Fredericton mayor part of growing call for provincial funding for transit costs

As the City of Fredericton considers significant improvements to its public transit system in the near future, the mayor is looking at the next provincial government as an important partner in funding those upgrades.

Long relegated as the sole responsibility of New Brunswick's municipalities, Kate Rogers said it's time for the province to help cities fund public transit if it's really serious about addressing climate change and the rising cost of living.

"There's an affordability crisis that we're seeing across the nation and New Brunswickers are feeling it.

"And we know that when people look at their own personal budgets, housing is asignificant expenditure, as is transportation. And delivering a robust transit system ...is to me, a very effective way to help with affordability," she said.

A 2017 report, by the province's Economic and Social Inclusion Corporation, cited a need for the provincial government to step up and help fund public transit in orderto improve workforce participation and reduce New Brunswickers' costly dependance on automobiles.

WATCH | Aging buses, increasing ridership: here's what N.B. municipalities are up against:

The challenges facing public transit in N.B. cities

11 days ago

Duration 2:39

Marco D'Angelo, president of the Canadian Urban Transit Association, breaks down the barriers Saint John, Miramichi, Moncton and Fredericton face when it comes to public transit.

But seven years later, there's been little mention of public transit so far amongleaders of New Brunswick's three main political parties, who are now inthe second full week of a provincial election campaign.

The rising cost of living, health careand the housing shortage are issues that have taken centre stage ahead of the election, scheduled for Oct. 21.

Green Party pledges help for transit

CBC News asked the three party leaders about their stance on providing funding to municipalities to help with transit costs.

Green Party Leader David Coon said a government under his leadership would help fund a portion of every municipal transit agency's annual operating budget.

"[Transit] is a public service. People need it to get to work, to get to school, to visit family, and soit's appropriate for both levels of government to be sharing in its support," Coon said, in an interview.

In a follow-up email, campaign spokesperson Jill Mersereau said the Green Party's platform will pledge to cover 15 per cent of the transitoperating budget.

Liberal Leader Susan Holt was unavailable for an interview. In an email statement, she said her party's pledge for fiscal reform would help municipalities better deliver services and that under her leadership, the province would take advantage of federal funding for transit improvements.

Progressive Conservative Leader Blaine Higgswas unavailable for an interview, said spokesperson Bob Fowlie, in an email.

During his time as premier, Higgsgarnered criticism in 2020 for not takingadvantage of a federal program aimed at injecting millions of dollars into municipal transit agencies struggling to cover costs as COVID-19 measures sent ridership numbers plummeting.

In the end, his governmentprovided transit systems in Moncton, Fredericton and Saint John with $1.6 million from a broaderCOVID relief fundfrom Ottawa something other provinces didn't have to do.

Raising fares not straightforward solution, says advocate

Fredericton isn't the only municipality hoping forhelp.

Transit systems in the cities ofSaint John, Moncton and Miramichiare also on board with seeing provincial funding for operating costs, said Marco D'Angelo, president and CEO of the Canadian Urban Transit Association, which advocates nationally on behalf ofmunicipal transit agencies.

"Today we've arrived at a time where buses are full, where folks aren't being able to be accommodated on every bus," said D'Angelo, noting that ridership levels are at all-time highs.

"And so this is the challengethat the cities across New Brunswick are facing, and it goes to the need for the province of New Brunswick to address and support the expansion of transit service."

As it stands, the revenue generated through fares only covers about 35 per cent of theoperating costs, on average, with the rest paid for by property tax revenue, D'Angelo said.

That leaves municipalities in a tough spot, where in order to improve service,they either need to cut other services, raise property taxes, or increase fares.

D'Angelonoted that New Brunswickers are already dealing with rising property tax bills, which would make raising tax rates unpopular.

At the same time, he said raising fares could price-out some users, lowering overall ridership and creating a "vicious cycle" where reduced revenue begets reduced service.

"And simply it's really important, I think, in themiddle of the affordability crisis,that there is an affordable way to get around your cityand that is through municipal transit," he said.

D'Angelo said New Brunswick has other provinces it could look to for ideas on how to help, including Ontario, which collects two centsfor every litre of gasoline soldfor public transit funding.

That tax resultedin $380 million being transferred to 102 municipalities for the 2023-24 fiscal year.

"So it's a phenomena where a little would go a long way," D'Angelo said.

"This is a really interesting opportunity for the next government of New Brunswick, whatever party forms that government, that there's a cost-effective wayto implement real change in the cities across New Brunswick that are struggling to keep up with the demand."