Photo: BC Transit

The Kelowna Regional Transit system does not expect to feel the effects of last week's provincial budget.

At least, not yet.

The budget, tabled by Finance Minister Carole James, provides for a two per cent reduction to the provincial transit system budget.

There will also be a budget freeze in years two and three, which sounded alarm bells from BC Transit CEO Erinn Pinkerton.

Jerry Dombowsky, City of Kelowna transit demand supervisor says the budget cut won't affect the regional service immediately, but adds any budget cut or constraint is concerning.

Dombowsky says the regional transit system is only planning a modest expansion in service of less than one per cent in 2020-2021.

It's years two and three, when more significant expansions are planned, that are concerning.

"We have a bit of a constraint with our existing transit yard. We're working on a solution, and assuming that solution is available to us, we will have a more ambitious transit expansion next year, 2021-2022, Said Dombowsky.

"At that point, we may have to dip into our reserves, and it's possible there could be an impact in 2022-2023."

Since 2015, Dombowsky says the province has been allowing regional transit systems across the province to put year-over-year surpluses into a reserve account.

That account province-wide sits at $26.3 million.

While Dombowsky doesn't have the exact figure in the Kelowna reserve, he says it is significant enough.

However, he doesn't believe the reserve funds should be earmarked just to pay for planned expansions.

"It's for emergency things like a spike in fuel costs or a drop in ridership and revenue," he said.

"It's a rainy day fund, and this doesn't seem to be a rainy day cause."