The Niagara Transit Commission met on Tuesday, March 18 to greenlight a staff proposal to expand the Niagara Transit Benefit pass to more low-income riders.
The proposal being considered by the Commission is to expand the use of the Transit Benefit Pass to residents currently on Ontario Works and other low-income individuals and families.
Last year, Council asked transit staff to come up with a plan to offer a lower transit fare to those in the Region considered to be living in poverty. This goal, according to the Region, would help break down financial barriers and allow for more universal transit access.
Offering a lower fare to those with lower incomes is expected to lead to a $275,000 decrease in fares collected each year. There is also a one-time cost associated with the proposal of $25,000 to expand an online platform to ensure the Commission can assess who is eligible for a decreased fare.
The proposed monthly Transit Benefit Pass would be offered at a rate of $50 instead of $85.50 for local travel and $100 instead of $160 for regional travel. The pass applied to all modes of transit delivered by the Niagara Transit Commission.
Niagara Regional Transit General Manager Carla Stout is optimistic that increased ridership can help make up the decrease in revenue from offering those with lower incomes a decreased monthly fare.
The plan is to implement the expanded Transit Benefit Pass on July 1, 2025, the same day regular cash fares will increase to from $3 to $3.50.
Fort Erie Mayor Wayne Redekop also asked Stout what the Commission thinks will be the implications for ridership under the new proposed plan, and Stout told the Commission they expect ridership to increase under this proposal, which may require additional investment in the system in future years.
Councillor Joyce Morocco asked staff how the Commission plans to monitor exactly who falls into the category of qualifying for the reduced rate and what the staffing cost will be to ensure that those seeking the reduced rate are actually within the appropriate income bracket.
Staff noted that income testing is already done in the delivery of social assistance, and so those receiving social assistance will automatically qualify for the reduced rate.
The remaining individuals who might qualify will just have to visit city staff, as most already qualify for other low-income benefits, meaning staff won’t have to do a substantial amount of additional administrative work.
Assessment won’t happen on a monthly basis either, likely on an annual basis, to reduce the burden on city staff.
One staff member is likely to be added to the transit team to fill this income-testing role, and staff say they already have the budget to hire that individual. The cost of that new staff position is estimated to be about $85,000 per year.
The Commission voted to approve the proposal and send it to Regional Council.
Jay Goldberg is the Ontario Director at the Canadian Taxpayers Federation. He previously served as a policy fellow at the Munk School of Public Policy and Global Affairs. Jay holds a Ph.D. in Political Science from the University of Toronto.
