Archive for February 2015
What Works, What Doesn’t
San Francisco transportation planner Jeffrey Tumlin talked last night at SFU mostly about the experience of transit funding referenda in California. The presentation is available on video. Tumlin’s book “Sustainable Transportation Planning: Tools for Creating Healthy, Vibrant and Resilient Communities” is used as part of the Next Generation Transportation course.
Have you ever been to Phibbs Exchange? It is probably as bad as they get – a dreary, isolated and unpleasant place to wait for a bus, (and one I often use in my own discussions about what is wrong with transit here). Translink has a lot of room for improvement but “it’s also the best that I have worked for.” We invented transportation tax measure referendums in California, and if you think the current experience here is bad, understand that it is so much worse everywhere else. You are right to demand perfection, but don’t let the best get in the way of the good.
Alameda County in California has 1.6m residents in 14 municipalities and 6 unincorporated areas. The original transcontinental railway did not reach San Francisco – it reached Oakland where passengers transferred to ferries. Up until 1994 it relied on a gas tax to pay for transit but as “funding dried up” in 1986 they introduced a county sales tax, which was risky given that at that time other neighbouring counties didn’t. In a referendum in 2000 a tax increase was approved by 82% of the vote. In California any general purpose tax increase must be approved by at least two thirds of the votes. That means for a vote to succeed there must be no organised opposition since at least one third of the voters are ideologically opposed to any tax increase. There is no federal or state support for transit operations or maintenance. In 2012 Measure B1 a half cent sales tax increase failed at 66.53%. Measure BB in 2014 passed at 71%. That was because by that time there was a coalition “with everyone on it” which adopted a strategy of focussing on “investments that matter to real people”. Communications stressed improvements in safety, efficiency, local streets and maintenance. Some projects were identified but not fully funded. Many projects were tied to housing development and many stressed bikes and pedestrians. The county is half suburban, with over a 70% car mode split. Car drivers voted yes because they understood that if other people switched modes there would be more room on the existing roads for those who continued to drive. Doing nothing would make matters worse.
Transit demand is increasing faster than population growth. This is due to demographics. As the baby boomers age and retire, they drive less and the millennials have much less interest in car ownership. Housing prices are actually worse than Vancouver. For many people in a low wage service economy driving is too expensive when housing costs have to be met first. Much of the success of the coalition was from the understanding of the combined affordability of transportation and housing. Every county in California has a similar story. Los Angeles knows that for its economy to succeed they cannot continue to bulldoze neighbourhoods to build freeways through them.
Messages that work
- Stress people, not mobility NOT focussing on congestion relief. For instance, tell the story of the single working mother who has the challenge of getting her children to and from daycare/school and herself to work – and how expensive that gets if she has to drive.
- Use pictures of people, including seniors and people with disabilities and reflect the diversity of the population. Be culturally sensitive to those communities and produce written materials in their languages
- Stress the need for employers to attract and retain young talent – people who don’t want to drive everywhere
- Improve public health – reducing the obesity epidemic means walking has to be built in to daily lives
- Improve economic efficiency – the space needed to move an automobile is ten times more than any other mode. There is much more people moving capacity if they are not all in cars – for the same space.
- Accomodate aging adults – see “Best Cities for Successful Aging” – that means walkability and more transit
- Everyone should have the opportunity to succeed – which is where the housing and transportation affordability index comes in. “San Francisco is more affordable than Little Rock, Arkansas” simply because it has homes and jobs within easy commute distance and good transit. It is not just affordable housing – its the combination with affordable transportation options. In Little Rock houses are cheap but they are distant from jobs and the only way to cover that is by driving. You do not improve the competitiveness of your region in the global economy by forcing poorer people to live in remote suburbs where they have to drive.
COMPASS
Much has been made by the No side of the delays in introducing this smart card fare payment system. The Bay Area has been trying to get such a system established since 1993. It was originally called Translink. It was launched in 1993 and abandoned in 1995. Twenty of the larger transit agencies agreed to relaunch the idea in 2010 .
By 2015 only 15 of the 20 agencies have actually implemented the card. Now rebranded as “Clipper” it is hated by all. The problems are many and various. For instance in San Francisco alone there are six transit operators each with their own fare system and no coordination between any of them.
In fact there is no better transit system in North America than TransLink. Look for example at Boston, which is currently trying to de-ice 120 year old rail switches. Or Chicago where ancient wooden platforms on the El are disintegrating, dropping debris on the streets below and leaving foot wide gaps. Or BART which has had a disastrous 18 months. “You set the gold standard” for integrating land use, transportation, environment and social equity. In terms of cost effectiveness Vancouver ranks alongside much larger systems like London or New York. If you want to see disfunction look at New Jersey.
The one thing where Translink has fallen behind is communications. To some extent this can be attributed to Canadian culture and your dislike of “boasting”. But also Translink needs to get better at listening. Public officials need to be in the limelight all the time. There needs to be a greater focus [in the Yes campaign] on telling stories not wonkishness. In California the campaigns for funding measures last two to five years. Plan B must be to win next time. The new campaign starts as soon as this one is over and will be a lot of work. It has to identify outcome based performance indicators, not just dollars per ride. How you meet economic, environmental and social targets to show tax dollars are well spent. Every $1 spent on transit produces $5 of benefits.
Q & A
1 “I want better transit but I see the defects of Translink.” The BC Government is the problem. They give tax breaks to the corporate sector and do not step up to the plate to pay for needed infrastructure. We do not have a fair tax system.
We have many people who share your values. Sales tax is the worst form of taxation. It is regressive. The poor pay the most and the rich are the least impacted. But we have to live in the real world. The right solution is not necessarily the most workable one. The perfect is the enemy of the good, and the alternative is worse. Pressing for perfection is a recipe for not getting anything at all.
2 “Can we pull it off? In a month?”
Poll results are often different to polling – going both ways. There have been lots of surprises and rapid turnarounds in sentiment. The important thing is the delivery of the message to voters – mainly through tv and radio. There has been rightful criticism and it warrants a full response. The problem is that it is very hard to do that in a seven second sound bite. The Alameda County campaign relied on images and factoids.
3 The current provincial government was elected by the majority. The coalition has a very wide range of organisations within it. The question is did anyone’s views change as a result of your campaign?
Tumlin then conducted a quick straw poll of those present. Many there said they were “conflicted” supporting transit spending but mistrustful of Translink or disliking the sales tax. A few who came undecided said they had been persuaded by the presentation.
4 The next questioner linked the distrust of Translink to the pay of its CEO as “grossly overspending”
Tumlin gently pointed out that Translink is comparable to other agencies and that the cost of living here is very high, which makes it hard to attract people if you offer lower pay. There are some systems that pay less due to “the optics” – but they do not necessarily get the best managers as a result. You are actually talking about less than 0.1% of the budget
5 Gordon Price asked if privatisation – perhaps of parts of the system – was a way to improve performance.
At that point my notes stop as I stood up and positioned myself to reply to that assertion. I think Tumlin must have dealt with it effectively, as I then talked extempore about the campaign – and how Tumlin’s interview with News1130 had been received by the facebook trolls. I did scribble “governance – none is perfect – Portland Metro” which he said was directly elected – and is certainly an approach I would favour. Privatisation has been a disaster for public services everywhere: and worst bits of the Translink system are privatised – MVT runs HandyDART at much higher cost and lower service levels than the previous collection of mainly NGO and volunteer supported service providers. The Golden Ears Bridge and the Canada Line are P3 showcases of profit for the private sector at public cost.
6 How much do people save when they stop driving?
A media campaign is not an information campaign. The best facts are hard to explain. The cost of driving needs to include externalities, and needs to be expressed as an opportunity cost. That is a challenging message to deliver especially to the undecided. You need short messages for swing voters, you don’t have half an hour. It also depends on who says what: it has to be seen to be real. Campaigns that work bring on key people. We found that affordable housing advocates were key – once they got the tptn+housing affordability index thing sorted they could relay that to their clients in meaningful ways.
7 The first speaker got another turn at the microphone. “It is not right or equitable that the corporate sector gets the benefit of de-congestion at the expense of the people. There has been a $13bn loss of revenue due to tax cuts for corporations and that is being filled by fees and charges on the poor. It is a beautiful plan but I don’t want to pay for it. There is no Bill of Rights for users.”
You present an intelligent reasoned argument, which is valid from a good governance and policy standpoint. But it is a solution for the next provincial election not this referendum. It is possible for voter initiatives to rescind taxes – and you can go back every year. (He was obviously talking about the California Proposition legislation at this point, not necessarily BC.)
8 We are tribal social primates. We have no sense of belonging (I think he meant to the region) which has lead to a loss of trust. How do we deal with tribalism?
Metro Vancouver is a coherent economic unit and a very effective competitor in the global economy. It is more cohesive than many California metro areas. San Francisco is quite different to San Jose – but it is very difficult to put a simple line between them that does not have boundary effects. In terms of economic productivity the boundaries here are clearer and well set. By tribalism I think you mean that we do not want to pay for other people’s projects. I think the way to deal with that is to engage young people as they are better networked than anybody else – but then you also have to get them to vote. I think you do have here a sense of commonwealth which is missing in the US. You have no idea how bad things can get. No-one can get everything they want. You have to develop a sense of compassion for people who are different to you. We are not in competition. It is in my interest to help you become more productive. In crass politics give them what they need but not all that they want. It is an ugly process.
Hire a lot of young people and get them involved in the campaign. Get them to show up at the polls. The Alameda County proposition was lost by 731 votes!
9 Erica Rathje reminded those present that the federal government subsidises the fossil fuel industry with billions of dollars. We will have the opportunity to deal with that in this year’s federal election.
Do not punish yourselves locally by denying additional funding that your transportation system desperately needs.
10 The Hong Kong model which produces great transit at no cost to the taxpayer.
I am very much in favour of Value Capture. We use a lot of it in San Francisco. Development of land freed up by the removal of the Embarcadero Freeway for instance. The TransBay Terminal is being funded in part by Tax Increment Financing. Impact Fees on residential developments pay for affordable housing.
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REACTION
The meeting was large and well attended. Discourse was generally polite – except for some heckling when the first speaker made a long statement which appeared not to include a question. He did get a better reception later, and many people admitted to “feeling conflicted”. I agree. I do to. I think we are being manipulated. We do not have the same antitax Proposition 13 mentality here – and it should not be foisted upon us. I think the speaker was right when he said that if this sales tax proposal is approved, the province can then withdraw from funding transit expansions and concentrate on its favourite road building projects. But I think he missed how much provincial politicians love to cut ribbons on SkyTrain extensions. It will be interesting to see, if Linda Hepner has to proceed with her Plan B, if the province co-operates. Though that risks creating the multi-agency mess that sank the TransLink card in the Bay Area and bedevils their Clipper.
My understanding is that the problems of the Bay area are more of Fares Integration and Service Coordination are at the heart of the Clipper problems rather than technology issues. When I came to Canada in 1988 it was to work on FISC between the TTC and GO Transit who had incompatible mag swipe and optical reader tickets respectively. But the problem was not one of technology – a clumsy “TwinCard” approach fixed that – but rather incompatible tariffs and service objectives. Much has changed in the Toronto region since but transit mode share regionwide has not advanced by very much. And the number of agencies has actually increased. The battles in the Bay Area are I think similar and are reflected in the number of agencies and their local loyalties. It would be very sad indeed if one of the outcomes of losing this plebiscite is that Translink were broken up into municipal fiefdoms but that seems to be in the back of the West Vancouver Mayor’s mind.
As to Value Capture I must say that I am not all convinced that our developers will welcome the Hong Kong approach here. They have been infuriated by suggestions that Translink here get into the property development business. My experience with the first TTC Sheppard Subway proposal was that when developers heard that value capture of station developments would pay for the line construction, they would not give up so much of their profits and would be able to make more by simply taking their development proposals to adjacent municipalities outside the TTC service area. I have also heard here that many developers are becoming averse to the current Development Cost Contributions regime – which they see as capricious and open to abuse. The municipalities meanwhile point out that DCCs pay for parks and schools, community centres and sidewalks, and other desirable amenities. They do not wish to relinquish this source of funding to the regional transit system which has more nebulous local benefits, in their view. Here is more about the use of value capture for rapid transit.
Oh and as for privatisation read this
Two Carbon Talks on the Plebiscite
The meetings are at lunchtime in Surrey and Burnaby, and I won’t be attending either of them. The rest of this post is taken from an email I got today. If you are in the area – or you know of someone who will be – they are free but you have to register
The transit referendum campaign is currently underway and you’re invited to our next two Carbon Talks on the subject. In partnership with Moving in a Livable Region, an initiative of the SFU Centre for Dialogue, we are pleased to present two public dialogues one in Surrey and one in Burnaby.
See below for more information and please forward on to your friends and colleagues. For more information on the transit and transportation referendum, see Moving in a Livable Region’s referendum page
Transit Vote Surrey: Rapid Transit for Rapid Growth
Surrey is one of Canada’s fastest growing cities and has major transportation needs. With the transit referendum around the corner, what’s at stake?
When: Monday, March 9 from 1:00 – 2:00 PM
Where: Room 3090 at SFU Surrey Campus
Transit Vote Burnaby: Congestion, Health, and Livability
A congested transportation system has consequences for emissions, health, and livability. Join us to hear from experts on how these subjects relate to the transit referendum.
When: Tuesday, March 10 from 12:00 – 1:15 PM
Where: Fraser-Thompson Room of the Diamond Alumni Centre, SFU Burnaby Campus
How to become a Climate Reality Leader
This turned up in my email today.
I was intrigued enough to do a bit of follow up. Iowa, Florida or Canada? Well no surprise when Canada turns out to mean Toronto. At this point my interest flagged.
I must admit I enjoy being retired. When I was at work, I used to sleep well, because I was able to fantasize about a life that did not include work. Now I am living that dream, my actual dreams are often of being back at work. Closer to nightmares really. But then I read this story about Hazel McCallion getting a new job. At 94!
Anyway, they asked me to share this email with a friend or two. That would be you.
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Debunking the “NO” campaign
Last week Mario Canseco published the latest Insights West poll that showed intending No votes edged ahead of Yes votes. It seemed to stem from the Translink’s Board decision to remove Ian Jarvis as CEO but, rather than pay severance (a lot of money to do nothing) they retained him as an advisor – and also appointed a temporary CEO. This action seemed to play into the hands of the CTF who have decided to target Ian Jarvis and his salary as evidence of “waste”. Now Translink seems to be paying two CEO salaries.
I am not sure if Canseco was actually in the field at the time this decision was made. But even so, a number of articles and blog posts have appeared around the issue. So rather than duplicate them I am going to summarise their findings. This should enable YES supporters to counter some of the most frequently heard talking points – nearly all of which are based on misinformation.
Firstly, the accusation that Translink is incompetent – and lags behind other systems
Source: Peter Lander, Business in Vancouver December 2014
TransLink’s … performance successes:
•A mode shift – out of cars into transit, walking and cycling – that is unmatched in North America. The number of trips by transit is up 80% since 2000.
•By far the highest per capita transit use among other cities our size in North America – three times more than Portland, the next highest city.
•The third-highest per capita transit use in North America, after only New York and Toronto.
•The lowest-operating-cost light rail network in the world, more than covering operating expenses from fare box revenues.
•The Canada Line built on time and on budget and beating revenue targets – projected to have 100,000 daily riders by 2013 but hitting 120,000 by 2011.
•An overall 7.4 out of 10 customer satisfaction rating in the last quarter.
Secondly that Translink is “wasteful” as evidenced by its executives’ salaries
“the items commonly cited as examples of TransLink’s storied wastefulness add up to a mere fraction of one per cent of its annual expenditures. In other words, the vast majority of the organization’s budget goes to the vital public services we rely upon it to provide”
source David Bancroft in Rabble with his source embedded
Actually, public sector CEOs get paid considerably less than equivalent private sector CEOs but the Vancouver Sun helpfully lists highest paid public servants in BC which shows Ian Jarvis as well down the list of the top 100. Not nearly as much as the CEOs of the port, airport, ICBC or BC Hydro. And certainly not nearly as much as the people who oversee my pension fund. (see note at end of this post)
This week I will be going to listen to Jeff Tumlin at SFU – again. I reported his talk here a couple of years ago. He is quoted by News 1130
“One thing that we have learned however is that the best thing to do to make your transit agency worse off is to de-fund them. That taking away money from them in order to demonstrate frustration only punishes the people who are reliant on the transportation system.”
Looking at all basic performance metrics, he says TransLink’s problems are far better managed than anywhere else.
Who is he? The principal at Nelson Nygard, one of America’s “most innovative consultants” (Price Tags)
I posted that on facebook – and it got one of the most vituperative responses when someone else copied it to their profile. So not my followers – and quite possibly the people who Norm Farrell identifies as paid trolls for the BC Liberals. By the way, I have the greatest of respect for the work he does on his Northern Insights blog. It just saddens me that he seems to have got caught up by the CTF rhetoric. But not to worry, Darryl de la Cruz rides to the rescue with some exhaustive analysis which shows what happens when you compare like with like. I doubt that the people who listen to the CTF will have the patience to plough through this stuff, but it essentially repeats what often has to be said to people who try to compare Translink’s region wide coverage, to other transit systems with a much more restricted remit.
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And on February 25 Pete McMartin brings his MSM spotlight to bear on Daryl’s blog with this conclusion
The comparisons the No side are using are intentionally misleading and meant to cause anger.
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As Peter Ladner pointed out TransLink is not on the referendum ballot – but if it was
“They’ve tightened operations over the past few years. I don’t think they’re wasteful,” said independent commissioner Robert Irwin after his 2013 review. Spending is “reasonable” and employee compensation is “reasonable when compared to other organizations of similar size,” concluded an independent 2012 provincial government audit, prompting then-minister of transportation Mary Polack to say, “Everyone agrees that TransLink provides a world-class service that is the envy of many jurisdictions.”
Voting NO cannot bring about change in Translink’s governance, which is actually their weakest point but one which the CTF seems to ignore. And, of course, is something that Christy Clark appears not to understand.
There have been some pretty dreadful decisions at Translink. The Golden Ears Bridge – which was as bad as the Port Mann at predicting toll revenues – sucks money out of revenues that ought to be supporting transit. The reorganisation of HandyDART, and subsequent freeze on service levels. Going to one contractor actually increased costs significantly and produced worse service. Trip refusals surged so they simply changed the way they collected the data. The Canada Line – which is now overcrowded but cannot utilise all the trains it has due to costs of its P3 contract. In fact, contracting out seems to cover all three problems I have identified here. And I would blame Cubic for the failure to deliver Compass on time if that did not let Kevin Falcon off the hook for his decision to impose unnecessary fare gates in the first place.
In fact most of the problems that beset Translink at the moment all have their genesis with the provincial government. Christy Clark has done one brilliant job: she has deflected all the criticism of her failure to authorize adequate resources for running the transportation system in BC’s largest metropolis onto an organisation that she herself controls. It is an appointed Board – with a bafflingly complex system of appointment to disguise the very limited range of qualifications of its appointees. No-one represents the users of the system, and there are only two of 20 Mayors on the board, both very recent appointments.
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POSTSCRIPT I wrote that paragraph a day before this Pete McMartin column appeared in the Vancouver Sun
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Voting NO is not going to change anything. (See this Stephen Hume opinion piece in the Sun for more)
Actually Voting YES might have exactly the same result – since we are not voting in a binding referendum but rather an advisory plebiscite. Christy can look at the result and claim it is not representative enough, or even claim poverty – given that there is a budget surplus of ~$1bn this year I doubt even she has the chutzpah to pull off that one, but blaming the Mayors for the current mess shows how she rolls.
And now a complete and up to date post of Translink myth debunking is on VanCityBuzz
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Note: thanks to Norm Farrell for this information about the BC Investment Management Corporation
This occurred at roughly the same time that the BC Public Service Pension was effectively cut: pensioners were required to pay for MSP and Blue Cross coverage, which had previously been paid by the employer. We were told that this was necessary to protect the value of the pension fund. No mention was made of the increase being paid to BCIMC who manage the investment of the pension fund. Note that Doug Pearce in 2014 was making nearly as much in a week as Translink’s new temporary CEO makes in a month.
The Arbutus Corridor Dispute
I was back on the CBC TV suppertime news last night. CP have sent in the bulldozers again to restart the work on their long disused track from Marpole to Burrard Bridge. They are down at the south end of the line now, back where they were ripping out gardens last year before the the City tried to get an injunction to stop them. Unsurprisingly, the courts were reluctant to stop CP from trying to make their tracks capable of carrying trains again. Except, of course, there is no reason for CP to do so: not one that makes any commercial sense that is. CP are not interested in carrying people: they are freight railway. There are no customers now on the line. That is why there have not been any trains: for years. The track has simply been left to return to nature. CP is obliged to maintain the road crossings as it has not formally abandoned the track. But the only reason it is clearing away encumbrances is to try to get the City to raise its offer. The corridor is designated for transportation use in the City plan. That also was established in court. CP is not able to sell the land to developers, so the City is the only potential buyer. And they do not put the same price on that strip of land as CP does.
UPDATE
I have been out taking photos of the ongoing work by CP and putting the images on my flickr stream
SPEC has a very interesting history of the line on their newsletter this month
“Gardens started along the tracks as “Victory Garden’s” during WWII and were tolerated by BC Electric Railway Co until 1952 when CPR took over the line and continued to permit those gardens and, over the decades, allow others to be built. For as long as they ran trains on this line, gardens thrived along many stretches of the Arbutus Corridor – What happened to that CPR?”
FACT CHECK: “No” to Transit side is misleading voters with mythical math
A Mayors’ Council press release
A “Yes” to Transit vote would cost average households $125 a year
FOR IMMEDIATE RELEASE February 6, 2015
Vancouver, BC – The “No” side’s baseless claims, mythical math and random calculations demonstrates they are not producing facts to back their arguments. In this latest claim, they have no idea how households really spend their money and how the PST is applied to goods and services.
The Mayors’ 10-year plan to improve transit and transportation as the region grows by one million more people will cost the average household $125 a year. That’s about 35 cents a day. The mayors’ calculation considers how much money households make and how much they spend on PST-eligible items. They also looked at how much of the tax would be paid by households, businesses and visitors, to come up with a realistic cost for an average household.
In fact, households making less than $100,000 per year – about 70% of Metro Vancouver’s households – will pay between $53 and $116 per year for more buses, better roads and more transit options.
Our Plan | “No” to Transit | |||||||||||||||||||||
· Classified six income categories.
· Used Statistics Canada Survey of Household Spending by income to:
Determined the annual cost per average household
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Divided $250 million (total funding required) by 967,948 (total number of households). | |||||||||||||||||||||
= $125 per household | = $258 per household |
The “No” to transit side wants us to do nothing. This will cost the region untold millions in economic costs as traffic gets worse, and mean you are stuck in traffic and on transit longer.
The Mayors’ Council will continue to share information and updates on activities at www.mayorscouncil.ca.
Elizabeth Ball seeks ‘dark sky’ legislation for Vancouver light pollution
I do not listen to talk radio – not even worthy programmes such as Rick Cluff’s Early Edition on CBC. My political sympathies are usually somewhat distant from the NPA – but that doesn’t stop them having Really Good Ideas. I hope that Vancouver City Council gives this one a careful hearing.
Whenever you fly at night time across North America, all you have to do is lift the blind on your window to see light pollution. It is of course the result of our obsessions with our need for security and safety. But streetlighting need not light up the sky.
My own personal concern with this is not actually about street lighting, but the practice of lighting private sector parking lots at night. And she has that covered too “putting limits on lighting on private properties like illuminated signs and flood lights.”
It is a huge waste of energy, of course, and one that could be easily reduced. And while Elizabeth Ball rightly concentrates on health impacts, my own desire is simply to be able to see some stars on clear nights. The CBC is very good at telling us when the Perseid meteor showers might be visible – or even the Northern Lights! But from our 6th floor windows the only lights in the night sky come from passing aircraft.
UPDATE Feb 4
Transit Ridership has NOT been “flat”
One of the frequently used speaking points of the no side has been the claim that costs have soared while ridership remains flat. Not true. You are entitled to your own opinions but you are not entitled to your own facts. Metro Vancouver has recently “upgraded” its website. You can find this table there but for reasons I cannot understand the link in my browser address bar doesn’t translate to a usable link for you. And just searching Translink’s website is, as usual, frustrating but here is the data as a pdf
And here is the best analysis I have seen yet of the motivation of the NO side
“Transit tax” will be the same as Provincial Sales Tax
It is not often I see a Press Release on a Sunday lunch time. It is reproduced entire below. The retailers were getting concerned at the potential for all sorts of complexity to be introduced by the new “Metro Congestion Improvement Tax”. Those fears can now be laid to rest. Good.
February 1, 2015
Mayors’ Council on Regional Transportation Welcomes Minister Stone’s Letter on Collection of Metro Congestion Improvement Tax
Vancouver, B.C. – The Mayors’ Council on Regional Transportation welcomes Minister Stone’s letter, received last night, regarding collection of the Metro Congestion Improvement Tax (MCIT).
Minister Stone’s letter confirms the MCIT, which will fund new transit and road improvements in the mayors’ Plan, will be harmonized with the existing Provincial Sales Tax.
“We’re pleased with the announcement that they are harmonizing the collection of the MCIT with the existing PST. This will address concerns that the retail sector and others had, and eliminate any further confusion about exemptions and administration of the tax,” said Vancouver Mayor Gregor Robertson, chair of the Mayors’ Council. “This clarity is critical for a ‘yes’ vote. ‘No’ is not an option. We need these improvements to prepare for one million more residents.”
Of note in Minister Stone’s letter:
- The Province reiterated that revenues collected for transit will be subject to independent audits and annual reviews.
- The Province has confirmed that the tax base for the MCIT will mirror the PST tax base.
Mayor Robertson confirmed that the Mayors would not be seeking additional exemptions:
“Application of the PST to the tax base has always remained a provincial responsibility and this harmonization provides seamless administration. We want to ensure that simplicity continues so we will not be requesting any further exemptions.”
This ensures that essential items such as groceries, children’s clothing, transportation expenses, prescription medication and other basic goods and services will be exempt from the tax.
“Residents and businesses can now vote ‘yes’ for the plan for better transit knowing that the MCIT will be collected in the most efficient and fair way possible,” added Surrey Mayor Linda Hepner, vice chair of the Mayors’ Council. “Thanks to the this decision, voters can be confident that a 0.5% regional increase to the existing PST is fair and will only cost the average household 35 cents a day for more buses, better roads and more transit options.”
The move will ensure the economic efficiency of the tax, which is critical to supporting the integrated economic development strategy supported by the Mayors’ Council plan, a vision that includes consideration of the importance of goods movement.