Friday, December 13, 2013

Hamilton and the New Transit Taxes, Will We Get Our Fair Share?

The Ontario transit panel headed by Anne Golden has recommended a 10 cent hike in provincial gasoline taxes, a half percent increase in the corporate tax rate and $80 from HST to fund transit initiatives.

This article from the Star's Royson James gives some good coverage, but with regards to Hamilton I'm most interested in this part:

"The measures would be implemented province-wide, but money generated in Timmins would stay in Timmins, not be used in the GTA and Hamilton (GTAH).

The panel further recommends that the province enact legislation to set aside the new revenues — just under $2 billion in the GTAH — in a special fund dedicated to transit."

The big related question for Hamilton, is does the money generated from Hamilton stay in Hamilton or does it get siphoned off into other project deemed more important in the GTAH. Metrolinx the transit authority for the GTAH has already spent considerable money in Toronto on giant projects like the expansion of the Spadina subway to York University and beyond, while Hamilton has received rather paltry amounts for tiny projects, like funding for the A-line bus route during peak periods to the airport along Upper James and a small amount for the new bike share project.

Hamilton is in line for a new GO station around James North and Barton, however the promised trains are almost insulting few in number, an extra two train trips to Toronto in the morning and two back in the afternoon. That is an increase over the four current trips from the downtown GO station (which is already quite small compared to Aldershot and the rest of Burlington).

In theory Hamilton has been promised funding for an LRT line in the lower city by a 2007 campaign promise, which would be a huge expenditure, but it seems Hamilton is no closer to a line than 2007. Meanwhile since 2007 the province has spent considerable sums in Toronto and some of the other areas of the GTA and will continue to do so especially if this new funding comes to pass.

Hamilton has pretty evidently been short changed since 2007 on provincial (and federal transit funding that could have come with it). These new taxes would raise some serious money going forward. If gas tax money raised in Timmins stays in Timmins, would the same hold for Hamilton under Metrolinx (or perhaps the overall gas taxes in Ontario divided by Timmins population would stay in Timmins)?

How much would 10 cents in gasoline taxes (plus the 13% HST charged on those new taxes) raise for Hamilton transit if the proportional amount have to be spent in Hamilton? This Globe and Mail article says that 38,208,346,000 litres of gasoline were sold in Canada in 2012. With a rough guess from Hamilton's and Canada's populations, that's around 545,000,000 litres per year for Hamilton. The eventual 10 cents per litre tax would raise around $54.5 million per year for Hamilton (not including the extra HST revenue which would end up being $61.6 million per year total). That's a lot of additional money just by itself if it were to stay in Hamilton. That amount per year over 20 years could easily fund a $1 billion LRT line to say nothing of the other revenues from the other proposed taxes.

The concern with such new taxes is whether Hamilton would get its proportionate share from Metrolinx. Going by what has happened since 2007, that seems doubtful, although getting funding for an LRT line would seem more likely. Hamilton would need to speak up to get that money (and Bob Bratina certainly isn't going to do it). Frankly Hamilton being part of Metrolinx hasn't been very good for Hamilton.

There's always going to be a transit priority in Toronto that will take precedence. Based on past experience, these new taxes will probably be bad for Hamilton overall as Hamilton will pay the taxes but will end up funding more transit in Toronto than Hamilton receives.

One disappointing thing about all of this, is that Hamilton media hasn't been more vocal about totaling up Hamilton's funds from Metrolinx and comparing it to what has been spent in Toronto. It is something that needs to be done.      

 

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