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<\/p>\n<\/p>\n
If I have to be brutally candid\u00a0about my gut reaction to last week\u2019s transit decision<\/a>, I\u2019ll\u00a0confess that part of me\u00a0felt\u00a0the people of Scarborough are indeed\u00a0getting the system they deserve:\u00a0a symbolic and grotesquely over-priced terminus that will serve a tiny minority while delivering little else in terms of city building, intensification, social equity, emission reduction, or economic growth.<\/p>\n Of course, the people of Scarborough deserve more, and better, although\u00a0they’ll likely get even less. I predict we\u2019ll never see the money for all those LRT lines, all the political pledg-ifying notwithstanding. As with the doomed Sheppard East LRT, the shape-shifting justifications for delay will accumulate and eventually take on their own corrosive momentum \u2014 shortening the line here, deleting stops there, etc. \u2014 until the inevitable cost over-runs on the Scarborough subway project squash any remaining rapid transit ambitions for east Toronto.<\/p>\n Another generation will pass as we, alone among aspirational global cities, inch steadily backwards even as our leaders cheer and tell us that what they\u2019ve achieved is \u201cprogress.\u201d<\/p>\n The other uncomfortable reaction I have to the outcome of this debate is that the funding from the other orders of government, but particularly Queen\u2019s Park, must now be viewed not as a progressive approach to infrastructure investment, but rather as a tragic and deeply distorting liability.<\/p>\n At times like these, I find myself asking, what if we actually had to build transit on our own? What if Toronto councillors actually had to account for their\u00a0choices to the people who vote for them?<\/p>\n Because even allowing for the prevarications and aggressive ignorance of our local elected representatives, the hyper-politicized back-channel influence of the provincial government has radically derailed the way Toronto plans transit since the mid-1980s. Up until then\u00a0Queen\u2019s Park covered half of the TTC\u2019s operating shortfalls and 80% of its capital costs. It was during this period when the Bill Davis-era cost-sharing formula began to unravel.<\/p>\n Proof? Consider that Metro Council\u2019s 1985 transit expansion plan, dubbed Network 2011<\/a>, anticipates a vision very similar to what was approved last week, but which will only be realized by 2030 \u2013 almost half a century later, and then only partially! Surely if that\u2019s not prima facie<\/em> evidence of a deep structural failure in the governance of a critical task of local government, I can\u2019t think of what is.<\/p>\n Let me say that I get the math, and that it is<\/em> difficult to imagine how the City could finance large-scale rapid transit projects like The Eglinton Crosstown without help. Indeed, since Mike Harris scrapped the Davis formula and declared transit to be a purely local responsibility, it has become an unquestioned article of faith that Toronto needs (deserves!) the support of the provincial and federal governments in order to expand the system to meet the needs of a fast-paced, growing metropolis.<\/p>\n But after decades of worsening planning failures, I\u2019d argue that this particular sacred cow is in desperate need of a reconsideration. We need to understand, systemically, why provincial and federal money frequently leads to indefensible decisions with exorbitant prices and\u00a0little pay-off.<\/p>\n From where I sit, the crux of the issue has to do with what Bay Street brokers used to call \u201cOPM.\u201d “Other people\u2019s money,” or, more generally, the problem of moral hazard<\/a>.<\/p>\n The most striking detail about last week\u2019s transit debate is that our municipal officials got to spend so much time bloviating in public about the allocation of scarce tax resources provided by other orders of government and levied by other elected officials. It\u2019s a bit like traveling on the company’s\u00a0dime: you\u2019re never quite as cost-conscious as you would be if you\u2019re paying your own way.<\/p>\n In fact, if I have to distill the failure of that debate to its most essential element, it is that the men and women grappling with\u00a0these momentous decisions have the luxury of\u00a0making almost purely political choices instead of forcing themselves to engage with the evidence of what will work and what won\u2019t, or, to put it another way, what degree of expenditure provides the greatest return for the residents and businesses of those communities.<\/p>\n The truth of the matter is that members of council, led by Mayor John Tory, had very little skin in this game. They didn\u2019t need to think intently, and as a single government, about whether they were making the best use of the taxes they collect from, and on behalf of, their constituents.<\/p>\n Tellingly, Tory\u2019s executive committee discretely punted the much-touted revenue tools debate until the fall \u2013 perish the thought that council might actually be compelled to debate transit plans and the funding required to implement them in the same session.<\/p>\n But it wouldn\u2019t surprise me a bit if the staff proposals for new taxes or levies<\/a>, which are to be presented to council in October, get kicked\u00a0down the road yet again: More consultation! More policy analysis! More discussions with provincial officials!<\/em><\/p>\n Why? Not complicated. Toronto politicians can predict, with reasonable certainty, that Queen\u2019s Park will be back again, offering fiscal enticements in return for the sort of feudal fealty that re-elects MPPs but does little to build the city.<\/p>\n Moreover, if you consult your watch or Google calendar, you\u2019ll note that it\u2019s entirely plausible that council might not get around to focusing on how to pay for the balance of the Scarborough plan, or any other transit plan, until mid-2017, and you can bet your one-stop subway that there\u2019s zero chance Tory will want to come anywhere close to a tax hike debate with a re-election looming.<\/p>\n Won\u2019t happen. I don\u2019t care what he said<\/a> last month about his willingness to implement revenue tools. After all, Tory is the guy who said he\u2019d listen to the experts, and we all know how that\u2019s coming along.<\/p>\n The solution to this pathetic\u00a0situation, as I\u2019ve said before in this space, is a massive re-engineering of the governance of the region, or at least a set of reforms that serves to surface the maneuvering that\u2019s done behind closed doors. But the provincial Liberals have no appetite for such changes because the opacity of the existing system\u00a0has served their interests so well for so long.<\/p>\n If I have to be brutally honest at moments\u00a0like these, I find myself eagerly anticipating the day \u2014 coming soon \u2014 when the Tories oust\u00a0the Liberals and unilaterally edit\u00a0Toronto council out of the transit planning game once and for all. At least then, we\u2019d know who to blame.<\/p>\n photo by Knehcsg<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
![Network 2011<\/a>, anticipates a vision very similar to what was approved last week, but which will only be realized by 2030 \u2013 almost half a century later, and then only partially! Surely if that\u2019s not prima facie<\/em> evidence of a deep structural failure in the governance of a critical task of local government, I can\u2019t think of what is.<\/p>\nLet me say that I get the math, and that it is<\/em> difficult to imagine how the City could finance large-scale rapid transit projects like The Eglinton Crosstown without help. Indeed, since Mike Harris scrapped the Davis formula and declared transit to be a purely local responsibility, it has become an unquestioned article of faith that Toronto needs (deserves!) the support of the provincial and federal governments in order to expand the system to meet the needs of a fast-paced, growing metropolis.<\/p>\nBut after decades of worsening planning failures, I\u2019d argue that this particular sacred cow is in desperate need of a reconsideration. We need to understand, systemically, why provincial and federal money frequently leads to indefensible decisions with exorbitant prices and\u00a0little pay-off.<\/p>\nFrom where I sit, the crux of the issue has to do with what Bay Street brokers used to call \u201cOPM.\u201d “Other people\u2019s money,” or, more generally, the problem of moral hazard<\/a>.<\/p>\nThe most striking detail about last week\u2019s transit debate is that our municipal officials got to spend so much time bloviating in public about the allocation of scarce tax resources provided by other orders of government and levied by other elected officials. It\u2019s a bit like traveling on the company’s\u00a0dime: you\u2019re never quite as cost-conscious as you would be if you\u2019re paying your own way.<\/p>\nIn fact, if I have to distill the failure of that debate to its most essential element, it is that the men and women grappling with\u00a0these momentous decisions have the luxury of\u00a0making almost purely political choices instead of forcing themselves to engage with the evidence of what will work and what won\u2019t, or, to put it another way, what degree of expenditure provides the greatest return for the residents and businesses of those communities.<\/p>\nThe truth of the matter is that members of council, led by Mayor John Tory, had very little skin in this game. They didn\u2019t need to think intently, and as a single government, about whether they were making the best use of the taxes they collect from, and on behalf of, their constituents.<\/p>\nTellingly, Tory\u2019s executive committee discretely punted the much-touted revenue tools debate until the fall \u2013 perish the thought that council might actually be compelled to debate transit plans and the funding required to implement them in the same session.<\/p>\nBut it wouldn\u2019t surprise me a bit if the staff proposals for new taxes or levies<\/a>, which are to be presented to council in October, get kicked\u00a0down the road yet again: More consultation! More policy analysis! More discussions with provincial officials!<\/em><\/p>\nWhy? Not complicated. Toronto politicians can predict, with reasonable certainty, that Queen\u2019s Park will be back again, offering fiscal enticements in return for the sort of feudal fealty that re-elects MPPs but does little to build the city.<\/p>\nMoreover, if you consult your watch or Google calendar, you\u2019ll note that it\u2019s entirely plausible that council might not get around to focusing on how to pay for the balance of the Scarborough plan, or any other transit plan, until mid-2017, and you can bet your one-stop subway that there\u2019s zero chance Tory will want to come anywhere close to a tax hike debate with a re-election looming.<\/p>\nWon\u2019t happen. I don\u2019t care what he said<\/a> last month about his willingness to implement revenue tools. After all, Tory is the guy who said he\u2019d listen to the experts, and we all know how that\u2019s coming along.<\/p>\nThe solution to this pathetic\u00a0situation, as I\u2019ve said before in this space, is a massive re-engineering of the governance of the region, or at least a set of reforms that serves to surface the maneuvering that\u2019s done behind closed doors. But the provincial Liberals have no appetite for such changes because the opacity of the existing system\u00a0has served their interests so well for so long.<\/p>\nIf I have to be brutally honest at moments\u00a0like these, I find myself eagerly anticipating the day \u2014 coming soon \u2014 when the Tories oust\u00a0the Liberals and unilaterally edit\u00a0Toronto council out of the transit planning game once and for all. At least then, we\u2019d know who to blame.<\/p>\nphoto by Knehcsg<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"If I have to be brutally candid\u00a0about my gut reaction to last week\u2019s transit decision, I\u2019ll\u00a0confess that part of me\u00a0felt\u00a0the people of Scarborough are indeed\u00a0getting the system they deserve:\u00a0a symbolic and grotesquely over-priced terminus that will serve a tiny minority while delivering little else in terms of city building, intensification, social equity, emission reduction, orContinue reading “LORINC: Why transit has become Toronto’s moral hazard”<\/span><\/a><\/p>\n","protected":false},"author":4051,"featured_media":55486,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"_ef_editorial_meta_paragraph_assignment":"","_ef_editorial_meta_date_first-draft-date":"","_ef_editorial_meta_checkbox_needs-photo":"","_ef_editorial_meta_number_word-count":"","footnotes":""},"categories":[2,8],"tags":[],"class_list":["post-55479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","category-transit"],"acf":[],"yoast_head":"\nLORINC: Why transit has become Toronto's moral hazard - Spacing Toronto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/spacing.ca\/toronto\/2016\/07\/18\/you-make-your-bed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LORINC: Why transit has become Toronto's moral hazard - Spacing Toronto\" \/>\n<meta property=\"og:description\" content=\"If I have to be brutally candid\u00a0about my gut reaction to last week\u2019s transit decision, I\u2019ll\u00a0confess that part of me\u00a0felt\u00a0the people of Scarborough are indeed\u00a0getting the system they deserve:\u00a0a symbolic and grotesquely over-priced terminus that will serve a tiny minority while delivering little else in terms of city building, intensification, social equity, emission reduction, orContinue reading "LORINC: Why transit has become Toronto’s moral hazard"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/spacing.ca\/toronto\/2016\/07\/18\/you-make-your-bed\/\" \/>\n<meta property=\"og:site_name\" content=\"Spacing Toronto\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-18T11:00:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-07-19T17:41:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/spacing.ca\/toronto\/wp-content\/uploads\/sites\/4\/2016\/07\/subway-riders-knehcsg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2263\" \/>\n\t<meta property=\"og:image:height\" content=\"1600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"John Lorinc\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Spacing\" \/>\n<meta name=\"twitter:site\" content=\"@Spacing\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"John Lorinc\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/spacing.ca\/toronto\/2016\/07\/18\/you-make-your-bed\/\",\"url\":\"https:\/\/spacing.ca\/toronto\/2016\/07\/18\/you-make-your-bed\/\",\"name\":\"LORINC: Why transit has become Toronto's moral hazard - 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