Transit Told To Slash $250K From Deficit

There could be fare hikes and more route reductions as Saint John Transit tries to cope with the impacts of the COVID-19 pandemic.

The transit commission has lowered its projected 2020 deficit to just over $500,000, but the city wants that number to be even lower.

Members of the city’s finance committee approved a motion Thursday asking the commission to reduce its deficit to $250,000.

“The forecast of another $500,000 [deficit] between now and the end of the year is just too tight,” said city manager John Collin.

The city, which has its own financial woes because of the pandemic, would be on the hook for any deficit that Saint John Transit incurs.

Earlier this year, the transit commission projected a deficit of up to $1.2 million due to fare suspensions and passenger restrictions.

But their financial situation has improved with the resumption of fare collection and passenger capacity being doubled. The commission also laid off several employees and reduced their service hours to help close the shortfall.

Coun. Donna Reardon said she has “grave concerns” about the impacts of higher fares and more route reductions on transit users.

“We can’t keep taking a bite out of transit month after month,” said Reardon, who is a member of the Saint John Transit Commission.

“The impact will be felt for years for the reliability and the stability of the system. If we go with increased fares and reduced services, I don’t see how we can recover.”

Reardon said it is also a social justice issue as those on the lower end of the socioeconomic spectrum would be most affected by service changes.

Marc Dionne, the general manager of Saint John Transit, said they have already eliminated Sunday and holiday service and reduced service by 20 per cent on all routes.

“Going forward beyond this will mean that we’re going to have to start eliminating routes,” said Dionne.

Mayor Don Darling suggested the commission look at increasing fares, which Dionne said could be an option they consider.

But Reardon said even if fares were increased, routes could still be cut, which she said would be a “double whammy”.

“We already know from past experience and historically that when you put the fares up, you do have some ridership that drops off for a certain period of time,” she said.

The transit commission will return to the finance committee next month with a plan to reduce its deficit.

In the meantime, both Collon and Dionne said the city is working with their counterparts in Fredericton and Moncton to advocate the provincial and federal governments for funding relief.