Province cool to picking up tab for low-income transit pass in Ottawa

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The provincial government is hesitant to cough up $3.3 million for OC Transpo to subsidize a low-income transit pass, putting pressure on council to decide if the rebate should be part of the 2017 city budget.

Council voted in May to ask the province to cover the costs of a deeply discounted pass for low-income customers.

Postmedia asked the province this week if it would give the city money to pay for a low-income pass, as requested by council. The transportation ministry said it doesn’t have a say on the city’s day-to-day transit service, including the structure of fares.

“While the province funds municipal public transit systems, it is not involved in their daily operations,” ministry spokesperson Kwok Wong said in an email. “Municipal public transit systems are responsible for all aspects of their operations, which includes setting fare structures, and have the ability to introduce low-income transit passes.”

Wong said cities receive gas tax funding from the province and the money can be used at their discretion, including for subsidies on transit passes.

Coun. Stephen Blais, chair of the transit commission, said the city received a response from the premier in June referring the issue to the ministers of transportation and community and social services. Blais said he looks forward to speaking with the ministers about how the province can help the city’s working poor.

Transpo estimates 31,000 transit customers in Ottawa have incomes below the low-income cutoff. The department says 22,000 customers already receive some kind of transit discount, such as a seniors pass, community pass for people with disabilities, a u-pass for students or a transportation-specific Ontario Works benefit. The remaining customers need to pay full price for transit if they aren’t accessing support programs through other social agencies.

Ottawa wouldn’t be the only city interested in provincial support for low-income transit customers. The issue has also attracted attention in Toronto and more municipalities are testing out low-income transit passes, such as the Niagara Region and Mississauga.

Meanwhile, the provincial government in Alberta recently made a big investment in transit for low-income customers, leading to a significant discount in Edmonton and an even steeper rebate for the poorest customers in Calgary.

Linda Lalonde, chair of the Ottawa Poverty Reduction Network, likes the approach in Alberta and she wants to at least see a pilot project for a low-income pass in the City of Ottawa.

Lalonde said the city needs to see past the cost of the discount.

“I think we need to sell the benefit side of the ledger more strongly and clearly than what we have done up until now,” Lalonde said.

The idea of a low-income transit pass will almost certainly be part of the city’s 2017 budget discussions this fall.

Council would need to decide if property taxes should help pay for another transit fare rebate. Property taxes already backstop about $16 million in transit discounts. Without using tax revenue, a discount would need to be absorbed by other fare classes, such as seniors and children.

The $3.3 million, if the city can somehow find it, would provide a 62-per-cent discount for low-income customers.

Council also asked the province to consider a mandatory transit and transportation benefit for people who receive assistance through Ontario Works or the Ontario Disability Support Program.

Grace Mfumuangani, a spokesperson for the Ministry of Community and Social Services, said eligible social assistance recipients get help with travel costs for medical appointments and they could also be eligible for transportation costs related to employment. The province has a working group to advise the government on reforming social assistance, Mfumuangani noted.

jwilling@postmedia.com

twitter.com/JonathanWilling

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