Ottawa MP and cabinet minister responds to Sutcliffe's transit funding request

Ottawa area Liberal MP and cabinet minister Jenna Sudds has responded to Ottawa Mayor Mark Sutcliffe's request for financial help to support the city's flagging transit system.

Sudds, the Minister of Families, Children and Social Development, put out a statement on social media Friday afternoon, saying the City has a responsibility to manage the tax dollars it already receives.

"We must remember that there is only one taxpayer. The residents of Ottawa have paid their property taxes and they've paid their federal tax with the expectations that we manage their money well and spend it wisely," Sudds wrote. "We at the federal level take this responsibility seriously, especially at a time when the people of Ottawa are watching their pocketbooks, and the City of Ottawa is not exempt from this responsibility either."

In response, Ottawa's mayor told 580 CFRA Live Saturday the city has done "a great job" looking after its finances, noting that he doesn't agree with the statement.

"We're not allowed to run deficits like the feds. We've found savings and efficiencies," he said.

"Sudds is right, the feds have helped us for housing and homelessness."

Sutcliffe stresses that the federal government has not paid its "fair share in property taxes for years."

"We built a transit system for public employees and they're not going downtown," he added.

Sutcliffe held a news conference Thursday to declare a "transit crisis", saying the city needs help from other levels of government to cover a $140 million per year gap in transit funding over the next three years. Transit ridership levels have not yet returned to pre-pandemic levels and they continue to be below expectation, leading to revenue shortfalls. Remote work, particularly among federal public servants, is getting the blame for a significant chunk of lost revenues.

"When you lose your number one customer, when passenger traffic drops significantly, there is no easy solution to that," Sutcliffe said.

He warned residents that unless the federal or provincial governments come through with cash, Ottawa residents will face significant tax hikes or drastic service cuts.

"I appreciate the City is in a difficult financial situation," Sudds wrote. "Like many cities, the impacts of Covid still linger on all government's budgets. Our government is doing our part, just as we outlined in this year's budget, by sticking to our responsible fiscal targets."

She pointed to "unprecedented" levels of funding for housing as an example of the federal government's commitment to Ottawa taxpayers.

Sudds did not address federal public servants or remote work in her statement. Starting Sept. 9, federal workers will be required in offices at least three days per week. Transit staff are hopeful the mandate will boost adult transit pass sales, which are well below their 2019 levels.

There has been no additional money specifically for public transit in Ottawa in either of the recent federal or provincial budgets. The provincial government pointed to a recent $543-million deal it inked with the city earlier this year, which includes $181 million for "transportation priorities" but none of the cash is earmarked for transit operations, and is instead meant for road repairs, a new interchange on Highway 416, and the future Kanata North Transitway, a project that was first proposed in 2008.

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Sutcliffe told CTV News Ottawa on Thursday he's been in discussions with federal and provincial counterparts for months and they've been "receptive" but he sounded the alarm publicly because the 2025 municipal budget season is approaching.

"We need to make some decisions and we need help from other levels of government or we will face rising property tax increases, we will face having to hike transit fares or we're going to have to cut services, like public transit, to cover the shortfall," he said.

Budget directions are to be presented to council Sept. 18. The draft budget is scheduled to be tabled at council on Nov. 13, with adoption scheduled for Dec. 11.