Archive for Congestion Fee

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.

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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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December’s groundbreaking ceremony for the 7 Extension may have been a bit premature. (AP Photos)

Ah, remember those glorious days in December when hope sprang eternal and the City and MTA broke ground on the 7 Line Extension?

Let the nostalgia wash over you because here comes the bad news: That 7 Line Extension project — and the Hudson Yards — development is in financial jeopardy. Surprise!

In a lengthy piece on the future of Moynihan Station and the Far West Side, Daily News reporter Brian Kates drops in this five-paragraph bombshell:

In his State of the City address last month, Mayor Bloomberg said the No. 7 extension was so crucial that the city “refused to wait for the MTA” and in December “broke ground on the first new mile of subway track the city has funded since the 1950s.”

That’s the rhetoric. The reality is less optimistic.

To begin with, the city puts the cost of the expansion at a deceptively low $2.1 billion – a figure it set in 2003 and hasn’t budged from despite skyrocketing construction costs. The MTA, which considers the proposed Second Ave. subway line a greater priority, has refused to pick up the tab.

A $1.1 billion tunneling contract has been awarded, but to save an estimated $450 million, the city abandoned plans to put a station at 41st St. and 10th Ave.

That means the line will run from Times Square to 34th St. and 11th Ave. without a stop – a decision that “puts at risk several million square feet of potential commercial and residential development” in the Hudson Yards, Sen. Chuck Schumer (D-N.Y.) said. “Development follows mass transit.”

For a while, I’ve defended the MTA from a monetarily focused City. The City wants this 7 Line Extension; the City offered to pay for it; and then the City reneged on its promise. Considering the cost and the practical value of the extension, the MTA can spend its billions of dollars elsewhere for projects that would benefit more New Yorkers.

But the news gets a little worse if we dig deeper. In a weekend Subchat post about planned renovations at the Shea Stadium 7 stop, a Subchatter noted that steel prices are at all-time highs. He says that New Yorkers should “expect cost over runs and cut backs on all [construction] projects.”

So the cost of materials is skyrocketing, and the MTA and City are still using budget projections generated during our economy’s rosier days. Forget the 7 line; I want to know how this will impact the Second Ave. subway. The future cannot be bright for that project either.

To bring this all back home, congestion pricing seems more important than ever to the MTA. While we can — and have been — debating the traffic-calming aspect of the congestion plans, the MTA will draw in much-needed revenue from a congestion pricing plan, and right now, they need the revenue. They need the revenue for operations; they need the revenue for capital projects. And as the tales of the 7 Line Extension show, transit is very closely related to the development of New York’s last frontiers. The future of the city — and the subways — is hanging in the balance.

Stop the presses: I agree with John Liu.

As frequent readers of Second Ave. Sagas will know, I don’t have a very high opinion of John Liu. I think his statements about the MTA often show a misguided sense of direction from the man in charge of the City Council’s transportation committee. And while this isn’t the first time I’ve agreed with Liu — that first momentous occasion came just a few weeks ago, as commenter Julia noted — this time, he’s really hit the nail on the head with his comments relating to congestion pricing and the future of New York City’s public transit system.

A week ago, in the Daily News Liu penned a piece on the concept of a transit lockbox. He laid out a convincing argument for the congestion fee provided that all funds go to a transit lockbox so that the State or City cannot later decide to take the money and use it for other projects. Too many times in New York history have state and city bodies re-appropriated transit funds to the detriment of the MTA and the city’s public transit network. Liu’s solution would, in effect, fix part of that problem.

Liu’s plan notes too that this money would only be part of the funds given to the MTA from New York’s governing bodies. Take a look:

First and foremost, we must turn vague commitments of transit improvements into verifiable and protected investments for transit service so that New Yorkers with the worst transit service are prioritized in congestion pricing-funded improvements.

By “protected,” I mean the money must be dedicated solely to transit – no ifs, ands or buts. Legislation must mandate a “lockbox” that cannot be tampered with. The proceeds must go to capital improvements, not the operating budget, and they must be immune from poaching by future legislative bodies.

Politicians often make such promises: The lottery money will go to education, the smoking funds will go toward health care. This time, the pledge must be ironclad.

Second, the money must be additive in terms of overall transportation funding, not an excuse for future governors, mayors and legislators to cut MTA funding by an amount equal to congestion pricing proceeds.

In short, Liu absolutely hits the nail on the head with this one. For the congestion fee to work, the MTA must reap the benefits, and the money should come on top of other funds that the MTA should receive from the State and City.

Imagine a New York City with the congestion pricing. The streets are less crowded, and it’s generally more pleasant to work around town. Cars aren’t stuck in gridlock for miles, and drivers aren’t honking when the car in front of them waits half a beat to speed through a green light.

With all of the congestion fee money going to transit, the picture looks even brighter. With fewer cars on the road, the MTA and the Department of Transportation can work to give the city dedicated bus rapid transit lanes it so deserves. The MTA could beef up service and spend more money renovating stations in less time. We can even dream of capital construction projects finding their way to completion.

The way to get there — the way to achieve this transit dream — is through congestion pricing. And congestion pricing would work only with a secure lockbox. Councilman Liu is spot on. Now, as we sit one week out from a fare hike, everyone else involved has to make this new transit revenue source happen.

Categories : Congestion Fee
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In a comment on my latest on congestion pricing, a reader employs a favorite argument of the anti-congestion pricing crowd: “It’s not a coincidence that the Mayor is a billionaire making the city streets more business friendly while kicking out lower income constituents.” I’ve disputed this claim in the past, and today, I have help from another writer. Melissa Mark-Viverito, a pro-CP member of the City Council, explains how congestion pricing helps the city’s poor by providing for better public transit and healthier air. [Metro New York]

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The new congestion pricing plan. It’s certainly a good start. (Streetsblog posted this graphic on Thursday.)

Economic relief is on the horizon for the MTA’s beleaguered capital construction plans. After a week of bad news concerning rising construction costs and project delays, state commission on Mayor Bloomberg’s controversial congestion pricing plan approved a version of the plan that could send as much as $491 million a year straight to the MTA.

William Neuman, writing on The Times’ Cityroom blog, has more:

A plan to thin Manhattan’s perpetual throngs of traffic by charging fees to drivers and increasing prices for on-street parking was approved by a 13-2 vote on Thursday afternoon by a state commission appointed to review different proposals. The plan to decrease traffic in much of Manhattan, first proposed in a slightly different form by Mayor Michael R. Bloomberg last April, would charge drivers $8 to go below 60th Street from 6 a.m. to 6 p.m.

The commission, the Traffic Congestion Mitigation Commission, also recommended imposing a $1 surcharge for taxi trips starting or ending in the area and increased parking rates below 60th Street. The plan produced by the commission was generally the same as the mayor’s original plan with a few differences. The mayor wanted the pricing zone to begin at 86th street, instead of 60th, and the original plan had fees for trips within the zone as well as for cars entering the area.

The plan also calls for the money raised through fees — estimated at $491 million annually — to be dedicated to improvements in mass transit. The commission also recommended that the city make adjustments to ease the impact that expected increases in parking congestion that could occur as commuters abandon their cars at the fringes of the congestion area. Commissioners also recommended that state legislators consider making changes to tax laws to assist low-income drivers who could be disproportionately affected by congestion pricing.

For more of the details of the new plan, check out this post on Streetsblog or read through the PDF report available here.

Meanwhile, this is of course fantastic news for the MTA, and it couldn’t come at a better time. But before we break out the champagne — or the granite and porcelain — let’s remember that this plan has a long way to go before it becomes law. The plan must now head to the City Council for approval, and council members have been loathe to support something that so many of us want. Ominously, one of the two members on the panel to vote against the plan is a representatives from the city, and as Streetsblog has noted, council members seem to be willfully ignoring their constituents.

But all hope is not lost. Herman D. Farrell Jr., a Democrat from Manhattan, is not flat-out against the plan. “I expect to get more information before I can make an honest vote,” he said to Neuman.

For the plan, a few details need to fall into place. First, the money — projected at a hair under $500 million — must go to the MTA. The new report is adamant in this regard. “All net revenues generated by the congestion pricing fee and the taxi surcharge should be deposited into a dedicated MTA account similar to the agency’s dedicated real estate tax accounts. These funds should only be used for capital investments for system improvement, expansion, and state of good repair projects, excluding normal replacement,” it says.

Second, the city has to institute residential parking permit plans and higher on-street parking rates. If people who would otherwise get charged the congestion fee end up driving to the edge of the fee zone and parking on the streets, neighborhoods will be overrun with cars, and the city won’t be taking in money. Off the top of my head, I would recommend at least $4 an hour for on-street parking and a tough residential parking permit program. A cost that high would deter drivers.

I’m guardedly optimistic about this plan’s chances. Every politician in New York knows what the MTA could do win $491 million a year, and they all know the MTA needs that money. While this plan is a far cry from Ted Kheel’s fantastic plan, it’s a great start. Now, let’s just hope the City Council agrees. Maybe this bad week for the MTA has a silver lining after all.

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Theodore Kheel, the 93-year-old public advocate with a lot of money and a hate of traffic, unveiled his much-anticipated transit fare-congestion pricing report on Thursday. The report — entitled Balancing: Free Transit and Congestion Pricing in New York City — is the culmination of an 11-month, $100,000 effort funded by Kheel.

The plan itself is audacious and thorough. Theoretically, it would work perfectly, and I love it for its promise and all that it could represent for the future of the MTA. Too bad it will never happen.

First, the details. You can read the whole thing right here. It’s a 55-page PDF file, but it reads fast.

Kheel’s plan proposes a massive increase in the congestion fee. He wants to charge cars $16 and trucks $32 at all times to enter Manhattan south of 60th St. But that’s not all; the proposal also calls for medallion cab fares to increase by 25 percent and for curbside parking in the Manhattan Central Business district and outside of the zone to go up to as much as $4. This way, there is no incentive for people to drive to the edge of the congestion zone and park for below-market rates.

Now, here’s the brilliant trade-off. All of this money will go toward public transit. And not only just toward public transit but for making public transit 100 percent free. As Kheel’s analysis shows, by implementing his plan, traffic would decrease by 25 percent in the central business district and nine percent outside of it, and public transit would receive a dedicated source of funding that far exceeds what they currently draw in through the fare box and what they plan to draw in through the relatively modest fare hike. Based on the models, the subways would draw in an additional $700 million a year that could go toward improving the system.

From a productivity perspective, Kheel’s plan is rife with results. Besides the decrease in traffic, mobility in the city would go up. People who choose to venture into the congestion zone will find their trips easier; people outside of the zone will notice the decreased traffic as well. The city on the hole should save $4 billion in productivity lost to traffic and approximately 100 million vehicle hours. Fewer cars would allow the city to dedicate more space to wider sidewalks, dedicated bike lanes, and a well-implemented bus rapid transit plan — which is a key part to the Kheel plan as many former drivers would turn to BRT lines in the non-subway accessible parts of the Outer Boroughs.

Now, the obvious answers as far as we’re concerned involve potentially crowded and insecure subways. Won’t free transit mean more vagrants and vandals in the trains? Won’t it also mean a massive increase in the volume of people riding the subway? To these questions, Kheel responds worry not.

First, Kheel notes that a lot of the traffic in the city is brought on by off-peak users who don’t want to turn to a slower subway system. The congestion pricing should add an estimated 28,000 commuters to the rush hour trains and more to off-peak, underutilized (in that they aren’t packed to the gills) trains. Meanwhile, Kheel figures that a good number of people will switch to the speedier commuter rails and those folks living close to the CBD will simply bike instead of taking the train. In fact, he estimates that the subways would see an initial net loss of 5000 commuters. Considering that nearly 8 million people a day ride the trains, those numbers are insignificant.

As for the safety of it, Kheel’s plan has it more that covered. Transit workers currently tasked with fare-related jobs can turn their attention to safety, for one. Furthermore, with $700 million in extra revenue, the MTA can finally get to outfitting the cars and stations with security devices, and the MTA and NYPD can hire more officers to patrol the trains.

To make matters better, Kheel’s plan scales as well. Charge $16 but don’t implement it 24/7, and transit fares could decrease by 80 percent. Charge $12 24/7, and the fares could decrease by 75 percent. These other plans however cut into the traffic-alleviation part of it. Kheel’s researches include a very detailed chart with a few alternatives on page 13 of the report.

So with this topline summary in mind — and I really do urge you to read the report — let’s go back to the beginning. Once a skeptic, I love this plan, but it will never happen for the simple reason that it would be political suicide for any elected official to support a $16, 24/7 congestion fee plan even if it makes economic and environmental sense for the city. And forget the plans to raise curbside parking to $4 an hour.

People in New York City are, stupidly, married to their cars. They demand below-market, on-street parking. They demand access to roads at the expense of wide sidewalks and bike lanes. They demand access to roads at the expense of common-sense bus rapid transit lanes. They demand the right to drive as though it were protected by the Constitution, and this is simply a misguided and harmful attitude.

For New York City to remain a thriving, viable city long into the 21st Century, we have to leave behind 20th Century conceptions of travel and personal space. As much as I hate to preach about this, automobiles in vast urban areas are a dying breed. We can’t widen the city roads to accommodate the cars, and anyway, widening roads simply leads to more traffic. Our nation refuses to adopt clean-air technology for cars in a timely fashion so in order to combat urban smog, politicians are turning to a highly-contentious congestion fee.

Opponents, meanwhile, turn this congestion fee fight into a populist battle. We can’t let the politicians curtail our right to drive, they say, pointing out how it affects the middle and lower classes more than the upper classes. Well, guess what? The middle and lower classes don’t own cars and would be much better served with a free transit system that enjoys a $700 million annual operating surplus.

But sadly, the ideal society where a Kheel plan could pass because it would negatively impact the people who could afford and positively impact the people who need it doesn’t exist. Ted Kheel should be applauded for his vision, and his plan deserves as much attention as anything under consideration now. It’s groundbreaking; it’s visionary; it would work; and it just won’t happen.

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The MTA is banking its financial future on some form of congestion fee revenue, and MTA CEO and Executive Director Elliot “Lee” Sander began his congestion fee push with a stridently pro-congestion fee op-ed in Metro. It throws the weight of a very powerful MTA head behind a plan that is no sure thing.

In a short, concise and effective piece, Sander gets right to the heart of the matter:

Revenues generated by congestion pricing — hundreds of millions of dollars each year — would be used to provide a steady and predictable revenue stream to the MTA to make the capital investments needed to improve service throughout our system.

The new revenue is critical to the ambitious capital plan that we will present to Albany in March. The MTA hopes to move ahead with big expansion projects while investing in new technologies to improve existing service. For subway riders, that means more trains and less waiting. But congestion pricing would do even more for bus riders. It would allow us to purchase new buses to increase frequency on many routes, and to create new bus routes throughout the city.

Even better, it would speed trips for bus riders and make each bus less expensive to operate.

Furthermore, Sander notes, disarming critics, the increase in subway ridership expected due to the congestion fee is but a small percentage of the current ridership totals. With the added revenue, the MTA would be more than able to keep up with the increased demand.

Sander closes with a point that a lot of activists have been pushing lately. MTA ridership, he writes, “is projected to grow by another 20 percent by 2030 as the city is expected to grow by a million people and the region by 3 million. In order for the MTA to handle all those new riders, we must have robust funding streams in place, like the one provided by congestion pricing.”

For those of us supporting a congestion fee, Zero Hour is heading our way. With the panel set to issue a series of recommendations soon, the future of transportation and air quality in the New York area will soon come into view. But for the subways, this issue of funding should transcend congestion fee revenue. As I noted yesterday, the city and state should guarantee dedicated funding for the MTA outside of any money the MTA may take in from the congestion fee. The MTA really is that important to the economic well-being of New York State to warrant such an investment, and while the congestion fee should be implemented, the MTA’s future should not hinge on such a politically volatile proposal.

Meanwhile, it is refreshing and exciting to see Lee Sander come out in favor of a congestion fee. But to see his voice limited to the low-circulation Metro dampens some of that enthusiasm. Maybe next time, the important voices will find their way to the pages of the city’s more influential newspapers.

Categories : Congestion Fee
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It’s been a while since we’ve checked in on Mayor Bloomberg’s proposed congestion fee. As the various panels have examined the plan and proposed lesser alternatives, news has been slow. Last week, however, we heard that the plan enjoys greater public support if they money goes toward improving mass transit. Today, the news is worse.

According to two reports — one in the Post and one in the Daily News — the money from the congestion fee may not go to transit. I don’t think this guy is going to be too happy to hear this one.

Adam Lisberg from the News’ City Hall Bureau has more:

Drivers may soon be forced to pay up to $8 to drive into Manhattan – but there’s no way to ensure the money would go for mass transit as promised, the head of the City Council’s Finance Committee said Sunday.

“There is no guarantee that any of that money would be specifically earmarked,” said David Weprin, who represents a part of eastern Queens with poor subway access. “We shouldn’t be taxing the middle class if it’s not going to make a difference…”

Mayor Bloomberg and the MTA say the money should be used for bus and subway improvements that would get more drivers out of their cars and onto mass transit. But Weprin and former Councilman Walter McCaffrey fear government could instead use that money to offset other transit funding, or even to pay for projects upstate.

This statement by Weprin is not good, to say the least. First, without beating around the bush, it would be a tragedy if Albany used New York City’s congestion fee revenue to pay for upstate projects or use it to offset transit funding. I wouldn’t put past our upstate representatives who seem to have little love for this tiny geographical sliver of the state that is responsible for nearly the entire New York economy.

But more important is the money. Any money the city draws in from the congestion fee should, after paying for congestion enforcement efforts, go toward improving mass transit. If the congestion fee is implemented, a good number of drivers will eschew their cars for the cheaper confines of the subway and Bus Rapid Transit lanes that should be in place. But for the MTA’s various systems to handle the increased volume, they will need increased funding. That money should come from Albany and the congestion fee. It should not come only from the congestion fee with Albany’s thinking that they can slouch off on their financial contributions.

Right now, 60 percent of New Yorkers would support congestion pricing if the money goes to mass transit. The MTA and the mayor both expect those funds to go to mass transit, but Albany could still throw a wrench into their plans. Hopefully, our state representatives won’t do that. With Albany, however, all bets are off, and the congestion fee plan and mass transit upgrades are facing yet another hurdle in the state capital.

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Sixty percent of New Yorkers will support congestion pricing if the money goes toward mass transit, the most recent Q Poll found. Sounds good to me. [Daily News]

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