Red Deer Transit is receiving more than $2 million through a provincial-federal matching grant program to help offset COVID-related revenue shortfalls from ridership declines.
While Edmonton will get just over $66 million and $82.3 million is earmarked for Calgary, Red Deer Transit will receive $2,095,524 from a new federal-provincial program called Alberta Relief for Shortfalls for Transit Operators (RESTOR).
“It’s definitely good news,” said George Penny, Red Deer’s transit and fleet services manager on Wednesday.
While Penny isn’t yet sure whether this money will recoup all lost transit revenues, he’s glad both levels of government have gotten together to address this financial hardship for municipal bus service and transit agencies.
The grant is supposed to cover losses from the start of the pandemic to the first quarter of 2023, so Penny said he must do some forecasting and also examine the grant’s criteria to figure out if the $2 million will cover the entire transit shortfall.
At the height of COVID lockdowns, bus ridership in Red Deer fell by 80 per cent.
Although it’s since recovered, somewhat, ridership is still half of what it used to be, said Penny, who believes some residents are still working from home and have not returned to workplaces.
The Alberta government is committing $79.5 million overall to various municipal transit services in the province. This is being matched by the federal government for almost $159 million in total to support 26 Alberta municipalities. According to a release, funding was based on 2019 ridership statistics.
Alberta Premier Jason Kenney said, “Transit systems took a financial beating during the pandemic with a significant loss in ridership as people worked from home and businesses cut back on staff or completely shut down.
“This funding will keep buses and trains moving to meet increased demand as we recover from the pandemic.”
The program will provide a “top-up” to assist municipalities with transit services that are feeling the financial pinch from low ridership over the last two years, states a provincial government release.
“Public transit is an essential service — in particular for students who are returning to on-campus learning, seniors, and …vulnerable populations who may be re-entering the workforce,” said Alberta Transportation Minister Rajan Sawhney.
Many Albertans rely on buses to get to and from work or to re-engage in social activities, he added. ”Alberta’s government is proud to step up and recognizes how important transit services are to our communities.”
Canada’s Minister of Tourism and Associate Minister of Finance Randy Boissonnault said, public transit “connects our communities and people, helping them get to where they need to be… This investment helps strengthen our public transit as demand post-pandemic picks up, while helping to make life more affordable for Albertans.”
