As planned, Quebec is officially submitting a new upward offer to cities and transport companies. In the Greater Montreal area, the government would increase its contribution from 150 to 238 million by 2024. A number that, however, remains below 300 million and is considered by cities as a threshold to be respected in order not to affect service.
Posted at 5:00 p.m.
The story so far
October 18th
Quebec presents an initial offer that would cover just 20% of carriers’ deficits by 2028.
October 24th
In return, the cities are demanding that the government cover 75% of the deficit in the Greater Montreal area. They are demanding 400 million for next year. La Presse immediately reports that the government is preparing to present a new offer of more than 200 million for next year.
November 2
Quebec officially makes a second offer, increasing its contribution from 150 to 238 million for 2024 in the metropolis, but calculating the size of the expected deficit downwards.
A scenario in which the government would extend at least more than 200 million euros starting next year had been previously mentioned by La Presse but has not yet been officially confirmed by Quebec.
“This offer is all the more generous given that our government has already been very present during and after the pandemic,” writes Transport Minister Geneviève Guilbault in a letter sent this Thursday to the Metropolitan Community of Montreal (CMM) and Quebec Urban Transport Association (ATUQ ).
Ms. Guilbault estimates it will absorb 70% of the Montreal area’s transportation deficit next year. It now puts the deficit at 337.9 million, significantly less than the 532 million stated by the cities in the metropolis.
PHOTO EDOUARD PLANTE-FRÉCHETTE, LA PRESSE ARCHIVE
Geneviève Guilbault, Minister of Transport
So far, Quebec has spoken of a deficit of around 410 million for the Greater Montreal area in 2024, taking into account the revenue from the registration tax as well as future “optimization measures” that would allow a saving of almost 14 million.
However, a recent “update” to the Regional Metropolitan Transport Authority’s (ARTM) budget framework on October 31 would have allowed for a review of planned revenue and expenditure, the minister says. According to the government, this could reduce the expected deficit to 337.9 million.
Following the same logic, Ms. Guilbault reiterates that the deficit for all of Quebec and the ten major transport companies for 2024 is now 376.4 million, while until recently it was 448 million. Total government support is $265 million, including $27 million for regions outside Montreal. This would also be equivalent to covering 70% of the deficit.
More than “equal parts”
Ultimately, this offer “goes beyond the principle of equal distribution of the deficit,” welcomes the minister in her letter. Ms. Guilbault speaks in particular of a proposal that is “significant in the current context of public finances” while taking into account “Quebecians’ ability to pay.”
However, there are still some pitfalls before an agreement can be reached. First, the fact that the two parties do not even agree on how to calculate the deficit could weigh heavily.
There remains disagreement over the application of the new registration tax in the Greater Montreal area: municipalities want to use it to expand the network, while the government expects it to be used to reduce the deficit.
In October, Minister Geneviève Guilbault proposed in her first offer to cover only 20% of the deficits of transport companies in the Greater Montreal area, with aid worth 502.8 million over five years, including 149.5 million in the first year .
The cities of the metropolitan area then proposed that the Legault government in the short term assume 75% of the deficit for 2024, estimated at 532 million on the municipal side. In other words, their formal request to the government for next year was only 400 million.
What is the future of the service?
Unless there is a surprise, all indications are that communities will remain hungry. In recent days, the cities of the Greater Montreal area had argued that aid of less than 300 million for 2024 would lead to numerous service cuts in the subway, which would have to close after 11 p.m., as well as the withdrawal of buses from the streets and driver layoffs .
It is currently unclear whether the cities will make a new counteroffer or whether they will implement these benefit cuts. There was no reaction from them on Thursday.
For a while it seemed certain that cities would not receive 300 million for 2024. According to our information, the government had sent various signals to local elected officials on this issue in the last few days.
Nevertheless, time is running out to reach an agreement. On the one hand, the municipalities have to finalize their budgets in mid-November, and on the other hand, Finance Minister Eric Girard has to present his economic update on November 7th.
However, one thing seems certain: the rest of the five-year plan to finance public transport will most likely only come in the spring, when the government’s annual budget is presented in March 2024. Only then will we have an idea of the level of government support in the longer term for all of Quebec.
In collaboration with Tommy Chouinard, La Presse