With the MTA's finances in dire straits, according to a new report, the controversial congestion pricing plan may be coming back into the picture sooner than expected — and Gov. Kathy Hochul appears near-ready to lift the pause she implemented.
New York State Comptroller Thomas DiNapoli stated in a report that increased overtime costs and a slow subway ridership recovery to pre-pandemic levels have added up to big trouble for the transit agency. Without the congestion pricing funds the MTA was counting on, it is facing a budget gap of at least $176 million — which could grow to $1.5 billion.
The report uncovered "new uncertainty" and a risk to the state operating budget, with $15 billion the MTA planned to have, now unaccounted for.
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"You could just see a downward spiral," DiNapoli said. "Whether you’re for congestion pricing or against it, you have to come up with the revenue."
Adding to the uncertainty, DiNapoli said, is that a federal agency gets final signoff. Which comes as political control is up for grabs on Election Day.
"Depending on the outcome of the presidential election, and depending on which administration is in power, could that impact on federal approval for this?" DiNapoli asked.
The comptroller said unless the MTA identifies funding, commuters may face higher fares or reduced service. The MTA Chairman said he’s already been transparent about that before the comptrollers report was issued.
"I don’t think there’s anything in there that alarms me. We are well aware of it," said MTA Chair Janno Lieber.
When MTA officials first approved congestion pricing, a range of possible toll prices were considered. That range ended up being pretty considerable: From $9 to $23 to drive into Manhattan below 61st Street at peak times.
Eventually, a price in the middle was settled on, in what seemed like a compromise. But then Gov. Hochul pressed pause.
"Fifteen dollars to institute congestion pricing was too high," the governor said Wednesday.
Hochul added that she is getting closer to lifting the pause on the controversial plan. Clarity is expected to come by the end of 2024.
"Putting forth a plan by the end of the year, as we’ve committed. We are approaching that time frame," said Hochul.
If congestion pricing does start, the governor indicated it could be at a lower toll. For example, the price could come down to $9 instead of $15 — which is within the range federal officials already approved.
Hochul also said her year-end plan would address the MTA’s other financial needs with a multi-billion dollar capital budget.
