On July 17, 2024, the federal government released information on the Canadian Public Transit Fund (CPTF), which will disperse $3 billion per year for public and active transportation capital projects starting in 2026/27. While this fund demonstrates significant support for new capital projects (e.g., bus replacement, LRT extensions, bus garages), it does not provide ongoing support for operations funding to maintain or enhance current levels of service (e.g., hiring more drivers, running more bus routes). We are concerned that this fund is missing the mark on what Edmonton and other Canadian municipalities need right now to significantly improve their transit services and rider experience.
Capital investments through this fund have the potential to drive the development of our future transit services and allow Edmonton to complete critical projects, which we love! However, capital projects are only part of what it will take to improve public transit in Edmonton and across Canada. This program does not provide any funding for transit operations, meaning that while we may see new LRT extensions and an expansion of our bus fleet, the ongoing costs of operating a transit system, such as paying for drivers, utilities and fleet maintenance, will be left up to municipalities. So Edmonton may get the funds to build a new LRT extension, but then may struggle to cover the cost of hiring new drivers to run it! With municipalities across Canada seeing significant transit revenue gaps, and Edmonton in particular receiving nearly $17 million less than expected in transit revenue, any transit fund that is not looking to directly and immediately address this pressing issue is missing a crucial component in supporting Canadian public transit.
In addition to the lack of operating funds, we have concerns regarding the slow speed at which the program is getting rolled out. While the time period allows for transit agencies to plan and prepare applications, there are many projects across the country that need funding today. Delaying funding for at least 2 years leaves our communities with infrequent or crowded buses or trains for years longer, impacting people’s day-to-day lives.
While there are gaps and deficiencies in this program, we also want to recognize that there is great potential in Edmonton to utilize this extra funding to reduce overall operating costs, address issues in our system, and also expand our transit infrastructure and LRT routes. For example, Edmonton’s bus fleet is in dire need of replacement and expansion; back in March a report from City Operations identified a shortfall of $240 million for bus fleet replacement over the 2023/2026 budget cycle. New buses would mean less time and money spent on maintenance, allowing those operational savings to be reinvested to address service gaps. In addition, capital investments in transit priority measures may have similar cost saving effects. If buses can complete their routes faster, fewer are needed per route meaning more buses for underserved areas of the city. Increased capital funds could also be utilized to maintain infrastructure plans in the face of increasing costs; the Capital Line South extension has already undergone multiple scope reductions, impacting the amount of trains that will run on the line and maintenance facility capacity. We hope to see municipalities in the Edmonton region receive funding from the CPTF for these types of smart and impactful projects that help improve the resilience and future capabilities of our transit system.
Provincial and federal governments have not generally provided operating funding for public transit on a consistent basis, preferring to support large capital projects, and leaving municipalities to fund the day-to-day operations. This program, if implemented, will be impactful and positive for public transit in Canada, but transit riders, advocates, and anybody invested in creating more accessible, sustainable, and connected cities, needs to keep pushing the higher levels of government to get involved in every aspect of public transportation funding if we want our systems to live up to their full potential.
If you would like to read more about this project, some reactions from other advocacy groups across the country, or want to learn more about any of the projects and initiatives we covered in this statement, check out the links provided below.
Canadian Public Transit Fund Backgrounder