In Manhattan, the implementation of congestion pricing has seen a marked decrease in traffic, with reports from the Metropolitan Transportation Authority (MTA) of 1.2 million fewer vehicles entering below 60th street—a 7.5% drop. The MTA's Deputy Chief of External Relations, Juliette Michaelson, commented on the visible effects of this reduction, stating, "A 7.5 percent reduction in the number of vehicles entering has made a huge difference. You will see it in increased traffic speeds. People also feel it in the fact that streets are quieter, calmer. People get to their destinations on time," in a statement obtained by ABC7NY.
The MTA anticipates that the tolls introduced will raise $15 billion, crucial for maintenance and upgrades to the transit system. Nevertheless, this amount falls short of the agency's broader financing needs. MTA Chairman Janno Lieber has appealed to state lawmakers for an additional $33 billion for their forthcoming capital plan, as detailed by ABC7NY. "It's not a secret. And it is a little bit of a mystery to me that every time the MTA capital program comes up, we treat it like, 'Oh my God, they need a bailout!'", Lieber expressed in a hearing probing the authority's strategies in combating fare and toll evasions.
Against the backdrop of early successes with the congestion tolls, Governor Kathy Hochul has introduced "affordability" proposals that involve considering new taxes and fees to plug the vast $33 billion funding gap in the MTA's budget. This comes after the MTA initiated the $9 congestion toll. "I think taxes generally will be part of the discussion," Hochul's budget chief Blake Washington admitted to reporters back in November, as reported by the New York Post.
The conversation around funding is poised to evolve, as Governor Hochul and legislators dance fiscally-polite tangos around potential new taxes and fees. In December, leaders in the Assembly and Senate officially challenged the MTA's capital plan, which left a blank space where $33 billion should have been. A spokesperson for Hochul did not confirm whether a detailed plan to fill the revenue hole will be made public within her executive budget. As Hochul gears up to release her budget proposal, she announced an increase for the New York child tax credit and a potential "inflation refund" to families—a proposal expected to cost the state $3 billion.
The conversation on MTA's funding is set to continue as Hochul's budget proposal is anticipated, with many looking toward new forms of revenue to sustain the transit system's capital plan. Past budget negotiations in New York have often seen deals made behind closed doors; however, Senate Finance Committee Chair Liz Krueger voiced that the governor should make these financial strategies public, "It should all be public facing," she urged in a discussion with the New York Post.
