Governor Paterson Supports Congestion Pricing

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Governor David Paterson has officially announced his support of congestion pricing, "Congestion Pricing addresses two urgent concerns of the residents of New York City and its suburbs: the need to reduce congestion on our streets and roads, and thereby reduce pollution and global warming; and the need to raise significant revenue for mass transit improvements."

He has introduced a bill that follows the recommendations of the NYC Traffic Mitigation Commission made in January (zone starts at 60th Street, east and west side highways would not be free). Highlights of the bill are below; Streetsblog notes Paterson is "do right by his old State Senate district" (over half of his Senate constituents use mass transit). And of course, the $354 million the feds are offering if congestion pricing passes is quite tempting--New York (meaning agreement from the city and state) only has until March 31 to agree on a plan to still get the money, though.

And Mayor Bloomberg, who met with Paterson earlier this week--Paterson said on Wednesday that Bloomberg "really has a thing for congestion pricing"-- is thrilled:

"Today, Governor Paterson has demonstrated true leadership by submitting a congestion pricing bill to the Legislature that will meet all of the objectives we've set - cutting traffic and reducing pollution to improve our economy and public health, and raising revenue to fund much needed projects included in the MTA Capital Plan. The bill is a giant step forward, and its timely passage will ensure that New York gets $354 million in federal money that we've been promised. Those funds will allow us to make immediate transit improvements. We will work with the Governor and our partners in the State Legislature and the City Council to address outstanding issues - including reducing the impact on lower income drivers, and concerns about commuters who use Port Authority crossings contributing to the MTA Capital plan. Together, I'm certain we can pass a bill that will improve the lives of New Yorkers."
The City Council is holding a congestion pricing hearing on Monday, March 24. If you're interested in congestion pricing, you should consider attending--details below.

Highlights from Governor Paterson's congestion pricing bill:

o The Congestion Pricing zone would include any roadways in Manhattan south of and inclusive of 60th Street between 6 a.m. and 6 p.m., Monday through Friday, except for certain public holidays.
o Establish the fee as recommended by the Commission, including a surcharge on taxis and livery vehicles.
o Eliminate the Manhattan long-term parking tax discount for vehicles parked within the zone.
o Set out privacy protocols based on existing EZ Pass privacy controls.
o Provide exemptions for authorized emergency vehicles; safety, traffic and parking control, and inspection vehicles; sanitation vehicles; school vehicles; and privately operated over-the-road buses.
o Prescribe a residential parking permit program.
o Lay out the environmental review process for Congestion Pricing which follows the Commission’s recommendation.
o The City will oversee a monitoring program for traffic, air quality, noise, parking and other environmental impacts and release annual reports; a preliminary report will be available to the public within six months of the operation date.
o The funds raised by the fee will be used, after deducting for the cost of operations, to support the Metropolitan Transportation Authority (MTA) capital plan, which was released at the end of February.
o Priority for funding will be for areas in need underserved by transit.
o Capital expenditures will be subject to approval by the MTA’s capital program review board, and a representative of the New York City Council Speaker will have the same rights and privileges of the board members appointed by the Governor upon the recommendation of the Senate Minority Leader and the Assembly Minority Leader.
o For capital expenses derived from Congestion Pricing, the MTA will follow all legally applicable prevailing wage laws.
o Any increase in parking fees by the City, as recommended by the Commission, will go into a “transit enhancement fund” to be used exclusively for additional transit, pedestrian, bicycle and parking management improvements, including ferries.
And for this Monday's congestion pricing meeting at the City Council Chambers at City Hall. The hearing begins at 10 a.m.; some suggest arriving by 9:15 a.m. because of security. It's possible public input (on a first-come, first-serve basis) won't start until the afternoon.

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"Congestion Pricing addresses two urgent concerns of the residents of New York City and its suburbs: the need to reduce congestion...and thereby reduce pollution and global warming; and the need to raise significant revenue for mass transit improvements."

It won't do anything for the first; congestion will remain the same- trucks, busses, taxis, limo services. As for raising significant revenue (otherwise known as TAX), yes, it will do that. I very much doubt that mass transit will improve. The subways are already crowded and with all the $ pouring into the MTA, they still can't keep the place maintained. I suppose they might be able to increase the bus frequency... which will just add to congestion.

Once the government sees this as an easy source of revenue, and notes that congestion hasn't changed, it will have an excuse to increase the toll every now and again to cover the costs of the system.

We'd be better off subsidizing his affairs at the Days Inn, at least that way only a few of his constituents get fucked.

Establish the fee as recommended by the Commission, including a surcharge on taxis and livery vehicles.

so taxi fares, as well as cost of goods, will go up.


Eliminate the Manhattan long-term parking tax discount for vehicles parked within the zone. parking for residents goes up.

authorized emergency vehicles; safety, traffic and parking control, and inspection vehicles; sanitation vehicles; school vehicles; and privately operated over-the-road buses.

government "officials" get a free pass.


The funds raised by the fee will be used, after deducting for the cost of operations, to support the MTA capital plan...

I'm sure they'll find a way to swallow most of the revenues as cost of operations.

For capital expenses derived from Congestion Pricing, the MTA will follow all legally applicable prevailing wage laws.

make sure the unions get theirs.

Wow. In office just a few days and he's already done more than Spitzer in his whole first year. I like this guy.

Always looking to make money off people.

Congestion pricing isn't going to help the MTA one bit.

This is a BAD idea. Expect the price EVERYTHING to go up.

You guys are wrong about prices, so stop talking out of your asses or educate yourselves with a little math/econ before "theorizing" so wrongly.

This solves a basic concept central to Economics known as the "Tragedy of the Commons"--people who don't NEED to drive into the center of town do because it's free, so they don't bear the brunt of the social cost of their decision.

With congestion pricing in effect, those who need to drive into the city--truck drivers, delivery men, etc.--will be able to get in and out quicker. Congestion will find a LOWER equilibrium level under pricing; congestion WILL NOT be the same as it is now, since not everyone will find it worthwhile to drive in if it's more expensive.

To the extent that congestion DOESN'T completely disappear, it will be because people who economically needed to get into the city before (hence why they'd be willing to pay the fee) but couldn't because of all the congestion will finally be able to get in. In other words, congestion not dropping as much as expected would be a sign that the economic deadweight being cleared up by pricing was bigger than we expected. This would be a plus for the economy.

In other words, expect prices NOT to go up, since companies will not have to pay delivery men as much to sit around in traffic all day like they do now.

Nicely wrong, Edgar. Right now one of the main inhibitors that's keeping many wealthy suburban people from driving into the City is congestion itself. Reduce congestion and the space will merely be filled by someone for whom the $40 a week charge is meaningless. There are hundreds of thousands of wealthy Westchester, NJ and Long Island residents alread paying through the nose for their monthly transit and parking passes, not to mention the subways many of them take to work once they get here. Those people are already driving their BMWs to Metro North parking lots and the like. It would be nothing for them to keep driving into the City if congestion is truly decreased.

So let's not call this a congestion scheme -- it's a REVENUE scheme. And part of that revenue is going to come from delivery trucks. And that cost WILL definitely be passed along to the public.

BTW, don't forget that for Jersey residents who already pay the Port Authority $8 to cross the Hudson the congestion pricing scheme is an actual BENEFIT. They don't have to pay any extra and there might actually be a little less traffic, thereby giving them even more incentive to drive. How wonderful.

"In other words, congestion not dropping as much as expected would be a sign that the economic deadweight being cleared up by pricing was bigger than we expected. This would be a plus for the economy."

It's quite sad Edgar that you consider those who would be relegated to the subways by congestion pricing to be "economic deadweight." I consider them to be equal citizens as the rest of us equally entitled to use of the city's streets. If we're really going to decrease congestion then it shouldn't be by pricing people off the streets so that the Donald Trumps of the world can continue to drive unimpeded. It would be better to just close all the streets period. Or, since whatever street capacity that exists is likely to be filled by someone, decrease street capacity.

Last time I checked driving into Manhattan cost an arm and leg without any congestion pricing. The bridge or tunnel tolls, parking, wasted gas sitting in traffic yet people still drive into Manhattan.

Look at how expensive gas is now. Are people driving any less?

So geniuses, then, what is your alternate plan to alleviate traffic? Since I'm sure you all have degrees in urban planning, and are familiar with the most recent published papers of traffic simulations, let's hear it!!

The costs of this tax will be passed on from delivery services. The cart guy you buy coffee from in the morning will pass the costs on down to you. Or maybe they will cease to operate. Small businesses will be effected. The price of products in grocery store, beer at a bar, everything will increase because of the tax.

How can you charge anyone to use public roads that are paid for by tax dollars?

i agree with edgar. and in addition people don't need cars in this city. they should have to pay many more fees for owning them...ride a bike, walk..get some exercise fatties! you don't need your suv and the environment doesn't need the pollution...that being said..the MTA is absolutely run by monkeys

Suggest making congestion levees tax deductible for essential service commuters (eg Fire Dept. Police services, EMS) who might use their vehicles differently and not live right in the core.

Lawyers and Traders? Charge them extra.

Does anyone know, will congestion pricing apply to motorcycles and scooters?

I have a car and NEVER drive in to the city, NEVER. Public transportation is the way to go. I am not convinced that CP will achieve this and if the law goes into effect before the masses (for example) scurry to the 4 line from Brooklyn every AM, I can not imagine the MTA having the wherewithal to manage the crush with either more trains or more frequent arrivals into bowling green.

Money may not even come pouring in if the idea of spending so many extra dollars will cause people to not drive, then where are we? No more extra revenue and hundreds of thousands of more people jamming into overcrowded trains. I fear this will not work because it was rushed into legislation for fear of loosing the 300 plus million promised the MTA. Where are the public forums on this? Perhaps this should be put to a referendum.

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