Kamil Khan's Sauder Blog

Lack of revenue combined with Skytrain expansions spells disaster for Translink

Translink is in hot water. Amidst growing concerns of managerial issues, infrastructural expansion, rising transit fares, Translink recently disclosed that estimates it’ll be losing $30 million in 2014.  CEO Ian Jarvis claims that Translink’s $1.3 billion operational budget is too small to satisfy the growing public’s transpirational needs. Jarvis argues that government funding, which makes up 55% of Translink revenue, must be increased to maintain employee’s government compensation guidelines. It is currently estimated that fuel taxes, which account for  27% of Translink’s revenue, will decrease in 2016. A referendum on government funding is currently in the talks. In attempts to rebalance it’s budget, Translink has announced that it seeks to once again increase bus fares in 2015, claiming “[we] don’t believe we can save our way to expansion.”

Perhaps instead of complaining of a lack of  government funding, Translink should focus on limiting it’s spending, raising fares, and addressing ‘gate-jumpers’. While it’s Compass card system is aimed at doing just that, it might be too little too late, as growing public demand it being met with Translink’s inability to supply to general populace with satisfactory public transportation.