Barrie’s share of new provincial transit funding is going straight to the bottom line.
The Ontario government is providing $150 million in additional funding to help municipal transit systems address the financial impacts of the COVID-19 pandemic.
The city’s share is $574,035 — based on an allocation of $40,000 plus 2018 ridership — and it will be applied to Barrie Transit’s operating deficit. A $3.2-million shortfall in fare revenue, or 47 per cent less, is anticipated this year.
“The COVID-19 pandemic has had a huge impact on our transit ridership and revenue,” said Brent Forsyth, Barrie’s director of transit and parking strategy. “Early in the pandemic, Barrie Transit had experienced a reduction in ridership to as low as 25 per cent of its regular ridership."
As of last week, ridership was approximately 35 to 40 per cent of pre-COVID ridership, he added.
Lower city ridership stems from the continued impacts of the pandemic and Georgian College delivering its courses remotely. Reduced transit service and fuel savings offset the shortfall by $600,000, said city staff, but in order to meet the 0.82 per cent year-over-year target in the 2021 operating budget, Barrie Transit would need to receive an additional $2.5 million in federal and provincial funding.
The Ontario government is providing $650 million for municipal transit systems in 2021. This includes the $150 million in additional funding from the province — on top of the $2 billion total Safe Restart Agreement (SRA) funding — to aid local transit systems.
Announced last July, the SRA contained provincial and federal funding to support municipal transit systems with operating costs like vehicle maintenance and employee wages, revenue losses from the pandemic and related costs such as installing driver protection barriers.
Barrie received $6.6 million in municipal funding and an additional $2.6 million for transit, for a total of almost $9.2 million, to address priority 2020 pandemic operating costs and pressures. Any excess funding is to be put into a reserve to support COVID-19 operating costs and pressures that might occur this year.
Barrie got an extra $1.3 million in December, in general SRA funding, and the province says Barrie’s share for Phase 3 funding is up to $2,487,486 — including the $574,035 in new funding.
During pandemic’s peak, ridership dropped up to 90 per cent of normal levels for some of Ontario's transit systems, which resulted in significant financial impacts for municipalities.
“This support will help ensure there is reliable transportation for people to get to work or pick up essential items,” said Caroline Mulroney, Ontario’s minister of transportation, noting the $150-million funding will help municipalities with lost revenue from low ridership and for additional costs to transit systems.
