From the Climate Action Team: What is 50-50 Transit Funding—And How Much Might it Cost the Province?

There’s been a lot of talk about the need for the Province to restore the 50-50 transit funding agreement. But what does this raffle-sounding policy actually mean? And how much might it cost the Province?

The 50-50 funding agreement was a partnership between the Province and municipalities that operated transit systems, under which the Province would cover half of operating costs for conventional and accessible transit, after service revenues (mostly from fares) were deducted. Operating costs are the day-to-day expenses of running the transit system, primarily the salaries and benefits of the workers who operate, maintain, clean, and administer it. It can be easier for municipalities to attract funding from higher levels of government for capital projects, such as buying buses and building transit garages, but this infrastructure risks underuse without sufficient operating funding.

That’s where 50-50 funding comes in. Think of 50-50 like how governments cost-match donations to the Red Cross during a disaster: it encourages spending, doubles the effectiveness of each dollar, and provides extra visibility to an important cause. It’s also similar to how the federal government partners with provinces and territories to match funds for infrastructure, such as housing and hospitals.

Read the entire post here.