

Subject:Transportation for Unemployed and Low Income Persons in Toronto

Purpose:

To provide a status report on the sub-committee convened to address the issue of free transportation for unemployed and low income people in Toronto.

Recommendations:

It is recommended that this report be received for information.

Council Reference/Background/History:

On January 15, 1998, Community and Neighbourhood Services Committee had before it a communication, dated December 17, 1997, from the General Manager of the Toronto Transit Commission (TTC), advising that the TTC responds to a request for information on free transportation for unemployed people in Toronto. The Commission approved forwarding a motion, together with a report from the Chief General Manager, to the Community and Neighbourhood Services Committee for consideration, calling for the establishment of a Task Force to address the issue of transportation for unemployed people in Toronto.

Independent deputations were made at the January 15, 1998 meeting of Community and Neighbourhood Services Committee on this issue by Mr. John McLennan of the Unemployed Workers Council, Ms. Beth Brown of the Daily Bread Food Bank, and Dr. Philip Webb of the Centre of Urban and Community Studies, University of Toronto.

The Community and Neighbourhood Services Committee recommended the formation of a sub-committee to consist of the three deputants, representatives of the Council Strategy Committee for People Without Homes and appropriate staff of the Community and Neighbourhood Services Department, with a request for a report back to this committee.

The three deputants met with staff of the Community and Neighbourhood Services Department and Councillor Layton's office. This report outlines the work of this sub-committee along with recommendations for the next steps.

Discussion:

Membership of the sub-committee includes representatives from a number of diverse but related groups including unemployed persons, peoples on social assistance, homeless and socially isolated persons. The shared feature of these groups is the experience of surviving on fixed, low or nonexistent incomes often limiting their ability to meet even the most basic of daily needs.

Access to public transportation was identified by the sub-committee as critical for people living in a large urban centre like Toronto. A TTC ticket is a valuable resource, assisting people in meeting the range of everyday needs such as getting to a job interview or job site, following through with a medical appointment, searching for housing or getting to a food bank. Transportation also helps people to stay connected to friends and family members who provide important social support during times of personal crisis.

While the members of the sub-committee shared the same goal of creating strategies to increase access to public transportation for people with low incomes, each participant brought their own perspectives and proposals to the table. Three distinct recommendations emerged from the discussions including a call for a transportation subsidy provided through social assistance, consideration of employer-provided transit benefits and expansion of the City's On the Move Pilot Project.

Transportation Subsidy by Social Services:

For the majority of people on social assistance, transportation is essential for an effective job search. Under Ontario Works, participants who are involved in various parts of the Community Participation and Employment Support component are eligible for transportation assistance and other benefits associated with their participation in the program.

Currently, transportation expenses are available to clients in self directed job searches only on a case by case basis to allow clients to attend documented job interviews. As a significant number of people enrolled in Ontario Works fall under this category, the representative from the Daily Bread Food Bank recommends the provision of transportation assistance for people engaged in a self directed job search equal to that allowed under the Community Participation and Employment Support streams of Ontario Works.

The Social Services Division has raised concerns in previous reports that current allowances are inadequate in allowing people to meet their full range of basic needs, including transportation. Unfortunately, implementing transit subsidies for the entire caseload is not feasible. Social assistance is an 80:20 cost shared responsibility between the province and the municipality, with the province determining benefit levels and entitlements. As a result, subsidizing transportation expenses would require a significant financial commitment from both the municipality and the province. Increased expenditures beyond those currently budgeted would also require provincial approval which is unlikely.

The Province has clearly defined its direction with respect to welfare reform which includes a distinct shift from general to targeted funding. This in turn restricts the discretionary ability of the municipality to provide supplementary benefits such as transportation assistance. A decision by Toronto to assume 100 percent. funding responsibility for any local supplementary benefits is further complicated by the issue of pooling social assistance costs with the GTA.

Employer-Provided Transit Benefits:

In deputations to the Toronto Transit Commission during the Fall of 1997, the UWC called for the provision of free transportation for unemployed persons citing transportation as essential for finding and maintaining employment. The Commission referred this group to Community and Neighbourhood Services for consideration as a social service issue. The UWC is interested in exploring transportation assistance initiatives for people with limited incomes. They would be willing to work together with other groups and various levels of government to develop viable options.

In addition, the representative from the Unemployed Workers Council calls on Toronto to explore the provision of non-taxable, employer-provided transit benefits for municipal employees and their families. The rationale for establishing this type of transit policy included setting an example for senior levels of government and the private sector, increasing TTC ridership, guaranteeing a significant revenue source for the TTC, and providing environmental benefits through the reduction of carbon monoxide emissions from automobiles.

The Planning and Transportation Committee of the former Metro Council, in September 1997, adopted recommendations calling for a "Pro-Transit Strategy" which included a similar initiative of a private sector, non-taxable, employer-provided transit benefits. The reconstitution of a Sub-Committee on Pro-Transit Initiatives by the New City of Toronto Council was also recommended to pursue these types of strategies. The Urban Environment and Development Committee is in the process of reconvening this sub-committee, therefore, further exploration of this option is expected by this committee.

Enhancement of the On the Move Pilot Project:

In July 1997, the Metro Advisory Committee on Homeless and Socially Isolated Persons produced the report, "On the Move: Transportation Issues for Homeless and Socially Isolated Persons." This study concluded that access to public transportation is critical for both the prevention and resolution of a homeless experience.

As recommended in this report, in October 1997, the former Metro Council approved funding for a one year, $50,000.00 pilot project which would augment the number of TTC tickets distributed by a network of agencies serving homeless and socially isolated persons. The TTC provided a one percent. discount on the tickets for this project. An evaluation of the pilot project will be conducted upon its completion in December 1998.

The sub-committee member, Professor Webb, recommends expanding the pilot project, i.e., increasing the number of tickets agencies can distribute to homeless people, with funding provided by Community and Neighbourhood Services through a dedicated purchasing agreement with the TTC. Transit use would focus on off-peak hours and bulk purchase discounts of up to 30% would be explored to maximize the number of tickets for distribution.

Previous discussions between the Commissioner of Community and Neighbourhood Services and the General Manager of the TTC have identified concerns on the part of the TTC that the provision of discount fares for groups such as homeless people would constitute a social service thereby confusing its public transit mandate. Subsidies are further challenged by ongoing cuts to the TTC budget. The use of special fare media would also require the recipient of the benefit to show an identification card every time they used the TTC which raises the issue of stigmatization.

With respect to off-peak hour discounts, the TTC maintains that in lieu of a special pass the discount would need to be extended to all users of the system. Unlike many other urban transit systems, the TTC has a relatively high proportion of ridership during off-peak times (60% of all rides are made during off-peak hours). As a result, any price discount would likely incur a revenue loss if provided to all users.

The Role of the Community and Neighbourhood Services Department:

Toronto recognizes the critical nature of unemployment, poverty and homelessness in Toronto as evident by the considerable amount of human and financial resources targeted toward these issues. The municipality, through the Community and Neighbourhood Services Department and the Urban Planning and Development Services Department, play a wide range of policy, planning, research, service delivery and funding roles.

The importance of access to public transportation for people with low incomes is clear. The Community and Neighbourhood Services Department has consistently been challenged with developing viable strategies for addressing this issue. The current fiscal reality effectively restricts the Department's capacity to provide transit subsidies for people on social assistance.

In response to the issue of transportation support for people with low incomes, Toronto has implemented the "On the Move Pilot Project." While this is a targeted program, it is directed to the most vulnerable members of our community - homeless and socially isolated persons. Participating agencies are located across Toronto and provide services to a wide range of people including youth, adults, singles, families, men, women, aboriginal people, immigrants and refugees and people with mental health issues. One criticism of the project is that people must request tickets from a service provider rather than have the resource given to them directly. However, until such time as broad transit subsidies are feasible through income maintenance programs, this remains the most viable and accountable system of distribution.

The pilot project will be evaluated upon its completion at the end of 1998. Once the results of the evaluation are compiled, directions as to the development of future strategies for increasing access to public transit by low income people can be revisited.

Conclusions:

Access to public transportation is critical for people who are unemployed or otherwise existing on a low income. A TTC ticket is a valuable tool, allowing someone to search for work, housing, reach food banks, attend health care appointments and maintain important social relationships that help people to cope with periods of personal crisis.

Finding solutions to this issue continues to be a challenge for both the municipality and the communities affected. Financial constraints of the Toronto Transit Commission and the City of Toronto limit the range of viable options at this level. The Community and Neighbourhood Services Department has instituted a one-year transportation assistance pilot project for homeless and socially isolated persons as a result of the "On the Move" research. An evaluation of the pilot project will be completed upon its conclusion on December 31, 1998. It is therefore recommended that strategies for providing transportation assistance to low income persons be further explored once the results of that evaluation have been collected and analysed.

Contact Name:

Susan Shepherd, phone: 392-5398/fax: 392-8492

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Commissioner of Community and Neighbourhood Services