City of Ottawa 2011 Transit Draft Budget
I know that the population of Ottawa has grown approximately 10 percent since Amalgamation in 2000. You will see the real numbers in the next census. However, Transit expenses have doubled since 2002 alone.
There are reasons for incremental increases in annual transit expenses, but you would have to come from another planet to accept a doubling in expenses in 9 years.
The Ottawa Councillors that operate their own incorporated businesses would be bankrupt if expenses were allowed to increase in this fashion without a similar increase in real income. Thank goodness that some of the left leaning councillors were defeated or retired prior to the recent election.
Transit income from ridership and other services rose from $98,303,000 in 2002 to $150,290,000 in 2008. The Transit revenue forecast for 2011 is $168,890,000. This 2011 projected revenue figure is somewhat optimistic given the historical trend of real annual revenue increases. The revenue numbers are up due mostly to individual bus fare increases, not from the slow growth in actual ridership.
Taxpayers have to make up the difference between the gross expense and ridership income. Wow!
The total cost of the Transit operation in 2002 was $196,187,000. The 2011 Transit draft budget expense is projected at $402,848,000.
The majority of the increased expense is attributed to Salaries, Wages and Benefits. In 2002, this expense was $92,927,000 and proposed at $238,878,000 in the 2011 budget. That’s a 157 percent increase in employment costs if the 2011 budget is accepted by councillors.
On the other hand, total Full Time Employees (FTE) in 2002 numbered 1,742. In 2008, the official number was 2,142. In the 2009 budget, the 2008 number was restated at 2,748 and now in the 2011 draft budget the number jumps to 3,055. No matter what numbers you believe, you can readily calculate that the increase in the number of employees has not come anywhere near the ridiculous employee expense increase.
I am not quite sure why the employee numbers changed, but it may have something to do with the operations related to a new 2009 category of expense referred to as Transit Equipment. I am looking for the answer to this now. The “Gross Expense” of the department has jumped from $330,293,000 in 2008 to a proposed $402,848,000 in 2011. That’s a lot of money.
The Transit Department’s 2010 overtime expense is estimated to be $17 million. The 2011 overtime budget for transit is projected at $12 million. Only time will tell if the department is dreaming in colour. Expenses only seem to go up in this department, not down.
If you want an example of “out of control” spending, you are looking at it. Weak management, leftist councillors and a very serious militant union have allowed this situation to come to a boiling point. Inadequate provincial restraints in policy and unelected arbitrators are also all collectively responsible for this fiscal mess.
The provincial government must make transit an “essential” service in all major Ontario cities and implement a three year wage freeze in order to bring salaries more in line with the private sector. In addition benefits including pensions, must be reassessed and reduced. All benefit costs must be subject to competitive bids.
Part 2 of the 2011 City of Ottawa draft budget will provide you comments on Fire Services.
Bill O’Malley
