[Unfortunately no mention of Victoria's recent decision to fund free transit for youth through parking revenue]
Free transit rides for kids would cost $1M a year: city
COUN. Matt Allard’s campaign promise to offer free bus rides to kids has a price tag even he admits could squelch the initiative.
A report from Winnipeg Transit says it could cost taxpayers more than $1 million annually to provide free transportation for children age six to 11.
The report, to be considered at the June 25 public works committee meeting, breaks down the cost of Allard’s idea. It includes an estimated $834,000 in lost fare and $200,000 in additional operating expenses, presumably related to additional salaries for two new buses needed for the project. (The cost of two buses is a further $1.34 million.) Allard, who proposed the idea during the 2018 civic election, said he believes the amounts are exaggerated, but admits it may be a tough sell.
“I have to say I’m a bit skeptical on the numbers presented by Transit,” the public works committee chairman said, adding he thought the report exaggerates the number of children who use transit and what it would mean in terms of lost revenue.
“I ride transit quite a bit, and I just don’t see that age group riding the buses now,” Allard said. “I ran for re-election with the promise that this is something I would bring to council — and I think it’s a good idea. My challenge now is having that conversation with members of the committee and other council members to see if eventually this is something we would fund.”
Allard had hoped the initiative would get kids to use the bus, and they would become paying customers after turning 12. He said offering free fare to children age six to 11 might also encourage parents to use Transit more.
Currently, children five and under ride transit for free; children between the ages of six and 16 (and other high school-aged youth) receive a 30 per cent discount on the full fare.
Transit says it collected $8.34 million in children and youth fare revenue in 2018, but it has no way of knowing how many of those children are between the ages of six and 11. It estimates the number at 10 per cent, and placed the potential lost revenue at $834,000.
The report noted Edmonton has been offering free transit to children since 2018, where it’s estimated the annual revenue loss will be about $2 million with an additional $880,000 in operating costs, along with the need to purchase 17 additional buses.
Toronto had a marked jump in the number of children riders (to 28 million from 22 million), when it began offering free transportation.
It estimates it has lost $8 million in revenue.
Winnipeg Transit says it didn’t expect to see the same experience as Toronto and Edmonton, and projected lower operating costs and revenue loss.
As an alternative, Transit suggests free fares for children could be incorporated into the proposed low-income discount initiative, which has yet to be fully costed.
The report doesn’t make a recommendation to the committee about adopting the plan. It says if councillors want to proceed, children should be required to get a Peggo card so they have to provide their age. The free-fare period would expire on their 12th birthday.
“One of the key challenges with offering free transit for children under the age of 12 is determining who is eligible at the time of use,” the report states. “Bus operators would have a difficult time determining the age of a child if no additional identification was required.
“Some controls would need to be in place to ensure the program was not abused.”