Archive for Congestion Fee

In a story bound to pick up speed over the weekend, the tireless Elizabeth Benjamin at the Daily News’ The Daily Politics blog reports that MTA board members are threatening more fare hikes if congestion pricing isn’t approved. That leaves with one question: Is the MTA board engaging in some political chicanery or are this fair city’s subway riders up a fare hike creek without a paddle if congestion pricing fails this weekend?

Benjamin reports that she got a call from an anonymous MTA board member who levied this fare hike threat:

In a move that seemed designed to scare the bejeezus out of state lawmakers, an MTA source called this morning to insist the authority is actively “looking at different scenarios” to fund its five-year capital plan if the Legislature doesn’t pass congestion pricing – including the possibility of yet another fare hike.

“If they don’t get a new revenue source out of Albany, either congestion pricing or some other new tax, they’re going to have to get the money somehow,” the source said. “Their current finances are so soft they can’t do the $30 million (worth of service improvements) they promised. How are they going to pay the debt service on the next capital plan?”

When pressed, MTA spokesman Jeremy Soffin danced around the issue a little bit. “A number of things have been looked at, but no specific fare numbers are being run,” Soffin said to the Daily News reporter. “But, if the capital plan isn’t funded, we have to find ways to fund it, and we have limited choices.”

For the MTA, the fiscal news really is this bad. Just a 10 days after the MTA had to indefinitely postpone service upgrades that should have come our way after the fare hike, Benjamin notes that the MTA’s finances are looking even shakier:

MTA revenues from four taxes on real estate transactions dropped in March far below what the authority’s budget projected. The budget anticipated a $47 million drop but those revenues fell $79 million in March.

If that trend continues the MTA is in deeper financial trouble. It already is projecting a $200 million deficit for next year and much larger deficits in subsequent years, largely because of rising payments for debt racked up because of inadequate funding during the Pataki years.

The unspoken bad news here is that even with congestion pricing, the MTA will still be facing a budget deficit. For the umpteenth year in a row, Albany is going to scale back its fiscal contributions from the originally-promised levels, and the MTA cannot just print money itself. Another fare hike next year seems inevitable.

Yet again, we’ll be faced with the trade-off: Do we want a subway system that’s cheap — some might say too cheap — and bad service or are we willing to shoulder yet another fare hike to maintain or improve service levels? No matter the answer to that question, the debate is a long way off. Meanwhile, if Albany isn’t going to kick back state funds for the MTA, the least they could this weekend is acknowledge the city’s home rule message and pass congestion pricing. The money will be a dedicated revenue stream for the MTA, and the authority should could use it.

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Gene Russianoff of the Straphangers Campaign is something of a subway guru. He is a tireless advocate for riders’ rights and for all things public transit in New York City. When he talks, rail watchers listen.

Yesterday, Russianoff talked and in a big way. In a piece in The Post, not normally a big congestion pricing supporter, Russianoff outlined his support for and belief in a transit lockbox for the revenues from congestion pricing. Usually historical arguments based on the way the MTA has been funded over the last 40 years, Russianoff lays out a compelling case for the security of a lockbox. While many MTA watchers on this blog and elsewhere have been skeptical of the promise that all congestion pricing revenue would go toward transit improvements, Russianoff’s pieces assuages many of those fears.

He writes:

Some still doubt the lockbox will work. But dedicated funds for transit actually have a very good track record of getting the cash where it’s supposed to go.

The MTA has been funded by several such revenue streams (via portions of the corporate-franchise, mortgage-recording, real-property and sales taxes, among others) since the early ’80s, providing tens of billions to run our subways, buses and commuter rail. And the dedicated funds have never been raided to balance the state’s budget or fund projects unrelated to transit.

Indeed, one such fund goes back to the MTA’s birth: Back in 1968, the agency was granted the surplus from the tolls on MTA bridges and tunnels. The funds support both daily operations and the rebuilding of the system.

This year, it’s set to get $334 million from facilities such as the Brooklyn-Battery and Queens-Midtown tunnels and the Triborough Bridge. In 40 years, the bridge and tunnel surpluses have never been taken and used for non-transit purposes.

Russianoff ends by urging the public and its elected representatives to avoid voting against congestion pricing because of sketpicism over the funds. If the money is earmarked for the MTA, then, as history shows, it will be delivered to the MTA no ifs, ands or buts about it.

Indirectly, then, Russianoff’s piece brings us to another conclusion: The MTA has suffered financially not because they have been denied funds from their dedicated revenue sources but because state and city institutions have not come through with fiscal contributions to the transit authority. For decades, public officials have promised the MTA money to cover budget gaps when dedicated revenue streams can’t cover everything, and for decades, public officials have reneged on those promises. For the most recent example of this, we need look no further than Monday when news came that Albany may not deliver all that was once promised.

As Russianoff urges, New Yorkers need to hold their public officials responsible for this oversight. Too long have our elected representatives siphoned money away from the MTA. If we care about transit, we should urge these officials to fund the MTA. Enough with the wasteful projects and pork spending. Give this city — the economic engine of New York State — the funds it needs to run a state-of-the-art 21st century transit network. It all starts with congestion pricing, but it ends with money that far exceeds those contributions.

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In a close vote late Monday evening, the City Council sent a strong home-rule message to Albany when it passed Mayor Bloomberg’s congestion pricing proposal. The Council vote now sends the plan up to the State Legislature for ultimate approval.

Diane Cardwell of The Times has more on the vote and what it means for the revolutionary plan’s future:

Approving the proposal, Ms. Quinn said, would send a message to the Legislature that the “people who were elected to represent the New Yorkers who live in our five boroughs are sick and tired of our streets being clogged with traffic, we’re sick and tired of the children who live in our city literally having to fight to be able to breathe, and that we see congestion pricing as a solution to this problem.”

But the ultimate fate of the proposal now resides in Albany, where the intentions of lawmakers whose approval is needed remained unclear. Gov. David A. Paterson and the Senate majority leader, Joseph L. Bruno, have expressed their support. But Assembly Speaker Sheldon Silver, who has derailed Mr. Bloomberg’s ambitions in the past, remained noncommittal, telling members of the Democratic conference on Sunday night that he would not take the issue up until the state budget was completed.

Meanwhile, the form of congestion pricing passed by the City Council looks a bit different than Mayor Bloomberg’s original plan. Gone are the boundaries at 86th St. Instead, congestion pricing will go into effect south of 60th St. At the last minute, other key changes which probably saved the plan were put in place by the Senate majority. Elizabeth Benjamin summarized those changes. They address many of the concerns the congestion pricing critics had:

- Requires the Port Authority of NY/NJ to contribute $1 billion to the 5-year MTA capital plan. If the authority fails to make this payment, then the amount of the toll offset for commuters who use the Hudson River crossings will be reduced. (This is to address complaints that NJ communters weren’t paying their fair share in the original plan).

- This eligible to receive an earned income tax credit would have congestion pricing fees reimbursed over the amount of the monthly Metrocard. (This is to address complaints about the lack of an exemption for poor people).

- Increases the time to pay fines for non-EZPass drivers to 96 hours (four days) prior to incurring a penalty and provides three separate notices to be sent to a driver prior to the issuance of a violation. (To create a fairer fine structure).

- Strengthens language regarding prevailing wage to include all public works performed by the MTA with congestion pricing funds. (To assuage concerns of organized labor union and their allies).

- Expands the handicapped license plate exemption to include those with a NYC tag and an EZPass.

For the MTA, that golden carrot of funds is one step closer, and it couldn’t have come at a better time. After facing lower-than-expected revenues and the threat of less money from Albany, the MTA needed a win, and they have received at least a provisional win. The money from the congestion pricing plan will go to the MTA, and the MTA will be able to fund more of its capital campaign. That’s a win.

Pricing opponents are sure to be out in full force tomorrow, but this is a good plan for New York. It’s a good plan for the future of our region and for the future of our transportation network. It’s one step closer to reality, and that is good news indeed.

Categories : Congestion Fee
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Finally, some good news for New York’s battered and beleaguered transportation network: The City Council has approved congestion pricing. The plan now heads to the state legislature which should heed New York’s home-rule decision. I’ll have more on this and its potential impact on transit later on tonight.

Categories : Asides, Congestion Fee
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Another financial milestone for the MTA is fast approaching. At 3:30 p.m. this afteroon, the City Council will hold a vote on the revised congestion pricing plan. While, as City Room’s Sewell Chan notes, the State Legislature will ultimately approve or vote down the plan, the Council has to approve the plan before the Legislature can vote. This morning, The Times looked people who drive when they don’t have to. Those are the folks who should be paying the fee. More as this story develops. After a bad financial week, the MTA could really use a congestion pricing win today. [City Room]

Categories : Asides, Congestion Fee
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Big News: The already-embattled new governor David Paterson has announced his support of congestion pricing. There’s hope for transit in New York City yet.

“Congestion Pricing addresses two urgent concerns of the residents of New York City and its suburbs: the need to reduce congestion on our streets and roads, and thereby reduce pollution and global warming; and the need to raise significant revenue for mass transit improvements,” Governor Paterson said. “We expect that revenue from the Congestion Pricing plan will support more than $4.5 billion in needed capital improvements for mass transit and meaningfully reduce traffic into the Central Business District of Manhattan.”

Mayor Bloomberg was pleased to hear this news as well. “Today, Governor Paterson has demonstrated true leadership by submitting a congestion pricing bill to the Legislature that will meet all of the objectives we’ve set – cutting traffic and reducing pollution to improve our economy and public health, and raising revenue to fund much needed projects included in the MTA Capital Plan,” he said. “We will work with the Governor and our partners in the State Legislature and the City Council to address outstanding issues – including reducing the impact on lower income drivers, and concerns about commuters who use Port Authority crossings contributing to the MTA Capital plan.”

Now we just wait to see how this game plays out.

On to the service changes:


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, there are no 1 trains between 14th Street and South Ferry. Customers may take the 2 or 3 between 34th Street and Chambers Street. Free shuttle buses are available between Chambers Street and South Ferry. These changes are necessary due to underpinning work at Cortlandt Street.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, 2 and 3 trains run local between 96th Street and Chambers Street due to underpinning work at Cortlandt Street.


From 4 a.m. Saturday, March 22 to 10 p.m. Sunday, March 23, Bronx-bound 4 trains run express from 149th Street-Grand Concourse to Burnside Avenue due to track panel work north of 167th Street station.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, no 5 trains between Bowling Green and Brooklyn Bridge due to signal work at Bowling Green. Customers should take the 4 instead.


From 4 a.m. Saturday, March 22 to 10 p.m. Sunday, March 23, Flushing-bound 7 trains run express from Queensboro Plaza to Willets Point due to track panel work south of 74th Street.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, there is no C train service; customers should take the A instead. A trains run local between 168th Street and Euclid Avenue with these exceptions: Brooklyn-bound A trains run on the F line from West 4th Street to Jay Street (due to Chambers Street signal modernization) and Manhattan-bound A trains run express from Utica Avenue to Hoyt-Schermerhorn due to track work.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, uptown F trains skip 14th Street and 23rd Street due to track work between West 4th and 34th Streets.


From 8:30 p.m. Friday, March 21 to 5 a.m. Monday, March 24, there are no G trains between Forest Hills-71st Avenue and Court Square due to track cable work between Roosevelt Avenue and Forest Hills-71st Avenue.

From 8 a.m. to 5 p.m. Saturday, March 22 and Sunday, March 23, Manhattan-bound J trains skip Flushing Avenue, Lorimer and Hewes Sts. due to rail replacement between Myrtle and Marcy Avenues.


From 8 a.m. to 8 p.m. Saturday, March 22, free shuttle buses replace L trains between Broadway Junction and Myrtle-Wyckoff Avs. due to track work at Broadway Junction, Bushwick Avenue-Aberdeen Street and Wilson Avenue.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, Coney Island-bound N trains run on the D line from 36th Street (Brooklyn) to Coney Island-Stillwell Avenue due to track panel installation between 8th Avenue and 86th Street.

From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, Q trains run local between 57th Street and Canal Street in both directions due to a concrete pour south of 42nd Street-Times Square.


From 12:01 a.m. Saturday, March 22 to 5 a.m. Monday, March 24, Queens-bound R trains run express from Queens Plaza to Roosevelt Avenue, then local to 179th Street due to track cable work between 36th Street and Roosevelt Avenue.

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Despite my previous predictions that Gov. Spitzer’s resignation may signal the end of congestion pricing, a growing crowd of voices is now suggesting that maybe his resignation will save the pricing plan. Alec Applebaum at New York Magazine’s Daily Intel blog speculated that incoming Gov. Patterson could shepherd the plan through the legislature. The Times predicts an era of reconciliation now that the self-proclaimed steamroller is out. Could this just be the sex scandal that saved congestion pricing?

Categories : Asides, Congestion Fee
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Yesterday, I speculated that Gov. Spitzer’s scandalous problems may signal the end of our congestion pricing hopes. Today, with Spitzer out, pricing foe Assemblyman Richard Brodsky gleefully predicts the downfall of Mayor Bloomberg’s radical and necessary plan. “Whatever political efforts he was intending to make are certainly not going to be there over the next days and weeks. That certainly means we’re in a fair fight, which we’ll win,” he said. Maybe Gov. Patterson can turn this into a win, but if not, the city’s environmental and transportation future will be the big losers here.

Categories : Asides, Congestion Fee
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When the Eliot Spitzer scandal hit on Monday afternoon, my thoughts turned to congestion pricing. Slowly gaining momentum with New Yorkers but losing the support of key politicians, the congestion pricing plan was going to require a monumental negotiation in Albany. With this scandal, I fear it is all but dead, and with it, we lose a chance to significantly improve both the environment and mass transit in New York City.

Recently, it seemed, the tide had been turning in favor of the congestion pricing plan. With Elliot Sander’s State of the MTA speech last week, improved mass transit partially funded by congestion pricing revenues took center stage. His plan showed a New York with better transit options and fewer cars.

Then, last week, The Times wrote a stridently pro-congestion pricing editorial:

New York riders pay a considerably higher share of the cost of mass transit than riders in other cities. Fares for buses, subways and commuter rails increased again this week to help pay the M.T.A.’s operating costs. It is time for New York drivers to help carry the burden. Congestion pricing fees can produce significant and recurring new money for mass transit’s capital expenses.

Congestion pricing, of course, has many other virtues. New Yorkers would enjoy the health and economic benefits of less gridlock and tailpipe emissions — and faster commutes. Getting money to help fix mass transit is yet another reason why the City Council and state lawmakers should approve congestion pricing before the end of the month — when a deadline to receive more than $350 million in federal funds expires.

I’ve said it before myself, and I continue to agree with The Times. The city needs congestion pricing badly.

Meanwhile, an amNew York story published today notes that nearly two-thirds of bus commuters approve of the congestion pricing plan. “Bus riders are really the unsung winners of congestion pricing. They win with faster, more reliable buses,” Transportation Alternative’s Wiley Norvell said.

The opposition however is gaining strength too. As Gotham Gazette notes, the City Council is now leaning 20-12 against congestion pricing. And here I thought elected officials were supposed to represent the desires of their constituents.

All of these political machinations bring us back to Gov. Spitzer, the man who could have brokered a deal for the congestion pricing plan. As Streetsblog commenter momos aptly noted, Albany will now be consumed with this scandal and the ensuing fallout. In fact, we could find ourselves with a new governor this week.

“Both the budget and congestion pricing had to be negotiated by the end of the month,” momos wrote. “The negotiating environment was bad enough. Now it’s downright destroyed. Spitzer is weakened if not replaced entirely, while the uproar in Albany will give the Assembly cover to do as it will. If there were several months for things to settle it would be difficult enough; with critical deadlines in 3 weeks, forget it. This is so tragic. Congestion pricing dies not in a debate over its merits but in the ashes of a Governorship imploding from a sex scandal.”

And that about sums it up.

As congestion pricing goes, however, all is not lost. The MTA can still pressure the legislature to make good on its promises of funding that emerged during the fare hike hearings. Now more than ever in fact, the state and city should be willing to pony up other funds to ensure the financial health of the MTA. While congestion pricing is seemingly on its last legs, the MTA need not be at all.

Categories : Congestion Fee
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By donating $500,000 to New York State Republicans, Mayor Bloomberg may have just cost himself and the City the congestion price support of State Democrats. “You don’t want to stick your thumb in the eye of people that you want to help you,” Assemblyman Carl E. Heastie, a Bronx Democrat, said to The Times. While an idealist would hope that the legislature does what is best for the City and passes the congestion pricing plan, a realist knows that politics is more important in New York State than policy. So for that, I give a loud Bronx cheer to Mayor Mike. Why not now just give $450 million of your own money to the MTA? You can afford it, and now the agency will need it. [The New York Times]

Categories : Asides, Congestion Fee
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