At a time when the Société de transport de Montréal (STM) intends to cut its workforce to avoid cutting its service offering, the City of Montreal’s budget for next year provides for a 7.2% increase in its contribution. financial support to the Regional Metropolitan Transport Authority (ARTM).
This is the largest change in the City’s spending next year, when its budget will approach $7 billion, up $235 million from last year. Thus, the metropolis’ contribution to the ARTM, responsible for financing public transport in the greater Montreal region, will be increased by 48.4 million in 2023, to reach $715.6 million.
10.2% of the City’s spending will go to public transportation next year, compared to 9.9% in 2023.
However, the vast majority of this growth in funds granted to the ARTM will not go to improve the STM service, which has threatened in recent weeks to close the metro at 11 p.m., but rather to cover free transportation in common for seniors aged 65 and over. This will require expenditures of 34.3 million next year, an increase of more than 10 million compared to the amount allocated for this purpose last year in the City’s budget. The increase in expenses for this project is explained by the fact that this free service began on 1er July this year, while it will apply for the entire year in 2024, explains the City.
The growth of this funding from the City for public transport also includes “a new contribution for the blue line” of the metro, the extension of which is planned to Anjou by 2029, as well as expenses necessary to adjust the service of the STM with the commissioning of the Réseau express métropolitain (REM), whose first line between Brossard and Montreal has been in operation since the end of July. The City’s Director General, Serge Lamontagne, was unable to predict on Wednesday what part of this additional expenditure of more than 48 million will finance part of the STM’s shortfall in its operating budget. .
A reduced payroll
However, the publication of the City’s budget comes at a time when the STM has expressed fears in recent weeks of having to cut its service offering to cover a shortfall linked in particular to the drop in its ridership in recent years, marked by the pandemic. An internal memo notably mentioned the possible closure of the metro at 11 p.m. and a reduction in the service offering on certain STM bus lines.
The preliminary budget of the STM, including The duty obtained a copy, also mentions that the STM forecasts that it will be short $35.6 million to complete its 2024 budget, despite the efforts it has made to reduce its expenses by $50 million next year . To reduce its expenses without cutting service offerings, the STM intends to cut 120 corporate positions next year.
“It should be noted that the STM is still awaiting official confirmation for 2024 remuneration. We are continuing our discussions with all our partners to find renewed and viable long-term solutions for the financial framework. In addition, the STM is committed to continuing its efforts to reduce expenses in order to mitigate this financial risk,” notes the STM’s preliminary budget.
The City’s budget also provides for a borrowing forecast of $222.9 million to meet the needs of the STM, whose gross debt should continue to increase to exceed $2 billion in 2024.
The general director of the STM, Marie-Claude Léonard, will answer questions from the media at 11:30 a.m., on the sidelines of a conference by the Mayor of Montreal, Valérie Plante, on the City’s 2024 budget.
The ARTM should, for its part, table its budget on Thursday, a few weeks after the Quebec government tabled its final offer to compensate, according to its analysis, to absorb 70% of the public transport deficit in the province with a sum of 265 millions of dollars. However, this deficit is in reality higher according to the cities of the greater Montreal region, which are demanding an additional contribution of 128 million from the government to cover 75% of it.
More details will follow.