Operational Transit Funding for Small to Medium Sized Municipalities

History shows that advocacy for a national transportation strategy has come to fruition by way of the first Permanent Public Transit Fund, announced in February 2021. The $14.9 billion will be provided at $3 billion per year, for the next eight years to larger municipalities. This new fund will provide cities and communities with predictable transit funding. Subsequent to that, the federal government announced a new Rural Transit Fund in March 2021. The $250 million Rural Transit Fund is dedicated to “support unique transportation solutions”⁵ in rural, remote and small communities, as there is no one size fits all solution. As part of the Investing in Canada plan, this fund will support the planning and deployment of innovative mobility solutions in rural communities.

“The first ever Rural Transit Fund recognizes that Canadians living in rural and remote areas and in small communities have unique transportation challenges that require flexible, tailored solutions. We'll work with communities to find the best transit solutions and provide the support to make them a reality, creating local jobs and growth, helping to tackle climate change, and building more inclusive communities.” ⁶  -   Catherine McKenna, former Minister of Infrastructure and Communities

On January 27, 2022, the Honourable Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities called for applications under three programs offered through the Rural Transit Fund. All three speak to capital funding parameters, however, two offer an operational funding component, the Zero Emission Transit Fund, and the Active Transportation Fund.⁷  While this opportunity is welcomed, it is one, a very small amount, and two, the funding is limited to trails, pathways, and most especially, geared towards established systems and infrastructure.

Further transit strategy advocacy:

• There was a national call from FCM by way of an adopted resolution, Rural Intercity Transit Strategy⁸, speaking to the coordination of a national strategy through all levels of government in 2018. From that, the FCM in their “Building better lives with Budget 2020”⁹  and “Building Back Better Together 2021”¹⁰  budget recommendation submission to the federal government supported a range of rural mobility and transportation solutions. 
• Delegates at the 2021 FCM’s annual conference adopted a resolution on Emergency Federal Support for Inter-Community Passenger Bus Service, which reinforces “the need for distinct and targeted solutions to address the unique capital and operating needs for long-distance routes.” ¹¹
• Canadian Urban Transit Association (CUTA) President and CEO, Marco D' Angelo, in a letter to then Minister of Transport stated: “Transit builds and empowers Canadian communities of all sizes from coast to coast. Rural inter-city bus services connect Canadians across the country to each other and to basic social services, like healthcare and education. Connected communities help to foster social equity and inclusion and give rise to economic opportunities for Canadians. In a country as vast as our own, rural inter-city bus services provide a lifeline that may be difficult to quantify, though invaluable to those who rely on it.” ¹²
• The Government of Alberta completed extensive engagement to create a provincial public transportation strategy in 2014. The draft strategy, “Connecting Albertans with Each Other and the World: A Long-Term Transportation Strategy for Alberta”¹³  outlined seven goals, of which recommended Goal 3, speaks the strongest to inter-community transit.

This resolution builds upon the City of Edmonton’s approved 2020 AUMA resolution on Permanent Transit Funding, and association’s advocacy for stable and predictable funding for all municipalities, by highlighting the importance of small to medium municipalities having a voice in the development of the new rural transit fund and for this fund to provide operational support. The challenges for small to medium sized municipalities are very real. Just in the last few years, many provincial areas have become municipal responsibilities, without accompanying operating dollars and the inability to generate revenue as an offset to the operations of these new responsibilities.

For many of these smaller municipalities, the challenge to be able to provide forms of transit for their residents, especially the vulnerable populations is threefold: the ability to provide potential dollars towards capital projects; grant writing resources and cumbersome application processes; and finally, finding additional dollars to operate.

As seen by the table below, all municipalities over the 12,500 population have the ability for inter-community travel, where a majority of the 7,500-12,500 populations do not. 

Out of 16 municipalities, a majority have some form of transportation, and at least half of all municipalities listed, already subsidize their intra-community transit in some form or another to ensure their residents can tend their daily needs. Of these municipalities, a majority of these offerings are available to seniors and residents with mobility or intellectual disabilities. And of those, the larger municipalities have one or more busses in service, and others with vans. 

Transportation Availabilities Overview¹⁴ 

*Does not include taxi service.

"Lack of transportation in rural areas compounds the effects of aging and poverty by limiting access to medical and essential life needs. The problem is complex because of the vast area to be served and the reality that rarely are two or more people travelling to the same location at the same time."¹⁵   

Mayors indicate that: "In some of these communities, if you don't have good transit, it's a real disadvantage." They say it's a disadvantage to attract investment because people want to go where you have good public transit, [where] you're able to get around."¹⁶  

In order to become part of the transit solution, while small to medium sized municipalities have the opportunity to apply for capital funding, the operational funding mechanism is the greatest barrier to overcome. Including municipalities in the development of this fund is imperative and all municipalities should have a voice in the creation of programs that can complement local solutions.

Notes:

1.  https://www.statcan.gc.ca/eng/subjects/standard/pcrac/2016/definitions
2.  Rural Opportunity, National Prosperity, an Economic Development Strategy for Rural Canada, Infrastructure Canada, June 2019, Page 5
3.  https://www.alberta.ca/provincial-transit-engagement.aspx
4.  https://www.canada.ca/en/office-infrastructure/news/2021/03/government-…
5.  https://www.canada.ca/en/office-infrastructure/news/2021/03/government-….
6.  Infrastructure Minister Catherine McKenna  https://www.cbc.ca/news/politics/rural-transit-funding-mckenna-1.596787…;
7.  https://www.canada.ca/en/office-infrastructure/news/2022/01/government-…
8.  https://data.fcm.ca/home/fcm-resolutions.htm?lang=en-CA&resolution=ea29…
9.  https://fcm.ca/en/resources/building-better-lives-budget-2020
10.  https://data.fcm.ca/documents/COVID-19/fcm-building-back-better-togethe…
11.  https://data.fcm.ca/home/fcm-resolutions.htm?lang=en-CA&resolution=b785…
12.  https://cutaactu.ca/wp-content/uploads/2021/01/letter_-_transport_minis…
13.  https://open.alberta.ca/dataset/0a906f69-00e1-418a-aeef-78e948239103/re…
14.  Community Transportation Briefing Note, prepared by Maria Lemon, Summer Student Intern, Town of Olds, May 10, 2021
15.  Kelly Taylor, Executive Manager, Rural Rides https://www.newswire.ca/news-releases/government-of-canada-announces-fi…
16.  Infrastructure Minister Catherine McKenna  https://www.cbc.ca/news/politics/rural-transit-funding-mckenna-1.5967875