In July of 2016, Mayor John Tory and city council directed the TTC to reduce it’s 2017 operating budget by 2.6 per cent without affecting existing service.
On Friday, the commission said they would be able to comply through various cuts and the cancelling of planned service increases for the remainder of 2016. The moves would generate the estimated $16 million needed to meet the order.
Some of the fiscal moves outlined by the TTC include:
- Saving of $1.5 Million with the cancellation of service increases deemed as not vital
- Saving of about $1 Million on infrastructure including office expenses and IT
- $800,000 cut in overtime spending
- Saving of $600,000 by having fewer standby workers
- Saving of $300,000 by eliminating landlines for employees already holding a company mobile phone
In addition, there are estimated savings of about $10.3 million due to a trend in health care claims declining among employees, and the slow development of PRESTO software needed for the card which will delay and push back some costs by almost half until the end of 2017.
However, the commission is quick to point out that none of this deals with costs which need to be addressed in the new year related to the Spadina Subway extension to York, PRESTO implementation, vehicle maintenance and wage and benefit increases.
The transit agency says the TTC board will meet September 21st to review the preliminary operating budget for 2017.
TTC staff achieved the 2.6% reduction for 2017. Committee meets Sept 21 to review preliminary operating budget. https://t.co/3GeQbWBxuw
— Brad Ross (@bradTTC) September 16, 2016