Its good the government is doing something in the right direction. There is one inconvenient question though. How many thousand dollars should anybody who doesn't have any car, bikes to work and occasionally uses public transit receive?
nothing! Well maybe $10 worth of paint to mark some bike lanes and the odd inconvenient bus stop.
Remember Dan, If you don't drive you are not paying gas taxes , licence fees and parking costs and the odd fine so you are not helping the economy. 
Actually there may be more truth to this than you think.
Its true cycling ios better for the environment. However as you said cyclisits pay no liscence fees, they pay no gas taxes. They effectivley get to use the road infrastructure for FREE. The infrastructure they use is paid for and maintained via reveue from automobiles.
Public transportation in many cases does not represent the true cost of said service. Its subsidized by government/taxes. People who take the bus are already getting a "rebate" in the form of a fare that is less than what the ture cost might be.
For example making bus service in Halfiax will not particularly icrease useage. Increasing service will make a difference. Here the second largest destination Burnside industrial park has totally inadequate bus service. It doesn't even run at the hours when many riders need it. lots of call centers with late night hours. Low income riders . Yet the buses don't run there. Lowering the prices won't help. People will drive berause it takes them 4 times as long to take the bus or there is no bus that meets the schedule. Making the price less makes no difference.