Windsor Transit is $566K in the hole — in part because of the tunnel bus

Transit Windsor is facing a revenue deficit of more than half a million dollars this financial quarter — and diminishing usage of the tunnel bus is being cited as a major reason.

The information is in an operating budget variance report that went before Windsor city council on Monday.

"Transit Windsor is projecting a deficit of $566,200 for transit-related revenues," the report states.

"One of the main factors contributing to this deficit is a reduction in ridership on the tunnel bus route compared to pre-pandemic levels."

The tunnel bus operates seven days a week on a short route between downtown Windsor and downtown Detroit, with about 20 stops split between Canada and the U.S.

The bus leaves Transit Windsor's downtown terminal on an hourly basis, travelling the Detroit-Windsor Tunnel to cross the border.

Ward 9 Coun. Kieran McKenzie, who is vice-chair of Transit Windsor's board of directors, said it's worth reviewing the service, given the budget pressures the municipality is currently dealing with.

"Not that transit necessarily needs to be a revenue-positive thing — It isn't, and we all know that," McKenzie said.

"But this particular aspect of the service, you certainly would want to get as close to revenue neutral as you can."

According to McKenzie, the reasons why the tunnel bus hasn't been more popular are complex and varied.

COVID-19 measures that began in March 2020 paused the tunnel bus service for more than two years. It wasn't until November 2022 that the service resumed, and ridership has not returned to where it was before 2020.

McKenzie said that even before the pandemic, the tunnel bus "hasn't met expectations" as a two-way tourism generator: The majority of its users have always been Windsorites visiting Detroit, not Detroiters visiting Windsor.

McKenzie said he expects the Transit Windsor board of directors and city council to have "a very serious discussion about the extent to which the municipality can continue to deliver that service, in the way that it's delivering it currently."

But Nate Hope, a founding member of the citizen advocacy group Activate Transit Windsor Essex, feels the tunnel bus should be preserved — even if it isn't profitable.

"There's no bus system in the country that makes profit. Transit is a service," Hope told CBC Windsor.

"The tunnel bus is something that's very unique to the whole country. We're the only transit service that has cross-border access. That's a huge benefit."

"People in Windsor-Essex, we have a strong connection with Detroit. People have family over there. People work over there — right downtown."

The drop in tunnel bus ridership isn't the only reason for the revenue deficit. The budget variance report points to recent changes to the Transit Windsor Service Plan that are still being carried out.

The report also notes that usage rates of regular Transit Windsor routes are moving in the opposite direction of the tunnel bus: An "influx of international students" has resulted in sharp increases in rider numbers, and that trend is expected to continue into the new year.