STM warns of big cuts to Montreal public transit next year unless it's bailed out

Montreal's transit corporationsays it could be forced to make majorservice cuts to its Metro lines and bus network next year ifit's not able to secureadditional funding to balance its budget.

The Socit de transport de Montral (STM) is facing a $62-millionshortfall for 2022. Without additional funding, the transit authority says Metro and bus service could be reduced by up to 30 per cent.

"This is a last-resort solution, which does not in any waycorrespond to the will of the STM, but which the company could be forced to put in place," said spokesperson Philippe Dry.

A document obtained by Le Devoir, whichbroke the news of the budget hole Thursday,outlines various scenarios being studied to reduce the agency's operating costs.

Slashing services by 30 per cent would save the corporation $150 million.Another option, whichwould save about a fifth of that amount, is to cut Metro service by 10 per centand bus service by fiveper cent.

"This is the scenario with the least impact on our customers," saidDry. This option would cut costs by$28 million.

About 200employees would be affected by these cuts. The job losses would happen through attrition.Approximately 11,000 people work for the transit corporation right now.

The STM saysany impact on service would not be felt until the fall of next year.

The budget shortfall is linked to a structural deficit that existed before the pandemicbut has been exacerbated by the health crisis, said Dry, citing adecrease in ridership and an increase incosts linked to public healthmeasures.

The STM estimatesits ridership is currently around 55 per centof what it was pre-pandemic. At the height of the crisis, inMarch of 2020, ridership had dropped to 20 per cent.

"For several months now, the STM has informedauthorities of the untenable financial situation in which it has founditself and of the heartbreaking choices it could be forced to make if other solutions are not put in place," said Dry.

The STM says authorities, like theQuebec government, theregional transit agency Autorit rgionale de transport mtropolitain(ARTM) and the city of Montreal, musthelp come up with financing solutionsif they want to ensure the continuity of public transit in the city.

Mayoral candidates weigh in

Withtraffic gradually resuming, particularlydowntown as people return to work, ProjetMontralsays maintaining service to encourage the use of public transit is "essential."

"The city is actively working with the ARTM and the government to find short- and medium-term solutions, while the revenues are there," reads a party statement to CBC Montreal. It did not provide further details.

If re-elected,Projet Montral has said itwill push for further Metro line expansions, includingthe Pink line, which was one of leader Valrie Plante'ssignature promises in 2017.

Plante has also said she would add 300 buses to the STM network, makeall public transit buses fully electric by 2025, makerides free for seniors and cut the cost of a pass byhalf for those aged 12 to 17.

Mayoral candidate Denis Coderre, who is also Plante's predecessor,saysthe city of Montreal has to take responsibility for the lack of transit funds.He says the city hasa vote in the STM's budget and shouldn't be usingthe transit giantas a scapegoat.

If elected,he says his party, Ensemble Montral, would address the funding issuefor the STMbecause "we believe in mobility and believing in mobility means collective transport and to do so,we have to provide services," he said at a Friday news conference.

Ensemble Montralhas said it would create a "commitment of quality" charter for public transit and a monitoring committee to ensure projects, such as the Blue line expansion, stick to schedule.

Mouvement Montralleader Balarama Holness didn't take questions about public transit at a Friday news conference.

Holness said his party would look at different streams of funding for the STM such asfocusing on increasing the STM's partnerships with private companies. And for those businesses, to later receive tax benefits for their green initiative, he said.

The province did not respond to a CBC News request for comment.

Dry saysthe STM's main objective is to "protect the level of service offered to customers as much as possible."

The transit corporation says it would be happy to sit downwith the government and the ARTMto look at where the money could come from and what form the financing could take, but it says major reductions to bus and metroserviceareinevitable without a bailout.