The New York Metropolitan Transportation Authority’s working price range may take greater than an $800 million hit starting subsequent yr because of the indefinite halt positioned on the state’s congestion pricing program by New York’s governor, the company’s finance chiefs stated at a board assembly yesterday.
Whereas congestion pricing was aimed toward producing income for the MTA’s capital funding program, the absence of those revenues creates a ripple impact, based on the company’s deputy CFO, Jai Patel.
Delays in shopping for new buses and commuter rail locomotives will improve upkeep prices to maintain the prevailing gear going. As well as, about 7,300 workers who have been going to be engaged on and paid by way of the capital price range can be transferred to working jobs and paid from that price range. Then there’s the chance of potential earlier debt issuance to account for. “As a part of the pause, if money move is required, the MTA would wish to subject billion {dollars} of debt earlier within the monetary plan than beforehand deliberate,” Patel informed the board.
“The influence of the congestion pricing pause has not but been integrated into the price range past 2024 underneath the belief both that the pause will probably be lifted or the substitute income will probably be offered,” stated Kevin Willens, MTA chief monetary officer. “However as we beforehand said, the monetary plan will probably be negatively impacted if that is not the case.”
MTA Chair and CEO Janno Lieber underscored the significance of the capital investments the tolling plan was to assist pay for. “Funding defending and preserving the system for future generations comes at a price,” he stated. “As fiduciaries of the MTA, I feel we should step up and inform the world that it must be paid for within the current 2020 to 2024 capital program.”
The one vivid spot for the MTA got here Tuesday when Gov. Kathy Hochul discovered $54 million in state funds to restart preliminary work on the Second Avenue subway extension undertaking, which had been stopped in June following the pause to the congestion pricing plan.
Advocates sue New York governor
In different developments, two lawsuits have been filed final week towards the governor in search of to overturn her resolution to pause the congestion pricing program. One motion was filed by the Metropolis Membership of New York, a corporation selling good governance, and two Manhattan residents. The opposite swimsuit got here from Riders Alliance, Sierra Membership and the New York Metropolis Environmental Justice Alliance.
“Subway and bus riders organized, campaigned for years and eventually gained congestion pricing,” stated Riders Alliance Govt Director Betsy Plum in a July 25 electronic mail. “We’re not giving up our victory simply because Governor Hochul broke the legislation. After years of working carefully with the governor to start out this system, her betrayal of the general public transit community we rely on left us no alternative however to go to court docket.”
Till June of 2024, the New York governor stood behind the state’s congestion pricing program for Manhattan. “Congestion pricing will scale back visitors in our crowded downtown, enhance air high quality and supply crucial assets to the MTA,” Hochul stated in a June 27, 2023 assertion. “We sit up for shifting forward with the implementation of this program.”
Lieber informed the board yesterday, “We do take the governor at her phrase that she is dedicated to funding the capital program by way of congestion pricing.”
