TransLink releases $90M cost-cutting plan to address looming deficit

With a potential funding gap of hundreds of millions of dollars looming, TransLink has released a new $90 million cost-cutting plan.

The organizations said the changes won’t include any transit service cuts, at least for now.

TransLink sought an independent review, conducted by business management consultant company Ernst and Young, to see where it could cut costs without reducing transit services.

The findings concluded that with transit services taking up around 85 per cent of its costs, any further cuts would likely have to include transit.

“There’s just very limited opportunities to reduce costs without reducing transit services,” said TransLink CEO Kevin Quinn.

For now, the company says it will eliminated jobs, hire fewer third-party contractors and increase fare evasion enforcements, among other steps.

“We’ve taken these measures today to really protect and preserve front-line services for our riders,” said Quinn.

TransLink said when provincial relief funds run out at the end of 2025, it will face an annual funding gap of more than $600 million.

The TransLink Mayors’ Council has long been sounding the alarm on the lack of money.

“This is not a ‘nice to have,’ this is an essential service, and you all know that this region is growing by leaps and bounds and the service has not caught up with that,” said Chair Brad West, the mayor of Port Coquitlam.

“At the same time, we think that when you’re going to the provincial and federal government and asking for more funding you have to be able to demonstrate that you’ve done everything possible internally to make sure you’re spending the dollars you do have as efficiently as possible,” continued West.

TransLink noted several issues with its current funding model, including fare increases below inflation and a decline in revenue from fuel taxes.

The mayors’ council has asked TransLink to prepare a report to show what it could look like if transit service cuts have to be made down the line.