Congestion Pricing

At a press conference today, Governor Cuomo touted a new plan to introduce a "rational" pricing mechanism to help the state provide critical resources to New York residents. He was talking, of course, about SUNY tuition, which will be structured to rise five percent a year for the next five years.

It's been 20 months since the state legislature passed an MTA funding package with a conspicuous missing piece. In early 2009, the transit agency was reeling from the recession, and straphangers were about to get walloped by deep service cuts and a 23 percent fare hike. Albany responded by enacting just a partial fix: a regional payroll tax and a smattering of new fees on taxis and car rentals. Tolls on the East and Harlem River bridges were supposed to be part of the deal -- getting car commuters who benefit from the congestion-busting effect of transit to contribute their fair share. But the State Senate insisted on preserving the free ride for motorists.

Today, for the first time, New Yorkers braved the morning rush using our new, diminished transit system. With more than a dozen bus lines discontinued over the weekend, dozens more running less frequently, and subway service changes forcing straphangers to cope with longer rides and more crowded platforms, no one expects an orderly transition.

So it's come to this. With transit revenues plummeting to the point where the MTA has to deal with a $400 million shortfall on top of an austerity plan that already calls for deep cuts in service, Governor Paterson yesterday proposed shifting the burden of the MTA payroll tax to fall heavily on New York City businesses. The idea is to tax city payrolls at .54 percent and suburban payrolls at .17 percent, skewing the flat .34 percent rate established last spring.

When Albany slapped a Band-Aid over the MTA budget hole last spring, no one except the architects of the plan pretended that the transit system was actually on sound financial footing. As yet another day of reckoning approaches, lawmakers continue to go to bizarre extremes to avoid admitting that their slipshod funding package has failed.

Hat tip to Ben Kabak at Second Avenue Sagas for plucking this graph from yesterday's urgent session of the MTA finance committee. It charts where the money comes from for New York City's free and discount student transit passes -- of which there are more than half a million. And it says a lot about the transit funding mess we're in today.

Is 2010 the year of bridge tolls? Or will it be 2011 or 2012? If the editorial boards and political insiders are even half right, New York State appears to be back on the brink of an epic fiscal crisis. Lieutenant Governor Richard Ravitch said today that the state faces a deficit of $9 billion to $18 billion next year. 

Yesterday word surfaced that the MTA will receive $200 million less from the recently enacted payroll tax than the state of New York originally projected. The news came less than a week after Albany legislators slashed $143 million from the MTA so the state can keep paying its bills. Add it up, and the agency has about $340 million less than it expected to have just a few days ago. To put that in perspective, the "doomsday plan" that Albany supposedly averted back in the spring contained about $25 million in annual subway service cuts and $88 million in annual cuts to New York City bus service.

If you're a livable streets optimist, you probably suspected that car-free Times Square critics like Andrea Peyser, Susan Dominus, and John Liu were out of touch. After all, most New Yorkers don't own cars, and many of those who do spend more time as pedestrians than drivers. And really, how many people were driving their own private vehicles right through the middle of Times Square, anyway?