Advancing the AgendaRichard Joy

VP Policy & Government RelationsToronto Board of Trade

Moving Forward ForumMay 11th, 2012

Objectives

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I. Why is gridlock a problem for public and business?

II. How BIG is the problem in Region?

III.What are the constraints of status quo public finances?

IV.What options do we have to pay for transit expansion?

V. How can we advance solutions?

VI.What does the journey forward look like?

VII. Evidence that public is leading politicians

Gridlock has become the # 1 issue for both public & business

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$6 BILLION/yrLost in productivity &

longest commute times

Our challenge is to finance the world’s largestregional transit expansion initiative

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$50 BILLION+

Scale of The Big Move rivals that of other major global infrastructure projects

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BIG DIG - BOSTONCHANNEL TUNNEL - BRITAIN/FRANCE

THREE GORGES DAM - CHINA

$16-billion

$38-billion

$28-billion

Regional municipalities lack the fiscal capacity to build new transit infrastructure

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Province also cannot afford to advance transit expansion at this scale

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Context: Ontario’s Limited Fiscal Capacity 2001 - 2031

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“Engage citizens in an

open, public dialogue on

how best to create new

revenue sources for future

transportation capital

needs.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

Toronto Board of Trade has led the public conversation about new revenue tools

Large ($1B/year +)

Medium ($500M - $1B/year)

Small (under $500M/year)

Parking surcharge

Regional sales tax

Gas tax

Vehicle kilometers traveled

Road pricing – tolls

Road pricing – congestion pricing

National transit strategy

Predictable, long-term senior government funding

Infrastructure bond

Employer payroll tax

Tax increment financing

Land value enhancement

High Occupancy Toll

Vehicle registration fee

Utility levy

Full-cost recovery transit fares

9The Move AheadReleased May 2010

Regional Transportation Coalition

Strategy: Public Engagement Campaign (Social Change)

Mandate: Create the “winning conditions” to grow public will and ultimately, political commitment, to consider a variety of dedicated revenue tools to fund, implement and sustain a regional transportation plan.

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The long journey towards progress is reaching a crossroad201520142013

Plan A: METROLINX Financing Report Timing

Plan B: METROLINX Financing Report Timing

PROVINCIAL ELECTION

2011PROVINCIAL

ELECTION201-?

City of Toronto Financing Report

2008 2009 2010 2011 20122006

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Public is showing that it is leadingthe politicians on the gridlock issue

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By Region

April 2012

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APPENDICES

CONFIDENTIALRevenue Tools

The Greater Toronto Area has among the worst traffic congestion in North America, with one of the longest commute times. The next few questions are about ways to reduce congestion in the GTA, including:• finding ways to fund the building of new,

more efficient rapid transit options, and • improving road and highway travel.

CONFIDENTIALUser vs. Society Pays

• 63% of drivers surveyed supported user-based fees (transit fares, tolls, parking) to pay for transportation improvements as opposed to society-wide taxes (sales tax).

CONFIDENTIALDrivers show moderate support for revenue tools to pay for transit expansion….

CONFIDENTIAL…with little variation in support between tools…

How reasonable are revenue tools to raise funds for transit expansion/ transportation improvements

• 58% thought tax on commercial parking lots was somewhat or very reasonable

• 57% percent thought a toll was somewhat or very reasonable

• 54% percent thought a 1% sales tax was somewhat or very reasonable

CONFIDENTIALRevenue Tools (con’t)

• 46% percent percent of drivers thought a regional gas tax increase of 2 cents to fund transit build in the region was somewhat or very reasonable

• 54% percent of drivers who commute by major highway were likely to pay to use an optional express lane that would allow them to by-pass highway congestion (HOT lane)

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EXTRA SLIDES TO CHOOSE FROM

Our challenge is to finance the world’s largestregional transit expansion initiative

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$50 BILLION+

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“We need honest

discussions on other

revenue solutions.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

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“Much of the region’s publicinfrastructure is nearing full

capacity and gridlock is already a problem.

Public transit, surely part of any solution, will be costly.

There has been little discussion of either the action needed to meet this challenge or the consequences of failing

to act.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

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“Public transit, surelypart of any solution,

will be costly.

There has been little discussion of either the action needed to meet this challenge or the

consequences of failing to act.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

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“Public transit, surely

part of any solution,

will be costly.

We need honest

discussions on other

revenue solutions.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

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“Overcoming this massive

funding gap is the elephant

in the transit room.

Engage citizens in an open,

public dialogue on how best

to create new revenue

sources for future

transportation capital

needs.”-Don Drummond

Commission on the Reform of Ontario's Public Services (2012)

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“Engage citizens in an

open, public dialogue on

how best to create new

revenue sources for future

transportation capital

needs.”

-Don Drummond Commission on the Reform of

Ontario's Public Services (2012)

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“Overcoming this massive funding gap is the elephant

in the transit room. With few exceptions, public

discourse on the actions needed to meet this challenge — or the

consequences of not acting — has simply not

materialized with any degree of province wide

prominence.”-Don Drummond

Commission on the Reform of Ontario's Public Services (2012)

Regional Transportation Coalition

Current MembershipRCCAO The Pembina Institute Ontario Trucking Association Ontario Motor Coach Association Mowat Centre for Policy Innovation Toronto Real Estate Board York University Pollution Probe Building, Industry and Land Development Devon Group Ontario Home Builders’ Association Woodbine Entertainment United WayCAA South Central Ontario

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Regional Transportation Coalition Strategic IntentStrategy: Public Engagement Campaign (Social Change)

Mandate: Create the “winning conditions” to grow public will and ultimately, political commitment, to consider a variety of dedicated revenue tools to fund, implement and sustain a regional transportation plan.

We will achieve this by:• Increasing citizen understanding of the impact of congestion (define the problem)• Painting a picture of improved mobility, future possibility (articulate the value

proposition)• Sparking public dialogue on how we might collectively close the gap and attain our

desired transportation goals (engagement)• Cultivating public permission and readiness to consider a variety of dedicated

revenue tools in preparation for the release of the Metrolinx financing strategy• Inspiring political commitment to fund and implement a regional transportation

plan that is integrated and sustainable

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