Quebec’s planned solution to close the public transport deficit would cause cities’ bills to rise by more than a third in 2024, Montreal, Laval and Longueuil unanimously denounce. The metropolis of Quebec alone is expected to find no fewer than 234 million next year, La Presse learned.
Published at 3:16 am. Updated at 5:00 am.
What there is to know
The government does not currently intend to commit to repaying more than 20% of the transport companies’ deficit.
The cities that would foot much of the remaining bill are worried.
For Montreal alone, this would mean an expense of 234 million, more than snow removal.
“The government proposal would represent a 35 per cent increase in municipalities’ financial contribution 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 mayors of Montreal , Laval and Longueuil in a letter sent to Transport Minister Geneviève Guilbault on Friday. The mayors of Mercier and Deux-Montagnes also co-signed it.
The document estimates that cities in the greater Montreal area 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 that’s what Greater Montreal’s elected officials came to when they read the government’s proposal. This week, Ms Guilbault offered 502.8 million in financing to transport companies, accounting for just under 20% of the industry’s 2.5 billion deficit. The rest would be covered by “optimization” efforts of 365 million, but primarily by the municipalities. An industry counteroffer is expected next week.
For Montreal, one of the largest ARTM payers, this increase would be staggering. Its current contribution, estimated at 667 million in 2023, would rise to about 901 million: a huge increase from 234 million.
This sum would mean a significant unforeseen expense for the metropolis. For comparison, clearing snow from Montreal’s streets costs about $190 million per year. In fact, increasing its contribution to public transport by 234 million could even lead to an increase of around 5% in Montrealers’ current tax burden.
Quebec “appropriates” a tax
In their letter, Valérie Plante, Catherine Fournier and Stéphane Boyer find it difficult to explain that although the cities’ contribution would increase from 31.7% to 41.2%, “the share of the state contribution to the financing of public transport in the Greater Montreal area However, “would increase from 33.9% in 2023 to 21.3% in 2024.”
PHOTO MARTIN TREMBLAY, LA PRESSE ARCHIVE
Montreal Mayor Valérie Plante
Elected officials are also concerned that Geneviève Guilbault’s proposal “appropriates the vehicle registration tax adopted by the CMM.” [Communauté métropolitaine de Montréal] for operating deficit purposes, while elected officials want to use it for service development.
To arrive at a deficit of 2.5 billion over five years, a figure well below the 3.7 billion reported by the Quebec Urban Transport Association (ATUQ), Ms. Guilbault’s office actually counts revenue from the Registration tax and REM (Metropolitan Express Network). .
“Your proposal to attribute the tax on vehicle registration decided by the CMM Council to the deficits of public transport services has the effect of depriving the elected representatives of the CMM of the financial influence that they would like to retain in order to promote the development of public transport in their territory ensure. The government proposal contradicts this will of the elected CMM officials,” denounced the three elected municipal representatives.
You speak of a “significant setback for sustainable mobility” and also regret “having to discuss this topic”. […] so close to the adoption date of our local budgets,” which is scheduled for November. “However, in May we presented a proposal for discussion to avoid this situation,” emphasize Ms. Plante, Mr. Boyer and Ms. Fournier.
In Geneviève Guilbault’s office we answer that public transport remains under municipal jurisdiction. “The goal remains the same: to propose a lasting vision for the financing of public transport together with transport companies and municipalities. We must all work for the well-being of Quebecers. Minister Guilbault will not negotiate publicly. We are still waiting for the stakeholders’ proposal,” explains Communications Director Maxime Roy.
“More ambition”
Quebec and Montreal transport companies on Friday called on the Legault government to have “more ambition” when it comes to sustainable mobility. According to them, several cities are heading straight for significant service cuts.
“We call on Prime Minister Legault and Finance Minister Eric Girard to ensure we have more ambitious goals for public transport. “In the current situation, it is essential,” emphasized the President of the Réseau de Transport de la Capitale (RTC), Maude Mercier Larouche, on Friday.
She was notably accompanied by the president of the Société de transport de Montréal (STM), Éric Alan Caldwell, which may have to reduce its service by around 15% if the original proposal of Transport Minister Geneviève Guilbault is implemented. This would mean that the STM would return to the 2006 level.
“Of course we will do our best. Of course, we strive to optimize and reduce our costs. […] But one of the basic principles of the green tax is to reward good behavior. Cities that want to maintain and develop service offerings must be rewarded,” said Caldwell.
7%
The carriers’ exit came as the 2023 Sustainable Mobility Policy Forum (PMD) was taking place in Quebec on Friday. This regulation sets the annual increase target for service levels across the province. This is currently 5%, but several municipalities are calling for an increase to 7%. A priori, the new PMD Action Plan 2023-2028 should be announced in the spring.
Source: Metropolitan Community of Montreal