Congestion pricing: not a good idea, but raising taxes is worse
Governor Hochul announced plans to make the MTA financially stable after the loss of congestion pricing toll revenue. However, Albany needs to find the necessary funds from within its already substantial budget.
Instead of imposing new taxes or fees to fund the MTA, state leaders should find alternative ways to allocate funds without burdening the economy.
Implementing a region-specific “mobility tax” could negatively impact employment and hinder the local economy, which was a concern that Governor Hochul had previously acknowledged.
While replacing the income from the state’s reserve funds may be an option, the MTA’s plan to use the anticipated $1 billion annual funding stream as leverage for borrowing upfront remains uncertain without a guaranteed funding source.
Until a solution is reached, major MTA projects, including the extension of the Second Avenue Subway and changes to Penn Station, should be put on hold.
Governor Hochul will need to convene a special legislative session to secure permanent funding for the MTA, which will require convincing both the Assembly and state Senate to support the measure.
Lawmakers’ reluctance to allocate additional funds to the MTA led to the acceptance of former Governor Cuomo’s congestion pricing plan. However, the state’s budget has areas where cuts could be made to reallocate funds, such as reducing spending on various programs and subsidies.
Efforts to combat fare evasion and reform union contract perks could significantly improve the MTA’s financial standing and increase revenue. Enforcing farebeating laws and supporting management decisions to reduce overtime costs could improve the system’s efficiency.
While Governor Hochul’s decision to pause congestion pricing may be perceived as a delay tactic to avoid backlash before the upcoming elections, she must continue to address the MTA’s financial challenges and ensure transparency in her decision-making process.
By addressing these issues head-on, Governor Hochul can demonstrate her commitment to finding a sustainable solution for the MTA’s financial stability.
