Road Looks Clear for Congestion Pricing

NEW YORK CITY—New York Assembly Speaker Carl Heastie has told reporters he has the support to go forward with congestion pricing. New York Governor Andrew M. Cuomo has been urging lawmakers to pass such a plan as part of the $175 billion state budget due on Monday, April 1. The governor and Mayor Bill de Blasio had jointly endorsed a plan to reorganize and fund the Metropolitan Transportation Authority which included congestion pricing. The system would install electronic toll boxes to charge drivers entering Manhattan south of 61st Street.

This money would be used to issue bonds totaling $15 billion for MTA capital projects through 2024, according to The New York Times.

On WNYC, the governor told radio host Brian Lehrer that he was “cautiously optimistic.” If this plan passes, it will be the first of its kind in the US. The New York Times reported that the State Senate was also backing the idea.

Lehrer noted things looked favorable as Long Island legislators were on board, with new promises that the revenue would also fund the Long Island Rail Road. The paper had quoted Senator Todd Kaminsky who represents Nassau County stating the congestion pricing plan must include a dedicated revenue stream for LIRR infrastructure.

However, Lehrer also asked about other suburban legislators who wanted carve outs for drivers who crossed the Triborough Bridge, the George Washington Bridge and the Tappan Zee Bridge. “The more tolls you exempt or divert, of course, the less you have for the transit authority, meaning the subways,” said Lehrer, then asking “So which of these can you live with and which can’t you/?”

“That is the current discussion,” Cuomo responded, explaining politicians were all trying to carve out the bridges their constituents use. “But you carve this out, carve this out, it’s a smaller pie. And we need the pie to fund the congestion and that’s what we’re going through now.”

Some politicians representing commuters oppose the congestion pricing. Assembly members David Weprin from Queens and Rodneyse Bichotte from Brooklyn have been vocal critics.

The exact amount of the congestion toll has not yet been determined. Those wanting carve-outs say a higher toll could be charged and revenue could come from other sources, including the pied-à-terre tax. That’s the proposed tax on second homes located in the city which are non-primary residences and valued at over $5 million. The money raised would also fund the MTA.

The governor told Lehrer that the pied-à-terre tax was not losing momentum. “It could be a transfer tax. It could be an annual tax. We need the tax. I think it’s justifiable. It would go to the MTA. It would be in the lock box, and I believe that inures to the benefit of those Manhattan properties because if you have a better transportation system those properties will be worth more.”

The Real Estate Board of New York president John H. Banks has voiced opposition to the tax. He says REBNY disagrees with the pied-à-terre proposal based on policy grounds and the calculations of projected revenue.