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Transit plans target needy
LTC: One city proposal would subsidize all living in poverty
By PATRICK MALONEY, THE LONDON FREE PRESS
A staff report going to politicians Monday gives options for replacing the program, which provides $475,000 annually to discount passes for seniors and the blind, with one that would instead be based on financial need.
"You can't just designate one group" for the aid, says Jim Hewett of Community Living London, which supports adults with intellectual disabilities, many of whom live in poverty.
"There's got to be a more equitable process. There's got to be a (financial) means test so (those under) the poverty line have access to transportation."
A single Londoner making less than $15,538 a year is considered below the poverty line, according to Statistics Canada.
The proposed changes would "recognize that subsidized bus passes is about income and not age and ability," said Ross Fair, the city's community services manager.
The report cites several figures for the cost estimate, the highest being $25 million -- which would provide a free bus pass for 25,000 Londoners living below the poverty line. A 50% subsidy for all would cost half that, $12.5 million.
Both numbers are dismissed in the report as "not affordable for the municipality."
But 10% of Londoners use public transit, the report states, and assuming that same amount of Londoners living in poverty rely on buses, it would cost $1.2 million to offer a 50% subsidy to that segment of the poor.
Another option, keeping the funding at the existing $475,000 while opening access to all the city's poor, would fund fewer than 1,000 annual passes and likely create a waiting list.
Michelle Palmer, Community Living London's executive director, says the city has to increase funding if it's opening up the program to London's poor.
"To just take the same amount of money and spread it to that many more people is creating a negative impact for those people who received that subsidy for so many years," she said. "We've never said 'take away from them and give it to us.'
"What we're truly saying is we believe there's a need for a fair and equitable program across the board, rather than targeting a specific group."
Hewett, one of several people set to address the committee about the issue Monday, says he's less concerned with how much is spent than he is with establishing an income-based program.
In comparison, according to the report, Waterloo offers a reduced transit pass to low-income adults. Capped at 1,500 participants and with a 2008 budget of $438,000, there's nearly always a waiting list.
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BY THE NUMBERS
With city hall considering subsidizing bus passes for low-income Londoners, there are several financial estimates linked to different options. They include:
$475,000: The existing amount, which now discounts passes for seniors and the blind, would cover a 50% subsidy on 977 yearly passes. Demand from an expanded program would outstrip supply, likely creating a waiting list.
$1.2 million: That's enough to subsidize nearly 2,600 annual passes and, with an estimated 10% of those eligible using public transit, a waiting list may not be needed.
$25 million: Estimated cost of giving a free bus pass to 25,900 adult Londoners living in poverty. A 50% subsidy for them would cost half that, $12.5 million. Both amounts are "not affordable" for the city, staff say.
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