Municipal transit systems get more funding through change to Ontario gasoline tax program

The Ontario government plans to increase funding for many community transit systems by doubling the municipal share of the gas tax program from two cents per litre to four cents by 2021, Bill Mauro, the MPP for Thunder Bay-Atikokan announced Wednesday.

For example, this means by 2021 the city of Thunder Bay will have $3.6-million to spend on a variety of mass transit initiatives.

"This funding will also assist in continuing to build up our local economy, as well as contribute to the overall well-being of people in our community," said Mauro in a written release.

He also believes it will help take some of the pressures off municipalities at budget time.

"From my days on council I can remember that a bus at that time [about 15 years ago] was somewhere in the neighbourhood of $400,000 so some of that budget pressure is relieved and it creates some room for them to do other things or to do the same things at the same tax rate," he said.

New buses, extended service, improve shelters

This provincial funding dovetails with federal infrastructure money and will allow the transit department to do some strategic planning, said Brad Loroff, the manager of transit for the city of Thunder Bay.

• Federal transit funding means capital projects to be in 2017 municipal budget
• Federal government announces $6M for transit upgrades in Thunder Bay

His department will be able to buy new buses, and improve or extend service on many routes, as well as investigating "new electronic fare management systems, smart card systems, new fare boxes as well as infrastructure improvements to bus stops and transfer points where buses connect so it would allow us an opportunity to take a broader look at improving transit service overall for people," he said.

One bus takes up to 40 vehicles off the road, and keeps 25 tonnes of greenhouse gas emissions out of the atmosphere each year, the news release stated.

There will be no increase in the tax that people in Ontario pay on gasoline as a result of the enhancement to the program, said Mauro, although the price at the pumps is expected to rise due to recent carbon tax legislation.