What if SkyTrain was a fare-free service open to ride all the way from King George to Waterfront, through Canada Way to YVR and around Millenium Line?
A crazy thought given today’s standards, but the thought nonetheless crossed the mind travelling from downtown Vancouver to Surrey which cost, roughly, $10 per day, $50 a week, $200 per month, and so on.
Thus, the thought: What it would take to provide a zero-fare service to Lower Mainlanders, restricted to SkyTrain alone?
TransLink funding sources
TransLink’s revenue sources isn’t proprietary knowledge, several articles, including one issued by the transportation giant itself, have covered this complex, and strange, model. Funding is received via two key revenue-streams: Tax and user revenues.
Tax revenue:
- Property Tax: TransLink assesses property tax on the net taxable value of land and improvements within the 21 municipalities that make up its service area. 3% increase each year has been made to keep up with inflation
- Fuel Tax: Approximately 17 cents per litre of gas goes to TransLink
- Parking Tax: When someone forks over money to park, a small tax goes to Translink.
- Power Levy: Levy added to hydro bill of Metro Vancouverites. Just under $2 p/month, at its maximum.
User Fees:
- Transit fares. (The crux of this article.) Self-explanatory. Users that use the train, pay a fare.
- Bridge Tolls. Also quite self-explanatory.
* All TransLink data taken from: https://buzzer.translink.ca/2013/03/translink-101-where-does-translink-get-its-funding-and-how-do-we-spend-it/
The transpo-economics
2012’s total revenue was $1.42 billion. Sixty per cent of this total went to transit operating costs, approximately $852 million.
Transit fares made up 32 per cent of TransLink’s 2012 total funding. This equates to about $454,400,000. Not nearly enough to cover operating costs but a substantial amount nonetheless. Ostensibly, to eradicate transit fares, the $454 million in fees must be recouped one way or another. What this would mean is an increase in taxes.
Sounds crazy to increases taxes provided Canada and B.C.’s slow economic growth, but it’s about regulation and accountability being placed in the hands of taxpayers.
We are all taxed in some way or another to provide for our region’s transit infrastructure. Fuel tax, property tax, parking tax, a hydro levy, these are all currently imposed on British Columbians for the purpose of helping fund TransLink (which, by the way, is responsible for more than just SkyTrain).
If just half the number of Metro Vancouverites were taxed, about 1.2 million citizens, a small increase across the TransLink tax board, enough to equal to about $37 p/month, per taxpayer, it would make up for the loss in accumulated revenue from fares. In turn, it would be interesting to see if taxpayers wouldn’t mind paying a little more in order to use SkyTrain and related services without the need to remit payment.
Nevertheless, at the very least, we need to establish a designated regional Transit Tax, issued by municipality. A specific tax equation that outlines how much of a small percentage is taken from here and another there, must be established. Further, it must be the region to decide on the direction and choice to set a reasonably set transit tax rate.
Referendums could be held, or kept to public consultations that TransLink organizes. But Decisions and tax rates should be set by B.C. taxpayers. Whether a regional vote or piecemeal public consultations, regional decisions need to be made through regional input.
Others who do not use the train regularly or, at all, will of course raise ire over such a policy. But because we are already taxed to help fund TransLink and have been for some time, why not establish a designated regional Transit Tax and offer public consultation to help regulate and to provide spending accountability?
Furthermore, increase it incrementally, with a cap limit placed, and effectively removing the arbitrary fare system currently in place it provides a direct correlation between taxation and benefit for the many that use the system, which was, in the last quarter of 2012, about 396,500 a day, on weekdays, according to the American Public Transportation Association (p.31).
Setting tax limitations such as the power levy cap at $1.90 will also establish a level of funding that is supported by the region, where service and upgrades will depend on taxpayers, and subject to the wants and needs of the Lower Mainland.
If reading this post makes you shake your head and think a system such as the one proposed is not possible, then we need to ask ‘why?’ And perhaps we do need a body like TransLink more than we think, to regulate projects, fares and development for us?
Give to get seems the only fair solution, arbitrary fares we have no control over applied to a system we are already taxed for, doesn’t just seem, it is, extravagant. An established tax rate the region understands and has input over is the best direction for working towards beating the region’s transit funding conundrum.
Disadvantages…there’s always cons
There are other cities and regions overseas that offer free transit services to its citizens. In Germany, France and Czech Republic, free public transportation is provided in various places to differing degrees of success. To extend similar gratuitous service here is an idealistic suggestion.
But the glaring disadvantage or conscious issue of providing free transit, as also experienced in other places that provide such complimentary service, is the increased hooliganism on board. Additionally, it would be difficult to prevent the train from turning into a makeshift destination for the region’s homeless. Granted there is little stopping them now, free fares would give them the right to loiter about.
Furthermore, a decline in overall service, increased vehicle maintenance and security costs are additional direct negative impacts.
But TransLink currently has a funding issue. The taxpayers are the only source of income for our province’s services and institutions. Why not establish a tax that the region’s residents agree to, abolish fares as a benefit, and eradicate the need to scrape together pieces from other tax sources, which makes the process complicated and unnecessary. A tax is a tax is a levy…
Or perhaps we should continue with the status quo. Pay for the system just to additionally pay to use the system. Is TransLink a business or public service? Currently it seems like both and that seems odd.
Surrey BC'er 