The money is collected from developers to help pay for the services in new offices, homes and factories to the tune of $1.3 billion a year.
But commissioner Gord Miller says municipalities can only use the money to cover 90 per cent of all the capital costs for new transit.
He's says they should be allowed to use all the development charges to pay for transit, just as they can for municipal services like roads.
Provincial agency Metrolinx had recommended, among other things, a 15 per cent hike in development charges to help pay for public transit in the Greater Toronto and Hamilton Area.
The governing Liberals say legislation for new levies will likely come next year, but haven't said which ones they plan to implement.