New MTA capital plan with congestion pricing gap in funds due October 1
ALBANY, N.Y. (NEXSTAR) — The Office of New York State Comptroller Thomas DiNapoli released a report on congestion pricing in New York City, and how its cancellation left in the lurch the Metro Transit Authority (MTA). The company that runs New York's subways and regional rail has to submit a 2025-2029 capital plan to the State Capital Program Review Board by October 1.
You can read the report at the bottom of this story. According to John J. McCarthy, MTA Chief, Policy and External Relations, “We appreciate this serious analysis from the Comptroller, and intend to lay out a detailed capital plan this month that will follow the same needs-based approach taken in his report."
The report outlines how canceling congestion pricing lost revenues for the MTA, which now faces an uncertain financial forecast. New York Gov. Kathy Hochul's move to scrap the plan called into question some $15 billion for the 2020 to 2024 capital program. And that funding gap created considerable pressure for the MTA and its upcoming plan. It will impact New Yorkers for years—not just downstate—affecting comfort, safety, reliability, and access.
Put simply, MTA doesn't have enough money; the pause could cost them as much as $107 billion over the next five years. It must cut investments and put off necessary repairs, worsening transit regionally and damaging local businesses. Raising taxes and aggressively seeking new funding could keep the transportation network running, though, the report said.
Still, the report also noted the need to prioritize projects carefully. Estimated prices have already risen since previous assessments, construction costs will continue to rise over time, and any delays or cancellations would intensify those financial losses. Plus, the delay adds maintenance costs to keep old vehicles running, making it even harder to meet state goals of reducing greenhouse gases by 85% as of 2050.
"This report underlines, for the umpteenth time, why we need to implement congestion pricing as required by law. I have yet to see the slightest inkling of a realistic plan from anyone to fill in the $16 billion-plus hole that the so-called 'pause' will cost the MTA and, by extension, New York State taxpayers. The MTA is the beating heart of the entire New York City region, not to mention a major creator of union jobs upstate," said State Sen. Liz Krueger, a Democrat who chairs the Finance Committee in the New York State Senate and represents the 28th District. "It would be governmental malpractice to risk allowing it to fall into disrepair, or to forgo vital improvements."
The comptroller recommended locking in on ongoing maintenance for the upcoming capital plan while balancing some improvements.
- State of good repair and normal replacement: Updating and replacing old power stations, train maintenance yards, and structures before failure
- Rolling stock: Replacing around 1,800 old subway cars and begin transitioning to electric buses
- Resilience: Hardening the transit system for protection against increasingly extreme weather
- Accessibility: Investing in subway compliance with the Americans with Disabilities Act
- Network expansion: Penn Station and the Interborough Express projects may have enough matching funds and federal support
Dinapoli estimated a total for the capital program ranging from $57.8 billion to $92.2 billion.
"Albany is spending too much money and not providing enough value to our state's overburdened taxpayers," said State Sen. Rob Rolison, who called congestion pricing a tax on working commuters. Amid uncertainty about where new funding may come from, the Republican representing the 39th Senate District said, "By clawing back unpaid tolls and fares that total in the hundreds of millions of dollars while helping it to live within its means, we can improve public transit for New Yorkers, a function of government I fully support, and rightsize the MTA for many years to come."
Hochul decided to delay congestion pricing—charging $15 for cars entering Midtown Manhattan—over concerns that it would cost too much for a working class already dealing with the high cost of living in the wake of a pandemic.
Some have sued to reverse the pause, arguing that Hochul lacks the authority to stop the plan. Advocates said the program should start now, that its effects can be studied while in place.
"Hochul needs to start congestion pricing now to meet riders' needs and give Albany leaders a clean opportunity to debate major new funding in the budget. The comptroller's report reinforces the magnitude of the governor's mistake in stopping the program before it began," said Danny Pearlstein, the Policy and Communications Director at Riders Alliance. "If Governor Hochul's congestion pricing pause extends into 2025, she and the legislature will face impossible choices that will lead to mounting delays, fare hikes, and service cuts and threaten a death spiral in the public transit system that makes New York possible."
Should congestion pricing resurface after the November election, it could have a lower price point or include city worker exemptions. Take a look at the comptroller report below: