The Toronto Transit Commission is facing a trio of critical challenges, with a decrease in ridership, reduced revenue, and escalating operational expenses compared to pre-pandemic levels in 2019. The TTC’s 2026-28 ridership growth strategy reveals that ridership is currently at approximately 82% of the 2019 levels, revenue has dropped to 92%, and operating costs have surged to 137%.
During a recent strategic planning committee meeting, the TTC board was briefed on initiatives to address the decline in ridership. However, projections indicate a potential budget deficit of $500 million in 2027, posing a significant financial hurdle for the transit agency. While the 2026 budget initially faced a shortfall, it was eventually balanced through a $1.4 billion subsidy from the city.
Josh Colle, the TTC’s chief strategy and customer experience officer, emphasized the direct correlation between ridership growth and operating costs, stating that a return to 2019 ridership levels would result in a 6.5% annual increase in costs. The need for additional spending on various programs in the ridership growth strategy underscores the challenge of stabilizing the TTC’s financial situation.
The TTC has been advocating for sustainable funding from the provincial or federal government to support its operations. In the short term, the agency is exploring measures such as transit signal priority, fare capping, and enhanced station wayfinding to improve service efficiency and reduce costs. Long-term plans include service enhancements like more frequent streetcar arrivals, albeit at a significant financial investment.
To enhance the overall transit experience, the TTC aims to incentivize commuters to opt for public transportation over private vehicles. Committee members are divided on the allocation of funds for ridership growth initiatives, particularly concerning routes affected by traffic congestion. Notably, bus trips on Jane Street experienced a 13-minute increase in travel time during rush hour from 2019 to 2024, necessitating potential fleet expansions to maintain service frequency.