OC Transpo receiving $37.8 million boost from provincial gas tax program

An OC Transpo LRT leaves Bayview Station on the Confederation Line during a snowstorm in Ottawa, Thursday, Feb. 27, 2020. (Justin Tang/THE CANADIAN PRESS)

The Ontario government is pumping an additional $37.8 million into the city of Ottawa's public transit coffers amid a budget crunch for OC Transpo.

The funding is being delivered through the province's gas tax program, the province announced Thursday.

“As more people return to public transit, our government is providing municipalities with the funding they need to accommodate growing ridership, while ensuring they can continue to deliver safe and reliable transit service for people in their communities," Transportation Minister Caroline Mulroney said in a news release announcing the funds.

OC Transpo is still facing a budget crunch, largely due to sagging ridership during the COVID-19 pandemic began. The city's transit budget for this year includes a $39-million hole it's counting on another order of government to fill.

The gas tax money is already accounted for in this year’s draft transit budget.

Funding for the gas tax program is determined by the number of litres of gasoline sold in the province during the previous year. The city usually receives between $34 million and $38 million per year through the program.

This year, the province is sending nearly $380 million to 107 municipalities for local transit, including $80 million in one-time extra funding to make up for lower gas sales.

The province says the funding can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade infrastructure.

The 2023 draft transit budget includes $47 million in 'efficiencies,' $42.7 million of which comes from a reduction in contributions to the capital reserve.

It will be discussed at council on March 1.