The proposed budget is nearly six per cent higher than the 2024 budget. Photo Credit: NRT/Facebook.
Niagara Regional Transit’s budget is set to climb, which could drive taxes higher, if Niagara Regional Council doesn’t intervene and demand savings on behalf of taxpayers.
The Niagara Region Transit Commission is chaired by Regional Councillor and St. Catharines Mayor Mat Siscoe. The budget was put forward by Carla Stout, the General Manager of the Niagara Transit Commission.
The Niagara Transit Commission approved last week a gross operating budget for 2025 of nearly $88 million, an increase of almost six per cent over 2024 levels, with a large majority of members voting in favour.
That rather significant budget increase won’t even cover extended Sunday and holiday service, as had been petitioned (for certain areas) by St. Catharines Councillor Caleb Ratzlaff.
The service extension would have meant an additional 1.7 per cent budget increase, costly nearly $1 million next year alone.
It was opposed by Regional Councillor Wayne Redekop of Fort Erie (also Mayor of Fort Erie) and a majority of commissioners, largely on the basis of regional equity and budget concerns.
Many members of the commission felt that such an increase, in addition to the 5.9 per cent budget increase the commissioners are already asking for, would have been unpalatable for regional councillors and taxpayers.
Last year, regional councillors rejected Niagara Transit Commission’s initial budget. Councillors rejected the commission’s proposed 7.8 per cent budget increase last fall, forcing commissioners to revise the increase downwards to 5.57 per cent.
Commissioners are hoping that the same thing doesn’t happen to them this fall, but Niagara Regional Council may once again find such a large budget increase to be unacceptable for taxpayers.
Commissioners are blaming higher gas prices and wage increases for unionized and non-unionized employees for the significant budget increase.
Millions in this year’s budget will go toward servicing debt, paying administrators and maintaining equipment and vehicles.
More than half of the NTC’s proposed 2025 budget will go toward labour costs.
Under the present plan, no additional employees are expected to be hired in 2025, unless vacant positions are being filled.
Revenue is also expected to climb, in part due to fares being harmonized across the region next July, with integration of the transit system across Niagara Region progressing further.
One rapidly increasing cost has to do with the Specialized Transit Service, which is a shared-rider service for those in the Niagara Region with disabilities.
There are questions as to whether the system is being abused, with Niagara Transit promising to re-evaluate the service and its application process.
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.
