With the possibility of a U-Pass price increase for the 2012-13 school year, debates about revenue neutrality are at the forefront.
Revenue neutrality is a term usually used in reference to taxes. In this case, revenue neutrality would mean that OC Transpo wouldn’t be losing any money from the U-Pass.
As it stands, OC Transpo lost $3 million over the two-term pilot project, according to OC Transpo’s 2011 marketing plan.
A revenue neutral U-Pass, according to the plan, would cost students $175 per term.
“Revenue neutrality is what we’re negotiating with the city at the moment,” said Chantle Beeso, vice-president (student issues) of the Carleton University Students’ Association (CUSA). “Their number is above what we believe to be revenue neutral so right now we’re in talks and negotiations to determine what is revenue neutral.”
“The U-Pass fee will be set by the city for the duration of the program to ensure revenue neutrality,” according to a motion form from the City of Ottawa.
Beeso said CUSA is trying to put pressure on the city to lower what they believe to be revenue neutral.
The price for the U-Pass, currently $290 for the year, is set to increase by no more than 2.5 per cent per year, according to the motion.
“[Yearly] increases will be based on the annual transportation fare increases, which shall be reported to the [educational institutions] and the [student associations] no later than the first day of March of each year,” the motion states.
Meetings to determine a set, revenue neutral price are ongoing, Beeso added.
