SOURCE
Empire Report
By Louisa Chafee, Andrew Rein, and Kathryn Wylde
The fiscal and economic vitality of New York City and New York State are central to the mission of our organizations. In that context, we enthusiastically support Governor Hochul’s restart of congestion pricing as a critical component of funding for the maintenance and modernization of our regional mass transit system.
Contrary to the fears of some, congestion pricing promises to be an economic boon for the region, potentially reducing an estimated $20 billion that excess congestion costs annually because of more efficient and timely movement of people and goods, which will increase productivity and reduce expenditures on fuel and overtime. The benefits of tolling the central business district will extend throughout the region, since traffic to and from Manhattan’s hub is the greatest generator of excess congestion on the arterial highways of Northern New Jersey, Long Island, and all five boroughs.
In the short term, revenues from congestion pricing will largely close the $15 billion shortfall in the current capital budget of Metropolitan Transportation Authority (MTA). This is a critical first step in addressing the challenge of fully funding the MTA’s next five-year capital plan, which begins January 1, 2025. Historically, the MTA could look to federal sources for a quarter of that funding, but nothing should be taken for granted considering the forthcoming national government transition.
Other tough choices lie ahead, including the identification of ways to increase efficiency and adjust MTA priorities to reflect changing demands on the transit system, along with redoubled efforts to dramatically reduce fare evasion, which has stressed the budget and makes financing capital investment harder. The Governor’s decision to proceed with congestion pricing was difficult, but it is in the best interests of the region and will be widely acclaimed once we see the benefits in terms of greater mobility, cleaner air, and an improved transit system.
Louisa Chafee, Director, New York City Independent Budget Office
Andrew Rein, President, Citizens Budget Commission
Kathryn Wylde, President & CEO, Partnership for New York City