The commitment, an announcement of which is expected in the next few weeks, was confirmed yesterday (April 10) by several government sources.

It is seen as an important first step in a potentially wider role for Ottawa in helping the largest cities with their high-cost transit needs and also to improve air quality.

But the prospect of dollars for "green" transit -- subway cars and streetcars, but not diesel buses -- would not prevent a widely anticipated fare increase for Toronto transit users by June.

A 10-cent increase, raising the price of an adult token to $1.90, is now seen as inevitable as the TTC tries to make up the shortfall in its day-to-day operating budget.

Yesterday (April 10), the TTC ratified its side of a new agreement with Local 113 of the Amalgamated Transit Union, which will vote on Wednesday on a wage package that includes a 3-per-cent raise in each of the next three years.

The federal transit announcement is one element of what many hope will be a warming-up of relations between Ottawa and the new Ontario government of Ernie Eves, who will introduce his cabinet early next week.

Promised federal help for transit and culture initiatives has been stalled for months because of sour relations between Ottawa and outgoing Ontario Premier Mike Harris. Last month, on the eve of leaving office, Mr. Harris unilaterally announced provincial funds for several cultural institutions, even though a joint announcement with Ottawa had long been planned.

While Ottawa helps rail-based inter-city commuter services, the federal support for city-based transit is a one-time pledge that will likely come in two instalments under an existing deal between Ontario and Ottawa for public investments in a range of activities.

The first step is $62-million from Ottawa to match a provincial commitment made several months ago to the TTC. An additional $14-million in capital could be phased in next year, again to match $14-million expected shortly from Queen's Park.

"It would be wonderful," said TTC chief general manager Rick Ducharme, who is among those waiting for an announcement from Ottawa.

"It would be the first time in history. What a breakthrough."

Since last October, when Ontario got back into transit with a pledge of $3-billion over the next 10 years provincewide, Ottawa has been on the political defensive. The TTC has been running ads pointedly asking when the federal government would contribute its share to pay for big-ticket transit improvements.

In keeping with a Throne Speech pledge to help with public-transit systems across the country, federal Transport Minister David Collenette has been promoting a role for Ottawa through rail-based solutions that fall within its mandate.

However, he criticized Ontario for getting back into transit financing at a level well below that of five years ago when the province shifted the responsibility to municipalities. In effect, the new provincial subsidy for capital works out to about one-third of capital costs, not 75 per cent that was the case in the mid-1990s.

Federal contributions to transit will also be on the agenda of TTC chairman Brian Ashton, who is in Ottawa today to talk to officials about the recent federal budget proposal for an expanded program to help municipalities with high-cost initiatives.

Ashton said that Toronto is still looking for Ottawa's help with sustained, long-term financial solutions to ease gridlock in the region.

Whatever Ottawa's commitment, Toronto transit riders are still on the hook for a fare increase by June.

The TTC is scheduled to hold a special meeting this month to set new fares to go into effect June 1.