STM's financial struggles continue as deficit balloons to nearly $78M

Montreal's transit authority says it will try to maintain its bus and Metro service levels in 2023, but to do so, it will need help as its deficit is projected to swell to $77.7 million.

In comparision, when the STM presented its budget last year, the deficit was $43 million.

"The STM is facing major financial challenges for 2023 that are related to the economic context and issues related to public transit funding," said Marie-Claude Léonard, the transit authority's CEO, during a news conference on Monday.

The Société de Transport de Montréal (STM) unveiled a budget of $1.7 billion. In 2022, it was $1.57 billion.

Inflation, staff salary increases and a reduction in the use of public transit on the island of Montreal have exacerbated the STM's financial struggles in recent years, Léonard said on Monday. Ridership in 2023 will be 70 to 80 per cent of usual pre-pandemic levels, the STM projects. 

To make up for next year's deficit, the STM is hoping to get some assistance from the ARTM, the transit planning agency for the greater Montreal area. The ARTM gets its mandate from the Quebec government.

Starting in January, users may notice that some buses — like the 141 bus route that travels between the Saint-Michel and Honoré-Beaugrand Metro stations — come every eight minutes instead of six, Léonard said. 

Other bus routes, like the 197 line that mainly travels along Rosemont Boulevard, will get an increase in service to meet a growing need, she said.

In order for those service levels to be maintained or improved beyond the first quarter of 2023, the STM will need more money.

"But globally, when I look at the service that we offered to customers in November, the offer will be similar in January 2023," Léonard said.

The STM says service levels for adapted transit will also be maintained. Access to adapted transit service was temporarily scaled back earlier this year. 

To reduce costs in 2022, the public company delayed the maintenance of its Azur Metro cars. That work can no longer be pushed back and must be done next year, contributing to total costs in 2023.

Despite the STM's struggles, Mayor Valérie Plante announced last week that bus and Metro rides will be free for seniors as of next July.

The city of Montreal will unveil its 2023 budget on Tuesday.

Opposition slams city over budget deficit

It's not clear how much money the province will give to the STM.

A spokesperson for the ARTM said discussions are already underway and will continue into next year.

"We are confident that we can find solutions with the government, municipalities and transit agencies. We are all part of the solution," said ARTM spokesperson Simon Charbonneau. 

Last year, the ARTM provided $25 million to the STM to reduce the $43 million deficit.

Éric Alan Caldwell, the chair of the STM's board directors and a Montreal city councillor, said making substantial cuts to service is not an option.

"We need money. We will find it. There's no other choice," he said.

Christine Black, the borough mayor for Montréal-Nord and the public transit critic for Ensemble Montréal, issued a statement criticizing the Plante administration, accusing it of mismanagement and not being more transparent about pending bus and Metro service cuts.

"All it is doing is waiting for Quebec's money even though negotiations are at a dead end," said Black.

On Monday, Caldwell also unveiled the transit authority's 10-year plan, which lays out $20.4 billion in spending.