The solution envisaged by Quebec to fill the public transport deficit would cause cities’ bills to jump by more than a third in 2024, Montreal, Laval and Longueuil denounce in unison. The Quebec metropolis alone should find no less than 234 million next year, we learned The Press.
What there is to know
The government does not currently intend to commit to repaying more than 20% of the deficit of transport companies.
The cities, which would pay a good part of the remaining bill, are worried.
For Montreal alone, this would represent an expense of 234 million, more than snow removal.
“The government proposal would mean a 35% increase in the financial contribution of municipalities to public transport in the 2024 budget compared to the 2023 budget, which represents an unacceptable increase for municipal elected officials, without improving services,” write the mayors and mayor of Montreal, Laval and Longueuil in a letter sent Friday to the Minister of Transport, Geneviève Guilbault. The mayors of Mercier and Deux-Montagnes also co-signed it.
The document estimates that the cities of Greater Montreal would have to pay 324 million more. Their contribution to the Regional Metropolitan Transport Authority (ARTM) would thus increase from 931 million in 2023 to no less than 1.255 billion.
At least this is the conclusion reached by the elected officials of Greater Montreal when reading the government’s proposal. This week, Mme Guilbault had offered transport companies funding of 502.8 million, which represents barely 20% of the industry’s deficit of 2.5 billion. The rest would be made up by “optimization” efforts of 365 million, but above all by the municipalities. A counteroffer from the industry is expected next week.
For Montreal, one of the biggest payers of the ARTM, this increase would be staggering. Its current contribution, set at 667 million in 2023, would increase to some 901 million: a dazzling increase of 234 million.
This sum would represent a significant unforeseen expense for the metropolis. For comparison, clearing snow from Montreal’s streets costs around $190 million per year. In fact, an increase in its contribution for public transportation of 234 million could even result in an increase of approximately 5% in Montrealers’ current tax bill.
Quebec “appropriates” a tax
In their letter, Valérie Plante, Catherine Fournier and Stéphane Boyer find it difficult to explain that, while the cities’ contribution would jump from 31.7% to 41.2%, “the share of the government contribution to the financing of public transport in Greater Montreal would go from 33.9%, in 2023, to 21.3%, in 2024.”
PHOTO MARTIN TREMBLAY, LA PRESSE ARCHIVES
The Mayor of Montreal, Valérie Plante
Elected officials are also concerned that Geneviève Guilbault’s proposal “appropriates the tax on vehicle registration voted by the CMM [Communauté métropolitaine de Montréal] for the purposes of the operating deficit while elected officials wish to use it for the development of services.
To arrive at a deficit of 2.5 billion over five years, a figure significantly lower than the 3.7 billion of the Association of Urban Transport of Quebec (ATUQ), the cabinet of Mme Guilbault in fact counts income from the registration tax and the REM (Réseau express métropolitain).
“Your proposal to allocate the tax voted by the CMM council on vehicle registration to the deficits of public transport services has the effect of depriving the elected representatives of the CMM of the financial leverage that they wish to retain to ensure development public transportation in their territory. The government proposal goes against this will of the CMM elected officials,” denounce the three municipal elected officials.
Speaking of a “significant setback in terms of sustainable mobility”, they deplore in passing “having to discuss this issue […] so close to the adoption date of our municipal budgets,” scheduled for November. “We had, however, tabled a proposal for discussion in May to avoid this situation”, underline Mr.me Plante, M. Boyer and M.me Fournier.
In Geneviève Guilbault’s office, we respond that public transportation remains under municipal jurisdiction. “The objective remains the same: to propose, jointly with transport companies and municipalities, a lasting vision of financing public transport. We must all make an effort for the good of Quebecers. Minister Guilbault will not negotiate in public. We are still waiting for the proposal from the stakeholders,” explains the communications director, Maxime Roy.
“More ambition”
The transport companies of Quebec and Montreal called on Friday the Legault government to have “more ambition” in terms of sustainable mobility. According to them, several cities are heading straight towards significant service reductions.
“We are calling on Prime Minister Legault as well as the Minister of Finance, Eric Girard, to ensure that we have more ambition in terms of public transportation. In the current situation, it is essential,” insisted Friday the president of the Réseau de transport de la Capitale (RTC), Maude Mercier Larouche.
She was notably accompanied by the president of the Société de transport de Montréal (STM), Éric Alan Caldwell, who could have to reduce its service by around 15% if the initial proposal from the Minister of Transport, Geneviève Guilbault, goes forward. . This would bring the STM back to the same level as in 2006.
“Of course, we will do our best. Of course, we seek to optimize and reduce our expenses. […] But one of the basic principles of eco-taxation is to reward good behavior. Cities that want to maintain and advance the service offering must be rewarded,” indicated Mr. Caldwell.
7%
The exit of the transport companies came at the time when the 2023 Sustainable Mobility Policy (PMD) Forum was being held in Quebec City on Friday. It is this regulation that dictates the annual increase target for the level of service across the province. This is currently at 5%, but several municipalities are calling for it to be increased to 7%. A priori, the new PMD 2023-2028 action plan should be announced this spring.
Source: Metropolitan Community of Montreal