TransLink’s “daunting” $4.7 billion deficit is bad news for Surrey’s economy and workforce, the Surrey Board of Trade says, especially considering the area is already “severely under-served” by public transit.
The deficit was disclosed Oct. 26 during the Lower Mainland’s Mayors’ Council meeting. Inflation, service expansion, and debt servicing costs are what’s driving the deficit, Anita Huberman, CEO of the board of trade, noted.
“Inflation, which is responsible for an $839 million increase in the funding gap, primarily results from labour rate increases due to negotiated settlements. Service expansion, totaling $408 million, stems from the implementation of major projects. The cost of borrowing has also risen due to increasing interest rates since March 2022, leading to a $459 million surge in debt servicing costs.”
READ ALSO: TransLink projecting $4.7B funding gap between 2026 to 2033
Huberman noted the deficit reflects an “expected difference between planned expenses and anticipated revenues unless corrective actions are taken in the years ahead.
“These corrective actions could compromise Surrey – an area that is already severely under-served by transit needs,” she said. “A reduction in transit services can limit the accessibility of employment centres for workers, particularly those who rely on public transit. This could lead to increased commuting times, decreased productivity, and potentially discourage employees from pursuing job opportunities outside of their immediate vicinity, impacting our economic development.”
Approximately $600 million per year in new revenue, starting in 2026, will be needed if TransLink is to bridge the gap, Huberman estimates.