Management & Operations

Canadian federal budget lacks dedicated transit funds

Posted on March 21, 2007

The Canadian federal government released its budget this week with less funding lined up for dedicated and predictable investment in public transport, discouraging the Canadian Urban Transit Association (CUTA). CUTA is pushing for the creation of a national transit strategy that would provide long-term and sustainable funding to address the $4.2 billion needed annually for maintenance and expansion of current systems. Although the budget provided a commitment to the Building Canada Fund, CUTA says this will lead to more ad-hoc projects as opposed to an integrated, comprehensive transit plan. The association also welcomed the expansion of the federal tax credit for transit pass users but expressed disappointment that a tax exemption for employer-provided transit benefits was overlooked.

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