There are warnings about immediate, widespread, and long-lasting impacts on the local economy, including more traffic congestion, in a new report going to TransLink’s Mayors’ Council Thursday morning.
The analysis predicts what could happen if the transit authority is forced to make drastic cuts to service.
In July, TransLink’s CEO indicated service could be slashed up to 50 per cent in some cases as the transit provider faces a $600 million annual funding shortfall, starting in 2026.
“The economic impact analysis shows a significant reduction in transit services within Metro Vancouver would have immediate and lasting negative consequences for households’ affordability and the region’s competitive advantage,” reads a summary of the new report from TransLink staff.
It predicts $1,000 in annual additional costs for a typical household, and $1 billion annually for the regional economy, for everything from the cost of finding alternative transportation to increased ICBC premiums, to the increased cost of goods due to freight and truck congestion.
The staff report warns traffic congestion could increase by 20 per cent, equivalent to an additional 200+ hours stuck in traffic for the average household annually.
“Metro Vancouver’s reputation as a region with a high quality of life would be compromised as fewer individuals are able to access employment and overall connectivity declines,” the report stated.
“Rising unemployment, wage declines, and reductions in GDP are all likely consequences of transit services being reduced.”
It also foresees an erosion of the region’s competitive advantage in the global talent market.
“Metro Vancouver would face challenges attracting and retaining businesses and skilled labour within the region. This would likely compromise Metro Vancouver’s current and future growth trajectories, limiting economic prosperity and driving greater inequity.”
This report comes as TransLink has been pushing for more operational funding from senior levels of government to help it bridge its looming funding gap.
The TransLink Mayors’ Council is set to meet at 9 a.m.