NDP pressed for share of Green Line funding
Province’s new carbon tax could be used to help cover cost of Green Line
The NDP government needs to pony up cash to help pay for Calgary’s Green Line LRT now that the city has submitted an official funding request, says a local transit lobby group.
Both the federal government and the city have promised to fund two- thirds of the 46- kilometre light rail transit project, which could now cost between $ 4 billion and $ 5 billion, excluding additional financing costs.
While the NDP have voiced support for the project, it has refused to commit any dollars until it received a formal request.
“We now have a provincial government that has stated throughout that they’re in support of the project,” said Jeff Binks, president of LRT on the Green.
“The one reason that they’ve kept coming back to for not making a consideration for funding has now been taken away.”
Last month, Calgary mayor Naheed Nenshi submitted a letter to Alberta Infrastructure Minister Brian Mason, outlining the scope of the Green Line LRT, previous commitments by the city and Ottawa, and the crucial role the province has played in building Calgary’s LRT system — one of the most well used in North America — since it first opened in 1981.
“This conversation is an ongoing one,” Nenshi said in an interview.
“I raised it at cabinet last week and I’m confident they understand our needs and are being thoughtful about the best way to fund it.”
The former Conservative government pledged $ 1.53 billion to the project just weeks before losing the recent federal election to the Liberals. During the election campaign, Liberal Leader Justin Trudeau said his government would stand by that funding commitment.
City council had previously committed $ 520 million in tax room over 10 years to the project. In December, they extended that pledge to $ 1.56 billion over 30 years to cover the city’s portion.
In its October budget, the NDP pledged to increase capital spending by $ 4.5 billion to $ 34 billion over five years to build and modernize public infrastructure, including $ 330 million over three years for public transit projects.
“While this ($ 330 million) is insufficient to fully fund one- third of the Green Line, we are optimistic that the funding can support our short- term cash flow requirements and could potentially be the first few years of a longer- term funding partnership,” Nenshi said in the letter.
“A longer- term funding commitment with innovative financing could address potential concerns regarding the province’s near- term financial position,” he continued.
Premier Rachel Notley has said the NDP’s new carbon tax, which could generate $ 6 billion by 2018, could be used to cover the province’s portion of the megaproject.
“That’s certainly a possibility,” Mason said Wednesday.
“The premier has been quite clear that projects that lessen the carbon footprint of the province are potentially eligible for funding from the revenue of the carbon levy.”
The Green Line would add 46 kilometres to the city’s existing 58- kilometre light- rail transit system, and could serve as many as 456,000 Calgarians living along the corridor, greatly reducing traffic congestion and creating thousands of new construction jobs.
The new line would run south from North Pointe, through downtown to Seton in the deep southeast, and include 27 stations.
With the mayor’s request now in hand, Mason said government officials can begin the evaluation process and consider what options the government has.
“It’s quite a bit of money, we knew that it would be,” he said.
“But supporting transit and supporting Calgary and the metro region is an important priority.”