OC Transpo projects $11.5M deficit for 2015

OC Transpo has frozen discretionary spending and cut five managementpositions to deal with its projected $11.5-million deficit for 2015 as the city plans totransfer$7.7 million from the capital budget and dipinto reserves to cover the shortfall.

The $11.5-million deficit representsabout 4.6 per cent of OC Transpo's budget.

OC Transpo's general manager,John Manconi, told the city's transit commission Monday that ridership continues to remain flat, which is affecting revenue, along with a high number of insurance claims, costly maintenance and repair and other factors.

He said something has shifted, makingOC Transpo'sridershipmodelling tool no longer able to predict numbers accurately. The model uses employment levels, weather and gas prices to predict ridership, among other factors.

OC Transpo staff suspect that the redistribution of public sector jobs outside of the downtown core ispartly to blame for stagnant ridership, Manconi said.

It's too early to say whether fares will be increased in 2016. Budget talks for next year begin in October.