OC Transpo projects a $46.6M deficit in 2025 as ridership lags, revenues fall, and federal rescue hopes fade, sparking calls for realistic budgeting.
OC Transpo Faces $47M Deficit Amid Budget Shortfalls
Deficit Widening in 2025
Ottawa’s transit system, OC Transpo, is forecasting a $46.6-million deficit this fiscal year, according to the city’s second-quarter financial results. The shortfall, built on lower-than-expected ridership and missing provincial and federal support, has already reached $6.6 million in the year’s first half.
Falling Ridership and Revenue
The transit system recorded about 30 million trips in the first five months of 2025, just 72 per cent of pre-pandemic levels. The city’s budget assumed an 80 per cent recovery, a target that critics now say was overly optimistic. Fare revenues alone came in $3.8 million below budget, while additional costs from Para Transpo and sick leave changes added further strain.
Unrealistic Assumptions Criticized
River Ward Councillor Riley Brockington, who questioned budget assumptions last year, said the report confirms his concerns. “We just really are not receiving estimates from our senior transit staff that are based in reality,” he said. Ottawa Transit Riders’ Kari Glynes Elliott echoed the criticism, comparing the city’s planning to “making a household budget expecting to win the lottery.”
Federal and Provincial Support Absent
When council passed the 2025 budget, it relied on a $36-million “placeholder” in anticipation of higher-level government support. That funding has yet to arrive, creating a significant revenue gap. Combined with fare shortfalls, the loss totals $51.8 million, only partially offset by $5.2 million in savings from project delays, such as the postponed O-Train extension to Orléans.
Councillors Brace for Tough Decisions
In April, council approved using $36 million from reserves to cover the missing support. But councillors warn this is only a temporary fix. Beacon Hill-Cyrville Councillor Tim Tierney said the city faces “tough decisions” heading into the 2026 budget cycle. Mayor Mark Sutcliffe has floated options such as operational efficiencies and fare increases as high as 7.5 per cent.
Concerns Over Transit Future
Elliott argued that fare hikes could deepen what she called a “transit death spiral,” making the system less attractive and further eroding ridership. Brockington, however, expressed cautious optimism. “I think this is the year that we’ve actually hit rock bottom,” he said, urging council to focus on reliability and service improvements to restore public trust in Ottawa’s transit system.
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