Dear Members,

I am writing to provide an update on OPTA’s pre-budget submission approach for the 2026 Ontario Budget and recent engagement with the Minister of Finance.

On Wednesday, January 14, 2026, I had the opportunity to present to Minister Bethlenfalvy as part of the Ministry of Finance budget consultations. Click the above button for a copy of my remarks.

OPTA’s presentation focused on the Canada Public Transit Fund (CPTF) baseline stream and the importance of provincial capital matching to ensure Ontario municipalities can fully leverage this new federal funding. I emphasized that CPTF matching represents an opportunity to advance state-of-good-repair and fleet renewal projects while also providing indirect operating relief by allowing agencies to redirect existing flexible Dedicated Public Transit Funding (gas tax funding) toward operating pressures.

Building on Wednesday’s ask, OPTA will be submitting a formal pre-budget submission by January 29 focused primarily on provincial matching of the CPTF baseline stream. Consistent with the approach for ICIP funding, our submission will recommend that Ontario match the federal government’s 40 percent of eligible capital costs, to make projects viable and avoid leaving federal dollars unclaimed.

While our pre-budget ask is intentionally focused and pragmatic, the submission will also clearly note the broader context facing transit systems. Operating shortfalls remain a significant and growing challenge for our members, driven in part by aging fleets and rising costs. We will continue to highlight the structural nature of these pressures, including the erosion of the real value of the Dedicated Public Transit Fund (provincial gas tax), and the need to index this funding to inflation to preserve its effectiveness over time.

Over the past month, the OPTA Board considered a number of options. This approach reflects both the political and fiscal environment and OPTA’s objective of advancing achievable solutions that address capital needs while acknowledging operating realities.

Given the significance of OPTA’s ask of the provincial government, and the simultaneous work of CUTA and CUTRIC at the federal level, OPTA has scheduled a virtual briefing by Teams for Monday January 19th for Transit GMs and Managers. I will keep all members informed as the submission is finalized and as discussions with the Province continue.

Please do not hesitate to reach out if you have questions or would like further detail.

Best regards,
Karen Cameron

CEO, Ontario Public Transit Association