Toronto Transit Commission Fare Hike Likely By 2010

November 5, 2009 5:26 a.m. EST

Toronto, Ontario (AHN) - When the Toronto Transit Commission board meets on Nov. 17, among the key points on their agenda would be a possible fare hike in 2010.

The meeting was previously scheduled Nov. 25, but was moved earlier by eight days. It will be held at the Toronto City Hall at 1 p.m.

The TTC used to increase its fares yearly by 10 cents per ride, but this year Toronto Mayor David Miller promised not to increase the fare as Canada went through a recession. The 10 cents fare hike adds about $20 million to TTC's operating income.

Because of higher operating cost, a projected 2 to 3 percent inflation rate, rising fuel prices and more accident claims, the TTC forecasts its 2010 operating budget will have a $100 million deficit. TTC chair Adam Giambrone said the transit will likely ask the city for an additional $80 million operating subsidies for next year since he has ruled out service reductions due to the continued increase in number of TTC passengers.

However, by hiking fare, Giambrone admits the TTC risks losing passengers. Giambrone estimates a 10-cent hike would translate into two million rides lost yearly.