The TTC Board considered its Operating and Capital budgets on January 7 before passing them on to the City as part of the overall budget process. For details on these reports see:

• TTC 2026 Operating Budget
• TTC 2026 Capital Budget and 2026-2040 Plan

Over roughly three hours there was a staff presentation, public deputations and a debate that often avoided major discussion of alternatives and future policy. A key item for future budgets is the shortfall in funding from provincial and federal governments, but also the city’s appetite for continued increases in the municipal subsidy.

Some commentary and claims about the TTC budget have distorted or missed some key items.

• Yes, the TTC is asking for more subsidy in 2026, but at a level set by the Mayor’s Office before the budget was completed. We have known for some time that this number was $91-million, and the budget options were chosen to hit this target.
• There is a confusion between actual cuts within the budget and “efficiencies”. The latter implies that there is always waste to be found that can keep subsidy calls down, but in fact barely $10-million falls under that heading for 2026, and there is even less available going forward into 2027.
• The big reductions lie in accounting changes shifting depreciation costs to the Capital budget, and booking WSIB costs only for the current year rather than accruing future year costs arising from current incidents. There is also an unspecified corporate wide reduction with no indication of what the impact will be. These cannot be repeated in 2027.
• The budget-to-budget comparison from 2025 to 2026 looks not too bad because 2025 budget was at a higher level than actual results. The gains needed in 2026 are considerably higher measured against the 2025 actuals which are below the budgeted levels.
• Discussion of how to eliminate the operating shortfall through the farebox led to the frightening figure of a $1.90 fare increase. This of course would have a huge effect on affordability and ridership especially if programs to improve service were choked off at the same time. That big number is a direct result of years of fare freezes going back into the Tory era and the fact that ridership is still well below 2019 levels. The gap gets wider and wider, and would be paid for by bigger and bigger fare hikes if that approach were taken.
• Appeals for better operating funding will inevitably run into claims that other cities have raised fares while Toronto chose to keep its fares low. That is a policy decision by the City. Should additional subsidy be paid to support that from other governments? One problem with numbers cited by management is a mix-and-match of cash fares and regular adult fares in some cities that they cite by comparison to Toronto. For example, the MiWay (Mississauga) cash fare is $4.50, but the adult Presto fare is $3.50, only slightly higher than Toronto’s.
• Fare enforcement has improved revenue by more than expected, but is hampered by available staffing and operating practices such as all-door loading that would cost money and capacity if they were changed. The Board seems incapable of looking at both sides of the ledger and fixates on revenue, enforcement and limiting opportunities for evasion without considering the effect on service delivery.
• Claims about service improvements in 2026 muddle what is actually in the budget. The subway service improvements were actually implemented in 2025. All the budget does is make provision for full-year funding of this change (and similarly for other 2025 changes). Subway service is constrained by the size of the Line 1 and 2 fleets, plus the limitations of the signal system on Line 2. Current replacement plans do not add to the fleets, and there is considerable expense to keep Line 2 trains running until the new trains arrive. There is some provision for extra bus and streetcar service, but some of that will disappear to congestion effects, and service improvements will not begin until Fall 2026.
• Commissioner Saxe proposed that the TTC study the elimination of cash fares. Nothing will come back on this for two budget cycles (i.e. at least 2028) because the report is not due until early 2027 and will likely have no effect on that year’s budget.
• Chair Myers proposed that the 2027 budget and subsidy consider linking goals and metrics for TTC performance. This is a dangerous idea on a few counts. Most obviously, what targets would the TTC aim at? It is no secret that existing metrics leave a lot to be desired and, in some cases, have been cooked to put management in the best light. The last thing we need is a potential cut in funding to arise from failure to meet targets, or to be based on metrics that do not reflect actual rider experience. In turn, that would encourage creative reporting of results when what is needed is transparency and honesty.