The Montreal Public Transit Authority, STM, Unveils 2026 Budget Plans
The Société de transport de Montréal (STM) recently revealed its 2026 budget, outlining a total planned expenditure of $1.8 billion with $56.5 million in fresh cost reductions. These reductions are aimed at aligning with its financial framework while maintaining current service levels.
The budget ensures that the overall service offerings measured by kilometers will remain consistent in 2026, matching the levels of 2025 despite ongoing financial challenges.
Additionally, the STM introduced its 2026–2035 capital program, highlighting a total investment requirement of $24.1 billion over the next decade. A substantial portion, $15.2 billion, is earmarked for necessary asset maintenance.
To adhere to the requirements set by the Autorité régionale de transport métropolitain (ARTM), the STM intends to cap operating expense growth at 0.7% in 2026. Without any additional measures, the regular expense growth would have surged to 3.2%.
Marie-Claude Léonard, the CEO of the STM, emphasized the agency’s commitment to achieving $100 million in recurring expense reductions by 2026, which was set as a target in 2023. These efforts are aimed at safeguarding the current service offerings while ensuring financial prudence.
The agency plans to achieve these reductions through various optimization methods, including changes to paratransit operations, restricting hiring and overtime for support staff, and altering maintenance practices for metro cars. Furthermore, they will implement measures such as extending the use of certain metro components, purchasing cost-effective alternatives, and reducing the reliance on external consultants and service vehicles.
In response to the budget constraints, the customer contact center’s hours will be adjusted, leading to the elimination of around 300 positions in the upcoming months. The STM reassured that affected employees will be accommodated as per collective agreements and existing policies.
The focus on asset maintenance within the 2026–2035 capital program underscores the significant lack of funding in this area, particularly concerning the metro system. Aref Salem, the STM board chair, highlighted the pressing need for additional funding to address the maintenance deficit and ensure infrastructure sustainability.
The STM is advocating for support from the Quebec and federal governments to bridge the funding gap, emphasizing the necessity of stable and predictable funding for future projects. The agency is also considering the pace of transitioning to a fully electric bus fleet, with hybrid buses seen as a viable interim solution offering emission reductions and operational reliability.
In summary, the STM remains dedicated to providing efficient and sustainable public transportation services, with a strong emphasis on asset maintenance and financial stability. The agency is calling for increased governmental support to secure the future viability of Montreal’s public transit network.
Keyphrase: Montreal public transit
