The future of congestion pricing – the game-changing policy that can rebuild our entire region – is needlessly being called into question and may ultimately be decided in court.
With its future in the balance, it’s never been more essential for New York State to find other revenue streams to keep our beleaguered transit system operational. First, legislators need to include full funding for the MTA 2025-29 Capital Plan in the new state budget. Full stop.
Second, to ensure there is no risk that a negative outcome for congestion pricing shuts the spigot off for the critical funding it provides, thankfully there’s a real plan out there now – not a pie-in-the-sky pitch to hike taxes even more, as some have recently proposed. We can actually deliver another $1.5 billion this fiscal year for our trains, buses, and commuter rail if New York keeps its word to award up to three full casino licenses by December.
Hand wringing aside, axing the proposal that promises to raise $15 billion for the MTA’s capital program would set the nation’s economic powerhouse back decades after six successful weeks. Governor Hochul’s response that there’s no contingency plan to make up for the funds was equally laudable, given the Empire State will now have to defend its necessity in court. Lost in the hoopla, political divide, and noise of the decision, however, is the fact that even with congestion pricing, the MTA is strapped for cash.
Why the doom and gloom? Let’s remember that the MTA will still have to rely on those New Deal-era signals to move 3.6 million people each day. We must ensure the 1.4 million people who take MTA buses every day don’t freeze in blistering cold. In short, we need to do something to literally keep the trains running.
The fact is capital and operating budgets are intertwined. If the former goes down, the latter goes up. If you don’t believe me, ask Comptroller Tom DiNapoli, whose office predicted last October that the previous pause in congestion pricing would “create additional operating budget costs from higher maintenance costs.” How much higher? DiNapoli expected the impact to be as high as $640 million by 2027.
There’s no doubt congestion pricing will be tied up for weeks, if not months, in court. All the while, commuters will sit in between stations with no cell service waiting…and waiting… for their train to move. Instead of being in a state of good repair, we’ll be in a state of chaos and mass transit unfitting of the greatest city in the world.
So why leave money on the table? The casino license will cost each of the three lucky winners at least $500 million. That means, if the state indeed gives our three licenses by December like it’s promised, the MTA gets $1.5 billion this fiscal year to boost operating improvements. Again, no tax increase. No fare hike. Just cash in the bank to keep the system running.
This isn’t a one-time payment, but rather a deposit on what’s possible for New York. New gaming revenue created through these licenses will go directly to MTA coffers. That’s billions of dollars in new, incremental revenue the taxpayers don’t have to shell out.
Thankfully, Governor Hochul has made it clear in recent weeks she’s committed to doling out the licenses this year. Brian O’Dwyer, her gaming commission chair, has gone on record to say the same. Now, it’s essential they and other decision makers codify this commitment by including it in the budget due at midnight on April 1.
This isn’t to say we shouldn’t have congestion pricing, too. Instead, gaming revenue can keep all boats afloat until the policy is hopefully restored in short order. Imagine a year from now in which we have a steady stream of capital funds from congestion pricing and revenue from new gaming facilities in the Big Apple.
We can have our cake and eat it, too — ideally getting to the bakery on a reliable subway.
Scissura is the President and CEO of the New York Building Congress.
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