Region could lose millions in revenue if Laurier students opt out of GRT's U-Pass program

Students at Wilfrid Laurier University in Waterloo, Ont., will vote next week on whether or not they want to keep the universal transit pass through Grand River Transit.

If they vote to opt out, it means the region could lose out on millions in revenue.

Laurier's student unions, Wilfrid Laurier University Student Union (WLUSU) and graduate students' association (GSA) will hold a referendum between Jan. 24 to 26.

The U-Pass program is a service offered by Grand River Transit (GRT) that gives students a universal transit pass for the school year. Students would pay $113 per term for the service through their tuition. 

The region says its among the lowest prices in the province compared to what other programs charge, which is on average $140.

But WLUSU president Shane Symington said there have been concerns over the costs students would need to pay for the service, which is why a vote is being held. A vote was originally set for 2020, but the pandemic postponed that decision.

"Students are being asked to approve a considerably higher rate for the U-Pass, a compulsory fee that has been levied since 2005," he said in an email to CBC News.

"The Students' union encourages all students to make an informed decision when considering increases to their fee burden."

The U-Pass program was also put on hold for Laurier and the University of Waterloo during the peak pandemic, but was brought back for the 2021 academic year.

Revenue lost if students opt out

WLUSU represents 92 per cent of U-Pass users at Laurier. 

According to a report that went before a planning and works committee Jan. 10, Laurier's U-Pass programs would generate $1.8 million of transit revenue for the Fall 2023 Term, representing annual revenue of $3.8 million for 2024. 

If students chose to continue with the U-Pass, the program would be in place until August 2025. If students vote to remove the service, the program will end before the fall, the report said.

The region estimates with students paying out of pocket, transit habits may change and revenues for the fall 2023 term would fall to $700,000 and to $1.6 million in 2024.

"There is therefore an estimated revenue risk of approximately $1 million for 2023 and over $2 million for 2024," the report said.

"Part of this revenue risk would likely be compensated through service adjustments to balance the lower ridership that is expected without Laurier's U-Pass program, while continuing to support student travel demand from UW's U-Pass program and the Conestoga College Term Pass program."

Conestoga could become part of U-Pass program

Matthieu Goetzke, commissioner of transportation services with the region told regional councillors last week they're working closely with Conestoga College to potentially incorporate the school in the U-Pass program in 2024.

"We are working with them on preparing the shape of the proposal and getting that ready," he said.

"I think today, the target date is still fall of 2024, but they're still assessing what the need is, but the objective is to integrate them in the U-Pass program."

Sana Banu, president of Conestoga Student Inc., said there was strong support from students for the U-Pass program.

She said results of a year-end survey in 2021 showed 55 per cent of students said public transportation is their main mode of transportation, and 75 per cent of students expressed positive support for a U-Pass. 

Now that the province's Student Initiative Choice —that would have allowed students to opt out of ancillary fees like the U-Pass— was struck down, Banu said they first have to hold a referendum before they can roll out the program.

"If we need to incorporate new fees, we need to go to students and ask them to vote if they want to have this U-Pass implemented," she told CBC News.

"We now have to get some clarification from the ministry to see how we can implement it."