Measures Needed to Address TransLink’s ‘Broken Funding Model,’ Says CEO Kevin Quinn
TransLink has announced $90 million per year in cost reductions and revenue-generating measures to address an imminent funding shortfall. Metro Vancouver’s transit provider says these measures will partially address an annual funding gap of over $600 million starting in 2026, after provincial relief funding ends.
Cost-cutting measures include corporate cost reductions and reduced staffing. The plan also identifies opportunities for additional revenue and improved debt management. While these measures do not include cuts to transit services for customers, TransLink warns that service reductions may be necessary in the future if long-term funding is not secured.
CEO Kevin Quinn stated that TransLink had to make “tough, but necessary decisions” to deal with the shortfall. “The urgency of solving this crisis cannot be understated, as we will be forced to look at service reductions at the end of 2025 should a solution not be found for our broken funding model,” Quinn said.
Key cost-cutting initiatives include eliminating 35 unfilled corporate roles, reducing spending on third-party contractors, research grants, leadership training courses, and ridership development and community initiatives. Additionally, fare evasion enforcement across the system will be increased.
TransLink says the new initiatives will start immediately to address challenges brought on by increasing costs and ongoing expansion projects. The transit authority also cited declining fuel tax revenue and fare hikes that are lower than the rate of inflation as reasons for the cost-cutting measures.
Earlier this year, B.C. announced new funding for TransLink to reduce overcrowding. The province said the money will go toward purchasing buses to increase future services, while TransLink will put remaining funds from the $479 million provided last year toward immediate improvements.
