Duncan's little cut at the LRT
http://communities.canada.com/OTTAWACITI...an-s-little-cut-at-the-lrt.aspx#comments
By DAVID REEVELY THU, MAR 25 2010 COMMENTS(1) GREATER OTTAWA
Filed under: transit, LRT, Queen's Park
The Ontario budget is postponing $4 billion worth of transit projects the province was going to pay for in Toronto. On the one hand, less transit is bad, but on the other hand Toronto's deal was so absurdly sweet that as a non-Torontonian I have difficulty weeping over it. Meanwhile, I am assured by Ottawa Centre MPP Yasir Naqvi's people, Ottawa's $600 million is safe — it's basically booked as spending in the last fiscal year, not the one they've just presented a budget for. There are undoubtedly ways they could have sucked it back, but they aren't doing it.
One fly:
The province will also scrap a program that paid up to one-third the cost of replacing city buses in all municipalities, including Ottawa, saving $50 million per year.
This was a partial replacement for an old provincial policy of routinely funding relatively small capital purchases, such as new buses. Now, says Finance Minister Dwight Duncan, cities will have to buy new buses out of gas-tax transfers. Which means basically it's just a straight cut to a regular transfer payment, since cities typically spend that money on transit already.
In Ottawa, the plan was to spend gas-tax money for many years to come on LRT plan. The amount of money we're talking about, maybe $10 million a year, isn't a fortune, but it's not nothing, either. Certainly enough to require a rejig of the LRT plan's financing, a cut somewhere else to make up the difference, or a one-per-cent tax hike.