Congestion fee plan could lead to a $767 million MTA outlay

As the congestion fee debate and plan formulation has dragged on through the last few months, I’ve diligently noted that the congestion fee will drastically alter the state of public transportation in New York City. For better or worse, more people will flock to the subways and buses while more money should flow into the MTA’s coffers.

But there is a hidden cost behind the implementation of the congestion fee, and today, The New York Times delves right into the issue. According to an MTA report, preparing the public transportation infrastructure for the estimated increase in ridership due to the congestion fee could cost as much as $767 million and probably more. With tens of thousands of new riders on the horizon, the five-year expenditures for a rapid upgrade of an aging and crowded system will be substantial.

Robert McFaddin has more:

The total, the authority said, comprised $284 million in 2008 and 2009 for 367 new city and suburban buses, 46 new subway cars and many station renovations and service enhancements; $163 million for other subway and bus improvements from 2010 to 2012, and $320 million for two new bus terminals in Queens and Staten Island.

The agency said its estimates assumed that an additional $184 million would be provided by the United States Department of Transportation under an agreement covering some costs of the congestion pricing plan. It said $56 million would be needed for improvements even before congestion pricing went into effect in 2009, and that maintaining the expanded service would cost $104 million a year.

Eventually, the transit agency said, revenues from congestion pricing would help cover the costs. New York City has estimated that the plan, which would begin in 2009 with a three-year pilot, would raise $400 million a year and would eventually cover half the cost of the transit improvements. But the report acknowledged that none of the anticipated costs were provided for in the authority’s current financial and capital plans.

These numbers from the MTA are based on the assumption that 78,000 commuters would switch to public transportation and 72,000 of those were head to the buses or subways. For those looking out for the MTA, these numbers are troubling. The cash-strapped agency, while in need of these upgrades, simply cannot afford hundreds of millions of dollars in capital costs right now. Without a guarantee of funds from the congestion fee, the MTA should not be expected to front these costs from its own pockets.

Meanwhile, for proponents of the congestion fee, these numbers are troubling. Where will the money come from to cover these costs? Richard Brodsky, a member of the New York Assembly from Westchester and a major opponent of the plan, noted how the anti-congestion fee faction will shape this issue. “You’re bumping up against almost $1 billion in unfunded capital costs,” Mr. Brodsky said to The Times. “Both reports are saying there are tremendous uncertainties. You have to have all these mass transit improvements in place before the plan goes into effect. And you’re probably going to see the $8 fee doubled almost immediately.”

While Brodsky is being rather extreme, these numbers are troubling. How the city responds to this MTA report will go a long way toward once again determining the fate of public transportation in this city. We need a fully-funded congestion fee plan, and that’s the bottom line.