The Ontario government is doubling the amount of money for transit funding by boosting gas tax rebates over the next five years.
Currently, the City of Ottawa receives just over $34 million transit funding through the gas rebate. That funding will climb to $66 million in 2021.
"We are going to be sharing more of that money with our cities like Ottawa so they can provide quality public transit," said Ottawa MPP and Ontario Attorney General Yasir Naqvi.
Naqvi said municipalities currently receive 2 cents per litre of the 14.3 cent provincial gas tax. That percentage will double to 4 per cent by 2021. The provincial tax on gas will not change as part of this funding announcement.
Ontario Infrastructure Minister Bob Chiarelli would not say whether this was part of an early election push, but said the funding is a way to help improve transit acorss Ontario, where demand is high.
"Infrastructure is a main part of our government policy. It's one of our anchors. Infrastructure means quality of life," he said.
Ottawa Mayor Jim Watson said the steady stream of dependable funding will ultimately save taxpayers money and ensure light rail is completed on time and on budget.
"This allows us to save on principle and interest cost and allows us, quite frankly, to make sure there is solid financing in place for phase two as we get shovels in the ground in late 2018," Watson told a crowd of reporters and staff at Hurdman station Friday.
The decision to double the gas rebate also kills the idea of road tolls in the City of Toronto.
Every municipality in Ontario which operates a transit system will benefit from the increase in the gas tax rebate. The additional funding must be put towards transit projects, which in Ottawa will likely mean additional funding for light rail.
