In the latest federal budget released February 26, Federal Minister of Finance Jim Flaherty announced two very positive steps for investment in public transit. In response to ongoing requests for stable, long-term funding, the government has committed to extending the Gas Tax Fund at $2 billion per year beyond 2013-14, and making it apermanent measure. This will allow all municipalities, both large and small, to better plan and finance their long-term infrastructure needs.

The budget announcement came two weeks after ATU Canadian Director Robin West and representatives of the Canadian Urban Transit Association lobbied members of Parliament for just this sort of funding.

The budget also set aside up to $500 million in the current fiscal year to be paid into a third-party trust, allocated on a provincial-territorial per capita basis, for public transit infrastructure. Funding will be paid into the trust, once legislation has been passed, for those municipal beneficiaries that have made public commitments before March 31 to undertake investments in public transit.

The municipal beneficiaries of the trust will have the flexibility todraw down the funding as they require over the next two years. Thetrust will be used for specific projects of capital infrastructure such as rapid transit, rail, transit buses, and high occupancy vehicle and bicycle lanes.

"The allocation of $500 million in 2007-08, dedicated to public transit, is a major boost to future access and mobility in Canadian communities," declared Canadian Urban Transit Association President (CUTA) and CEO Michael Roschlau. "Extending the Gas Tax Fund as a permanent measure is an excellent response to the ongoing needs for municipal infrastructure investment. This is a good news budget for transit," he added.

CUTA’s recent survey of Canadian transit systems reported a $40.1 billion need for public transit’s capital infrastructure for the period 2008-2012 for the maintenance and upkeep of the current systems,and for transit expansion to accommodate more riders.

On Parliament Hill, from left, are Canadian Director Robin G. West; MP Alexa McDonough, NDP-Halifax, NS; Halifax Metro Transit Special Advisor Brian Taylor; and CUTA Communicatios Director Maureen Shuell.

The McGuinty government in Ontario announced March 20, that it will invest an additional $1 billion this year to strengthen the municipal infrastructure and create about 10,000 jobs during construction.

"Building a system that moves people and goods quickly and efficiently will ensure we can attract and keep thousands of good high-paying jobs," said Minister of Transportation Jim Bradley.

This announcement builds on the province’s investment of $450 million in 2007-2008 for the Municipal Infrastructure Investment Initiative, consisting of $300 million announced in the 2007 Fall Economic Outlook and Fiscal Review and the $150 million announced at the 2008 OGRA/ROMA Conference.