Hochul urged to move ahead with congestion pricing

(The Center Square) — New York Gov. Kathy Hochul is being pressured to come up with a new plan to implement congestion pricing in New York City after she indefinitely suspended the controversial program.

In a letter to state lawmakers, a coalition of transportation advocacy and business organizations called on them to tell Hochul to "obey" the state’s 2019 congestion pricing law by implementing a $15 per vehicle toll on vehicles entering Manhattan's business district.

The groups, which include Reinvent Albany, the Real Estate Board of New York and the New York chapter of the American Institute of Architects, argue that Hochul's unilateral suspension of congestion pricing violates the requirements of a 2019 climate change law that requires New York to reduce greenhouse gas emissions 40% by 2030 and no less than 85% by 2050 from 1990 levels.

"The governor’s action spells disastrous consequences for transportation in the New York metropolitan region, threatens jobs and raises major questions about the state’s commitment to its accessibility, environmental justice and climate goals," they wrote.

The congestion pricing plan, which called for charging motorists a new $15 toll to enter Manhattan, was projected to raise $1 billion annually for the Metropolitan Transportation Authority, which operates the fleet of subways, buses and commuter rail trains. The agency had planned to leverage the funds to borrow $15 billion to upgrade subway signals and stations to make them more accessible, among other projects.

The coalition points out that the MTA has suspended work on $16.5 billion in capital investments to offset the loss of revenue from Hochul's decision to shelve the program. They argued that the move would impact service on the public transit system and end up costing the state's taxpayers more down the road.

"All of these cuts spell a much less functional and attractive future transit system that is more prone to breakdowns and is more costly to maintain," they wrote.

The loss of congestion pricing capital funding will also impact the MTA’s operating budget, the groups said. Debt service costs would rise by an estimated $300 million because the MTA will need to borrow earlier, likely at higher costs, they said. Bus maintenance costs will add another $50 million to the MTA's budget expenditures as the agency slows the purchase of new buses to offset the loss of revenue, they said.

"Similarly, extra maintenance costs on older commuter trains will cause maintenance costs to rise by $20 million a year and increase likelihood of train failure," they wrote.

Hochul was an early supporter of congestion pricing but reversed course in June, when she directed the MTA to "indefinitely" pause the program, which was set to go into effect on June 30. The Democrat said she still supports the program's goals to reduce traffic and pollution but said New Yorkers "are getting hammered on cost, and they, and the economic vitality of our city, must be protected."

The move has prompted several legal challenges, including one filed by environmental groups that challenges Hochul's authority to single-handedly block implementation of the 2019 MTA Reform and Traffic Mobility Act, the law that calls for implementing the program. Another lawsuit claims Hochul's move to suspend congestion pricing violates a constitutional right to clean air and a healthy environment.

However, the state was also being sued by New Jersey and New York opponents of the congestion pricing plan, who had called the proposed tolling charges a "cash grab" for the MTA that would hurt commuters.