With several lawsuits pending on congestion pricing, negotiations with all parties seems to be in full swing. Everyone is trying to figure out how they can get out of paying the charge. Some of the lawsuits have legitimate concerns about the environmental impact statement, not just how it was done but, if accurate, its predicted effect on air quality in poor and minority communities.
By now most people have figured out that this whole thing has nothing to do with congestion. It is all about raising much-needed money for the MTA. As a former MTA Board Member, I will support almost any idea, no matter how crazy, that raises money for the MTA, and this one qualifies as pretty crazy.
As transportation commissioner, I advocated the tolling of the East River bridges, even testified before the Ravitch commission that we should at least toll two of the bridges — the Manhattan and Williamsburg and perhaps leave two free. (The Daily News called that congestion pricing lite.) Also, back around the turn of the century, I was the proposal leader to respond to two MTA RFP’s to calculate variable pricing on the TBTA Bridges and Tunnels to raise more money.
So, in addition to wanting the MTA to get more money, I’m not against some form of charging. I just want it to make sense. The MTA needs money to improve and expand its services. Without supporting the MTA, NYC will go backwards, so much so it will be hard to convince anyone that we are the No. 1 city in the world. Without this money, NYC might not finish in the top 20.
The enabling legislation says the plan has to raise $1 billion per year. Here’s how to do it:
- Charge Ubers and Lyfts $15,000 per year to operate in Midtown and at the airports. That will bring in between $300-500 million per year. The invasion of 100,000 of these vehicles has been accomplished without paying anything near what the yellows have had to pay. A study I made public last year showed that they represent 43% of the cars in mid-day in Midtown. They are one of the primary daytime causes of congestion.
- Raise car registrations in NYC by $100 per vehicle per year and $50 in the MTA counties outside NYC. That will raise between $200-300 million. The current plan charges vehicles for where you drive, not that you drive. Drive from Bay Ridge to Little Neck and you will not pay a toll while using miles of NYC infrastructure.
- Reduce the congestion charge and the time limits. Set a maximum charge of , say, $6.95 (the TBTA toll on its bridges) during weekday working hours, and $3 at other times. Also, if reducing rush hour congestion is a concern, change the 5 a.m. to 9 p.m. daytime charge times to 7 a.m. to 7 p.m. That would likely spread out the rush hour volume while the 5 to 9 range would not. Those changes with current volumes should bring in $100-200 million.
- Increase gasoline taxes 10 cents a gallon throughout the MTA region, raising $100-200 million.
- Institute a residential parking permit program in the Community Boards on the edge of the Zone by charging $10 per month for the exclusive right to park on the streets in their own CB, and charging non-residents $20 per month or $10 per day. That will raise $20 to 50 million per year.
In addition, here is what they should also do:
- Exempt yellow cabs (they have already paid up to $1 million to operate in Midtown) and green cabs who mostly serve the outer-boroughs.
- Provide a tax credit for Staten Islanders who already have to pay a toll just to get off their island.
- Exempt all vehicles designated to transport people with disabilities to encourage more options for those who need vehicles most.
- Besides the tax credit for incomes below $60,000, include a tax credit of half the toll for those whose incomes are between $60-100,000.
By plodding forward with the current plan, I’m afraid there will be more than lawsuits. There will be a serious pushback from business when they see the drop off in their businesses. Some politicians who voted for it are now reconsidering. They feel they were bullied by the anti-car cabal and the bike mafia into supporting it. They may move to eliminate it.
The governor should take a hard look at what is the smart way to move forward while getting the MTA all the money it needs.
Riccio was NYC DOT Commissioner and MTA Board Member from 1990-1993. Currently he is a partner in Gedeon GRC Engineering and an adjunct professor at NYU’s Stern School of Business.
