1. Advancing the Agenda Richard Joy VP Policy & Government Relations Toronto Board of Trade Moving Forward Forum May 11 th, 2012

2. Objectives 1 I.Why is gridlock a problem for public and business? II.How BIG is the problem in Region? III.What are the constraints of status quo public finances? IV.What options do we have to pay for transit expansion? V.How can we advance solutions? VI.What does the journey forward look like? VII. Evidence that public is leading politicians

3. Gridlock has become the # 1 issue for both public & business 2 $6 BILLION/yr Lost in productivity & longest commute times $6 BILLION/yr Lost in productivity & longest commute times

4. Our challenge is to finance the world’s largest regional transit expansion initiative 3 $50 BILLION+

5. Scale of The Big Move rivals that of other major global infrastructure projects 4 BIG DIG - BOSTON CHANNEL TUNNEL - BRITAIN/FRANCE THREE GORGES DAM - CHINA $16-billion $38-billion $28-billion

6. Regional municipalities lack the fiscal capacity to build new transit infrastructure 5

7. Province also cannot afford to advance transit expansion at this scale 6 Context: Ontario’s Limited Fiscal Capacity 2001 - 2031

8. 7 “Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012) “Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

9. Toronto Board of Trade has led the public conversation about new revenue tools Large ($1B/year +) Medium ($500M - $1B/year) Small (under $500M/year) Parking surcharge Regional sales tax Gas tax Vehicle kilometers traveled Road pricing – tolls Road pricing – congestion pricing National transit strategy Predictable, long-term senior government funding Infrastructure bond Employer payroll tax Tax increment financing Land value enhancement High Occupancy Toll Vehicle registration fee Utility levy Full-cost recovery transit fares 8 The Move Ahead Released May 2010

10. Regional Transportation Coalition Strategy: Public Engagement Campaign (Social Change) Mandate: Create the “winning conditions” to grow public will and ultimately, political commitment, to consider a variety of dedicated revenue tools to fund, implement and sustain a regional transportation plan. 9

11. The long journey towards progress is reaching a crossroad 201520142013 Plan A: METROLINX Financing Report Timing Plan B: METROLINX Financing Report Timing PROVINCIAL ELECTION 2011 PROVINCIAL ELECTION 201-? City of Toronto Financing Report 200820092010201120122006 10

12. Public is showing that it is leading the politicians on the gridlock issue 11 By Region April 2012

13. 12

14. 13 APPENDICES

15. CONFIDENTIAL Revenue Tools The Greater Toronto Area has among the worst traffic congestion in North America, with one of the longest commute times. The next few questions are about ways to reduce congestion in the GTA, including: finding ways to fund the building of new, more efficient rapid transit options, and improving road and highway travel.

16. CONFIDENTIAL User vs. Society Pays 63% of drivers surveyed supported user-based fees (transit fares, tolls, parking) to pay for transportation improvements as opposed to society- wide taxes (sales tax).

17. CONFIDENTIAL Drivers show moderate support for revenue tools to pay for transit expansion….

18. CONFIDENTIAL …with little variation in support between tools… How reasonable are revenue tools to raise funds for transit expansion/ transportation improvements 58% thought tax on commercial parking lots was somewhat or very reasonable 57% percent thought a toll was somewhat or very reasonable 54% percent thought a 1% sales tax was somewhat or very reasonable

19. CONFIDENTIAL Revenue Tools (con’t) 46% percent percent of drivers thought a regional gas tax increase of 2 cents to fund transit build in the region was somewhat or very reasonable 54% percent of drivers who commute by major highway were likely to pay to use an optional express lane that would allow them to by-pass highway congestion (HOT lane)

20. 19 EXTRA SLIDES TO CHOOSE FROM

21. Our challenge is to finance the world’s largest regional transit expansion initiative 20 $50 BILLION+

22. 21 “We need honest discussions on other revenue solutions.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

23. 22 “Much of the region’s public infrastructure is nearing full capacity and gridlock is already a problem. Public transit, surely part of any solution, will be costly. There has been little discussion of either the action needed to meet this challenge or the consequences of failing to act.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

24. 23 “Public transit, surely part of any solution, will be costly. There has been little discussion of either the action needed to meet this challenge or the consequences of failing to act.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

25. 24 “Public transit, surely part of any solution, will be costly. We need honest discussions on other revenue solutions.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

26. 25 “Overcoming this massive funding gap is the elephant in the transit room. Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012) “Overcoming this massive funding gap is the elephant in the transit room. Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

27. 26 “Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012) “Engage citizens in an open, public dialogue on how best to create new revenue sources for future transportation capital needs.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

28. 27 “Overcoming this massive funding gap is the elephant in the transit room. With few exceptions, public discourse on the actions needed to meet this challenge — or the consequences of not acting — has simply not materialized with any degree of province wide prominence.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012) “Overcoming this massive funding gap is the elephant in the transit room. With few exceptions, public discourse on the actions needed to meet this challenge — or the consequences of not acting — has simply not materialized with any degree of province wide prominence.” -Don Drummond Commission on the Reform of Ontario's Public Services (2012)

29. Regional Transportation Coalition Current Membership RCCAO The Pembina Institute Ontario Trucking Association Ontario Motor Coach Association Mowat Centre for Policy Innovation Toronto Real Estate Board York University Pollution Probe Building, Industry and Land Development Devon Group Ontario Home Builders’ Association Woodbine Entertainment United Way CAA South Central Ontario 28

30. Regional Transportation Coalition 29