More on GO-DRT Fare Agreement

Rita Szekely of Metroland has written an article that provides more details on DRT’s proposal to cut the GO-DRT fare agreement.

The proposal is a result of an $800,000 budget DRT budget deficit.  One of the key issues is that DRT is being asked to budget $1.20/L for diesel fuel, as a precaution against increased fuel prices.  We’re all aware of the volatility that fuel prices have had over the past few years.  DRT states that if they budget $1.08 for fuel prices, they would be able to meet the guideline without cuts, but that would of course leave them vulnerable should fuel prices increase.

Finance Commissioner  Jim Clapp stated “Let’s get [fuel prices] under control”.  I wholly agree with this sentiment, but I do wonder why DRT has not considered entering into fixed-price fuel contracts.  True, these contracts can cost you more if free-market prices end up staying lower than the contract price, but they allow certainty on fuel pricing and that is critical for transit planning.  We haven’t seen the TTC adversely affected by fuel price volatility, and that is because the TTC is protected by its fuel contract.  DRT should consider the same.

In my previous post, I mentioned that the Finance Department staff recommended that DRT be asked to prepare a business case.  Instead, the Finance Committee (e.g. the politicians, rather than the staff) chose to proceed with budget talks at the February 4 Transit Executive Committee, which will be a joint meeting with Finance.  A more detailed discussion will occur at that time, but Rita states that the finance committee did not seem supportive of axing the agreement.

I’m hopeful that more detailed discussion at the February 4 meeting will provide a path through this that results in DRT being able to keep the GO agreement in effect and provide the planned 2009 service increases. 

Regular readers will know that I have frequently been disappointed with DRT’s service levels and with its inability to provide planned service increases in the past.  Despite the fact that DRT is getting a 12% increase in its budget for 2009, our politicians really have to ask themselves whether transit is a priority for them, and if it is, provide the dollars necessary.  If more money is needed than it is feasible to fund from property taxes, Regional Council needs to start making the case – loudly – that provincial operational funding is needed, as once existed prior to its elimination during the years of the Mike Harris government.  Instead, Council is silent and Durham residents have to accept transit service that fits into a limited budget rather than the service that we know is needed.