Two concerned citizens have stepped up to propose a solution they claim would solve TransLink’s well-publicized funding woes: a 0.5 per cent increase on sales tax in Metro Vancouver.
Nathan Pachal and Paul Hillsdon, a pair of young transit advocates who blog about sustainable development, took matters into their own hands and spent a year researching a new way to fund pricey transit projects and upgrades in the region.
“There’s been a lot of talk, a lot of plans thrown in the air about how to pay for it. We decided to go and have a serious look, crunch the numbers and figure out what’s the best way to fund all the infrastructure that we need,” said Pachal.
Pachal and Hillsdon say $6.5-billion is needed to fund a selection of transit improvements, based on TransLink's own studies of the proposed projects that include a SkyTrain route along Broadway to UBC, two new light rail routes in Surrey, and seven new B-line routes around the region.
They estimate their proposed tax increase could generate $250 million annually, which they say is how much new funding TransLink needs to find in order to immediately start building the proposed rapid transit projects.
The two advocates think a sales tax hike would be the fairest option.
“First of all, you don’t want to punish drivers for transit,” said Pachal. “We looked at sales tax as being something that’s equitable for all users. Because it’s attached to PST, it also helps those who might not be in the best financial situation because it doesn’t apply to basic things like groceries.”
He estimates the tax increase would amount to an extra 35 cents a day for a typical spender, or roughly $40 a month for family of four, depending on how much they buy. He added it could mean huge savings for families who could give up a car if better transit services are implemented.
In their proposal, he and Hillsdon also argue that funding transit yields economic benefits from reduced collisions, cleaner air, travel time reductions and health benefits from spending less time in cars.
Pachal, a Langley resident, is hopeful people in the Lower Mainland will like his proposal, citing evidence from other cities. For example, voters in Los Angeles County, which Pachal points out is “known for being car-centric,” voted in a very similar plan in 2008 with a two-thirds majority.
TransLink has long been looking for new revenue sources as its three main funding sources aren’t meeting their needs.
Some of their money comes from gas tax revenue, which has been declining because of fuel efficiency in vehicles – and would only decline further if more people choose transit over private cars. Another source is property taxes, but regional mayors have been reluctant to raise those taxes to fund transit. Finally, raising fares is the other option, but TransLink opposes more increases as they would discourage transit use.
Pachal and Hillsdon aren’t the first to look at a sales tax increase, as Metro Vancouver mayors have already been considering it, but the mayors have been looking at a more modest increase of 0.1 per cent.
Regional mayors will be meeting with the provincial government next week, and transit funding will be high on the agenda – perhaps even more so if this new proposal gets enough traction.
