Thursday, December 16, 2010

Things They Should Invent: use the TTC surplus to give everyone free rides

It seems the TTC has a $60 million surplus.

If they aren't allowed to keep and reinvest the surplus (I've heard that it isn't, but haven't been able to verify from an official source), they should be allowed to use it to give us free rides.

This idea was inspired by a comment on Torontoist by W. K. Lis. In response to the fact that the TTC is giving free rides on New Year's Eve at their own expense because they didn't get a sponsor this year, W. K. Lis said:

The TTC has a $60 million surplus this year. They would have to hand that surplus over to the city and then fight for it back next year. Better to use it up this year by giving it back to those who actually helped get the surplus, the riders. Even though it is only for one night.


That got me thinking: what if they did the same thing for more nights to use up the rest of the surplus?

According to this press release, it cost about $90,000 to provide free TTC between midnight and 4 a.m. on New Year's Eve. There are a few variables we're not seeing here (overtime pay, free fare increasing ridership and increased ridership increasing cost of free fare), but let's use that as a starting point to get the idea across.

If it costs $90,000 to provide 4 hours of free transit, then it costs 6*90,000=$540,000 to provide 24 hours' worth.

60,000,000/540,000 = 111.111111...

Therefore $60 million could buy 111 days (or just under 4 months) of free transit.

They might not want to use all of it, to leave some leeway in case of unforeseen circumstances or something, but maybe they could offer 2 or 3 months of free transit. Just announce "From January 1 to February 28, everyone rides free!" All Metropass subscriptions are suspended for these two months, and then the March Metropass is sent out as usual.

There would be a number of benefits. First and foremost, it would save Torontonians money! The poorest among us wouldn't have to wonder whether they should spend $3 on a bus ride or save money and walk during the coldest months of the year. There would be a bit more motivation for car people to walk rather than drive in bad winter weather, and every car that gets off the road will make life easier for the cars that are still on the road. Customer service might improve because TTC workers no longer have to worry about enforcing fare collection (my theory is that the need to enforce fare collection is at the root of most poor customer service). It would also get more people in the habit of taking transit, and some of them might stay in the habit. It's also possible the TTC could save money simply by not having to deal with fare media for a couple of months (don't have to print passes and transfers and tickets.)

Obviously the ideal is to reinvest the surplus, but if that isn't allowed they could certainly do worse than to give it back to Torontonians in kind.

2 comments:

laura k said...

Free rides could also serve as a "free trial" promo, helping more people get in the transit habit.

It would be great for low-income people, especially in the winter, as you say.

fpteditors said...

In the U.S. 1 out of 3 adults do not drive. The auto-system makes prisoners of the old, the disabled, the poor, and the young.