onthe

It is our view that this step would be an important advance in the
rationalization of the transit service tn ‘this regton.

Local Government Participation

The Board's report proposed that the new transit authority be made up
of seven directors: three appointed by the GVRD, three appointed by
the Province and one chosen by mutual agreement between the Province

and the GVRD.

Implicit in the Province's decision to remove the transit function
from the GVRD was a policy choice that transit is a provincial rather
than a local government responsibility. In the current context,
therefore, it is appropriate that the Province appoint all the members
of the board cf a regional transit authority. The Province has
recognized the existence of local government interests in this service
by appointing cnly those who hold elected municipal office to regional
transit commissions and to the B.C. Transit Board. In the case of the
transit commissions, informal discussions have been held among mayors
of neighbouring municipalities to nominate a representative for their
area, but the formal appointments are made by the Province.

One alternative to this arrangement would be a more formal nomination
process, under which the GVRD Board could be given the responsibility

of making such nominations.

Financing

The GVRO Board and its member municipalities have always vigorously
resisted the use of the general property tax to pay the local. share of
the transit deficit. This tax already bears the burden of financing
local school and regional district services, the local share of
hospital construction and the B.C. Assessment Authority. While the
overall regressivity of the property tax has been the subject of some
debate, it remains true that this tax fs relatively inflexible in
relation to the economic circumstances of those who pay it,
particularly in the short term. Taxes based on income and consumption
can be reduced when income drops or.is removed by unemployment, but
the property tax liability remains the same. In the current economic
conditions, this is an important argument against additional use of

the property tax to pay for services.

The services currently supported by the property tax are provided by
has direct lines of

local governments to which the taxpayer
and the levels of taxation

accountability for the services rendered
needed to support them. The Province has made & policy decision tnat
the provincial level. It

accountability for trans
follows that any additional f this service should be

provided from provincial not mun