TransLink and the Taxing “Tug-of-War”
(Image courtesy of CBC)
TransLink, the BC government, and the Mayor’s Council on Regional Transportation have recently announced intentions to expand transit services for the Metro Vancouver region – a move that will cost taxpayers a whopping $312 million in operations funding. The Minister of Transportation and Transit, Mike Farnworth, announced the funding earlier this month, which is expected to “defer” potential cuts to transit services.
However, late last year, TransLink approved a budget that included $72 million in expected cuts to its annual operating expenses. This ongoing “tug-of-war” between transit service cuts and new spending promises creates confusion for taxpayers trying to understand where their money is going.
Additional measures include a 0.5 percent property tax increase and a five percent raise in transit fares, beginning July 2026. In addition to these acts, there is an increase in the YVR AddFare for trips from the airport, also starting July 2026, and off-street parking taxes are moving from 24 percent to 29 percent.
The Future of Transportation Solutions
All of these measures, plus the $312 million investment, are expected to keep TransLink financially stable until the end of 2027 and have benefits like increased services, including adding new bus routes.
The 2025 investment plan would have to be first approved by the TransLink board and would seek final approval from the Mayor’s Council, despite the provincial government's statement that all parties are in agreement on the plan.
Although the taxpayers bear the majority of these measures, this is still expected to only be a temporary solution while seeking long-term fixes. Denis Agar, executive director of transportation advocacy group Movement, told CBC that this is a “Band-Aid” that gets us on the path to a “permanent solution.”
A Balancing Act
According to an independent Efficiency Review, it is difficult to cut costs without cutting the actual transit services provided, as 85 percent of costs are directly invested into the frontline transit service provided. Since 2017, BC’s provincial government has spent more than $11 billion in combined funds to support the TransLink services.
The problems TransLink faces highlight the balancing act of a public transportation company that tries to provide quality service, but also doesn’t constitute a sunk cost from tax dollars in BC.