Faced with a shortfall of nearly $78 million for 2023, the Société de transport de Montréal (STM) could have to make service cuts in the course of next year if it does not obtain the funding required to fill its deficit. In the first months of 2023, however, it intends to maintain a service offer similar to that of 2022, with a few adjustments.
Inflation and structural problems with public transit funding are hurting the STM’s finances. Next year, the STM’s budget will reach $1.7 billion, an increase of $128.7 million or 8.2%.
“At the dawn of 2023, we are facing a difficult economic context. We have a slower return of traffic than expected. It is therefore certain that there is immense pressure on the finances of the STM and on our donors, ”explained the director general of the STM, Marie-Claude Léonard, Monday, while presenting the budget. 2023 of his organization. The increase in the budget is attributable in particular to the indexation of remuneration and assets in a context of inflation and to the increase in operating expenses.
Last year, the STM had to deal with a shortfall of $43 million, which it made up for during the year thanks to an increase in the contribution of the Regional Metropolitan Transport Authority (ARTM) of $25 million and to a reduction in expenditure of 18 million.
This shortfall will therefore increase in 2023 and, for the moment, the STM does not know whether the discussions undertaken with the ARTM, the Government of Quebec and the City of Montreal to fill it will bear fruit.
Adjustments
In the meantime, the STM has decided to maintain a level of service roughly similar to that of 2022 for the first months of 2023. However, it intends to make service adjustments on the bus lines by reducing the frequency of certain lines. where traffic is less important, such as services to the city center, and by increasing service on more efficient lines, such as lines 197, 24 and 467. According to the STM, 80% of lines will not be affected by service changes.
In the metro, some adjustments have also been made, but these are “surgical” modifications, argued Mme Leonardo. For example, on the orange line, the shortest frequency between two trains will remain, but it will last less during rush hour, explained the director general.
These measures may have to be reviewed during the year if the STM is unable to make up for its shortfall. “We had a possible choice, which we rejected, and which was to balance the budget and propose cuts in services to our citizens. […] The idea of moving to a lower level of service, we can’t resolve it, ”said the chairman of the STM board of directors, Éric Alan Caldwell. The fact remains, however, that a “fundamental discussion” will have to be held on the financing of public transport.
Last week, Radio-Canada mentioned planned service cuts of 3.7% for buses and 4.8% for the metro compared to 2022. This was one of the scenarios considered that the STM , but who was dismissed, however indicated Marie-Claude Léonard.
On the investment side, the STM is setting aside 20.4 billion for the period from 2023 to 2032. Projects for the next few years include the extension of the blue line, accessibility in the metro, the electrification of the bus fleet and the replacement of MR-73 metro cars.
” Mismanagement “
The opposition at City Hall deplores the fact that the STM has unveiled a deficit budget for a second consecutive year. “The worst part of this mismanagement is that the administration doesn’t even have the honesty to tell Montrealers where it will cut services. All she is doing is waiting for money from Quebec while negotiations with the government are in a dead end,” commented the mayor of Montreal North, Christine Black.
Trajectoire Québec believes that emergency government assistance will still be needed next year. However, a longer-term solution will have to be found, believes its general manager Sarah V. Doyon. “We’re clearly not getting there anymore. The shortfall is only getting bigger and I’m not sure we can fix it with emergency aid. »