TransLink maps out deep cuts
Transit system losing $2.5M a day as ridership plummets over 80%
TransLink will begin planning this week for drastic cuts to Metro Vancouver’s transit system, which is losing $2.5 million per day amid the COVID-19 pandemic, after learning that financial aid from federal and provincial governments is not forthcoming.
With most transit users staying close to home, as directed by health officials, system-wide ridership is down more than 80 per cent.
That, combined with a 60 per cent drop in fuel tax revenue, a 70 per cent drop in parking tax revenue, and the removal of fares on buses to promote physical distancing between riders and drivers, means TransLink’s revenue — more than half of which comes from fares — is projected to be down $70 million, or 51 per cent, for the month of April. The average monthly loss for the next six months is expected to be $75 million, with the worst-case scenario projecting losses of $93 million per month.
“It’s certainly becoming very, very clear that we’re running out of time on the finances,” TransLink CEO Kevin Desmond said over the phone on Monday.
“With this crisis, we are seeing a very, very significant drop in revenue, and we expect that drop in revenue to be fairly long-lasting, even as we get into the recovery.
“That kind of revenue loss is not sustainable. Period.”
TransLink’s board of directors and the Mayors’ Council will hold emergency meetings this week to discuss options for “very, very significant” service reductions in order to balance the budget, and Desmond said TransLink is talking with employee unions to work out how reductions and layoffs would unfold.
The cuts would likely take place in May, and Mayors’ Council chairman Jonathan Coté said if they go ahead, “The transit system we have here in Metro Vancouver will not be recognizable. It will be a dramatic reduction in service.”
TransLink began cutting service last month, and has reduced bus service by 15-20 per cent, SeaBus by 50 per cent, West Coast Express by 40 per cent and SkyTrain by about 17 per cent. Capacity is also reduced on buses to promote physical distancing. Once the dire financial situation became apparent, TransLink and the Mayors’ Council began lobbying the federal and provincial governments for some kind of financial aid to keep the agency afloat.
After nearly two weeks of “very active discussions,” Coté said they received word on Good Friday from the offices of the prime minister and premier that TransLink should expect no support funding from upper levels of government, which Coté said puts them in the position of having to plan for dramatic service cuts.
“We’re disappointed that they’ve indicated at this point in time that public transit is a low priority, but we hope that they can reconsider and recognize both during this crisis, but even more importantly during recovery, that public transit and a good transportation system is going to be vital for our major cities in Canada,” Coté said.
Because it’s a public body, TransLink doesn’t qualify for government supports like the 75 per cent federal wage subsidy.
Desmond said the amount TransLink would need varies depending on the scenario, but $200 million to $250 million would preserve service now and for when recovery begins.
On top of that, TransLink would still reduce spending and use available cash. TransLink expects to lose $600 million to $700 million this year.
Coté said the Mayors’ Council understands the pressure that the federal and provincial governments are under, but the plan is to continue funding discussions, because any amount that arrives in the next month could help mitigate cuts that would take effect in May.
“Having said that, we do need to, given the situation we’re in, get the wheels in motion for dramatically deconstructing our transit system here in Metro Vancouver, so the sooner we get word and support, the less pain and impact it will have on residents,” Coté said.
In an emailed statement, the B.C. premier’s office said it takes TransLink’s financial issues seriously, and is waiting to find out more about the service reductions that will be proposed and their potential impacts.
“Until that review has occurred, we can’t comment directly on TransLink’s proposal — but that review will proceed urgently and we’re committed to finding a balanced solution to the challenges facing TransLink,” the statement said.