STM unveils 2023 budget with $77M deficit

The STM is forecasting a deficit of nearly $78 million next year, an even bigger loss than Montreal's transportation authority forecasted in its 2022 budget.

According to the Société de transport de Montréal (STM) 2023 budget, released Monday, some routes are expected to see a drop in frequency due to the ongoing financial troubles.

"The STM is facing major financial challenges in 2023 related to the economic climate and funding issues affecting public transit. While the pandemic transformed travel needs and habits, our target is to maintain a level of service similar to 2022. However, to do so, we will have to find additional means that align with this goal," said Marie-Claude Léonard, the STM's chief executive officer, in a news release.

The $1.7 billion budget shows a shortfall of $77.8 million for 2023, larger that the $43 million deficit that was tabled with the STM's 2022 budget.

Ridership is still down compared to pre-pandemic levels, hovering around 70 per cent this year, including on routes during weekly rush hour with many employees still teleworking.

The STM said Monday that inflation, the rising cost per trip and "unavoidable operating expenses" are driving the transportation authority into the red.

The opposition at City Hall denounced the STM running deficit for a second year in a row.

"The worst part of this mismanagement is that the administration does not even have the honesty to tell Montrealers where it will cut services. All it is doing is waiting for Quebec's money while negotiations with the government are at a dead end," said Christine Black, the Official Opposition critic for public transit, in a statement.

Officials say despite the deficit, projects are still going ahead in 2023, including the installation of elevators in 24 metro stations (including Jolicoeur, McGill, D'Iberville and Place-Saint-Henri), as well as the ongoing electrification of the bus fleet.