It would cost tens of millions to extend the bulk of Fair Entry programs to roughly 90,000 more Calgarians, and local advocates believe it’s an investment worth making.

A briefing note that came to the July 23 Executive Committee meeting showing the results of an investigation into a one-time funding request for a two-year pilot project to expand the eligibility of the City of Calgary’s Fair Entry program.

Fair Entry is the City of Calgary’s low income assistance program that offers reduced rates for things like transit passes, recreation fees and even internet connections.  Right now, roughly 136,000 citizens qualify under the low-income cut off (LICO) used to help determine Fair Entry eligibility. Nearly 112,000 applied and were approved, according to the city admin report.

The briefing note outlines two scenarios, one with LICO plus 10 per cent, and another with LICO plus 25 per cent.  

City admin noted that three Fair Entry programs are not included because they are unable to accommodate an expansion due to eligibility that’s determined externally. Further, while some programs could be expanded immediately, others would need a two year ramp up time.

There is also no current funding source identified to fund the pilot project, admin said.

“The information contained in this briefing and its attachments is available for future budget conversations if a funding source becomes available,” read the report.

Ward 8 Coun. Courtney Walcott said the discussion needs to be had around how difficult it is for people to access these services in Calgary, even if they are just slightly above the current income cutoff.

Walcott said he doesn’t believe the average Calgarian will look at the potential added cost to taxpayers as being done for a select group of citizens.

“I mean, nobody wants to be in that select group,” he said.

“So, that’s going to be kind of clear, that it’s really about neighbour helping neighbour.”

The challenge with LICO

Meaghon Reid, executive director of the poverty-reduction organization Vibrant Calgary, said that one of the issue with using the LICO method is that it hasn’t really kept up with the rising cost of living in Canada – or more specifically, Calgary.

Expanding Fair Entry to tens of thousands more would be a significant step in addressing affordability for those living below or near the poverty line.

“When we look at some of the amounts that stand between people being housed and unhoused, or that stand between people being solvent or insolvent in this city, a program like Fair Entry can actually make up some of those amounts,” she told LWC.

Whether it’s a bus pass, lower rate for internet, property tax assistance or other measures, these add up for families struggling to make ends meet, Reid said. A program like this helps with the affordability crisis.

“Examining increasing the threshold for people was a really smart move by the city,” Reid said.

“I do hope that they find the funding for this as they move forward, understanding that the city has a lot of pressures right now from a cost perspective.”

Walcott said a question that will come up is why the City of Calgary has to shoulder the burden of provide income assistance. He said that it’s a provincial responsibility to help those in need.

“Fair entry, in itself, it’s income support. It is subsidies. All it means is that the city is taking on more and more of the province’s poverty reduction responsibilities,” Walcott said.

“That’s the conversation where I think the citizens would probably just look at us and say, ‘Hey, like, we know people need help, but we also need to make sure that the people who are actually responsible for this type of help are carrying that load.’”

Reid said that many of the people who apply for Fair Entry are likely already receiving some form of provincial benefit, or income subsidy. It’s not as straightforward as saying its one level of government’s responsibility over another.

“I think we have to be kind of really careful. We’re talking about a lot of municipal services here, municipal transit, municipal recreation centers, property tax, things like parking. These are all municipal responsibilities, and so I think the municipality should feel comfortable with its role in terms of administering this program,” she said.

“I think the challenging part, when we start talking about jurisdictions, which is important, is that people who need help today and don’t really care where that money’s coming from, tend to fall through their cracks.”

Reid said that people across all income levels are examining their costs, including increases to property taxes in Calgary, should something like this be added to the City of Calgary’s tax base. There’s a long-term costs savings for communities.

“It leads to many more routes out of poverty or to stay out of poverty for people, and that will always be less expensive than servicing poverty down the road every single time,” she said.

Since it was a briefing note, it only appeared on the Executive Committee agenda and wasn’t discussed publicly. The admin report said the information could be used to inform November 2024 budget discussions.