In his first public comments since New York Gov. Kathy Hochul blindsided him by abruptly ordering a pause on congestion pricing, MTA Chairman and CEO Janno Lieber asked and attempted to answer the $15 billion question:
"So what now?"
The MTA held a press conference Monday afternoon, days after lawmakers ended the legislative session without plugging the funding gap caused by Hochul's decision to put a halt on congestion pricing. She paused it just over three weeks before it was supposed to start.
Lieber detailed how the transit agency will have to "reprioritize, re-sequence and shrink" their financial plans and the their Capital Program. An MTA official said last week that improvement projects like electric buses, accessible subway stations and new signals would likely be put on hold.
"Mass transit is too important to the city and to this 23 million-person region to go backward, and we’re not gonna let that happen," said Lieber. "We need the funding in order to move forward...We got a tall order and we’re behind the 8-ball right now, and that’s why were’ taking these, frankly, serious steps to carve up the Capital Program and make sure we don’t let the system fall into disrepair."
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When the state legislature failed to act at the end of last week, it left a billion-dollar-a-year hole in his transit agency's budget and further questions about how New York plans to pay for long-awaited updates to the subway system.
Lieber, who said he found out about Hochul’s decision the night before she made the announcement, noted that he has not considered resigning in protest of the governor's sudden change of position. He also did not share specifics of the MTA's plan going forward, but did outline how the agency plans on moving forward without funding coming from the congestion pricing plan.
He said the biggest priority is to "fight like hell to make sure we don’t have to reduce service...we have actually grown service on subway lines, on bus lines, especially on commuter rail. We don’t want to lose that so we’re going to focus on the financial situation and how to minimize those impacts."
Lieber clarified the MTA is not "giving up on congestion pricing," which he said is required by state law to be instituted at some point, but the transit agency can't start the program on its own. It needs signoff from the New York Department of Transportation, an approval that does not appear likely soon.
"The governor has been very upfront about the fact that it ain’t coming from the state of New York," said Lieber.
The MTA was expecting to receive billions from the nation’s first “congestion pricing” scheme, with motorists paying to enter Manhattan south of Central Park. The tolls, set to launch later this month, were set to finance $15 billion in capital projects for the beleaguered transit system, and had been expected to yield $400 million this year and then $1 billion annually, according to the New York City Independent Budget Office.
The governor, at an event in the Bronx on Monday, stood behind her decision to halt the $15 toll citing a sluggish economic recovery — but she hinted for the first time that the tolling plan could be revived in the future, that now is not the right time for congestion pricing.
“There’s a big difference between a pause and elimination. Elimination was an option. I said I’m committed to congestion pricing," Hochul said.
She didn't say when that pause might lift. The plan will not be going ahead as planned in June, likely putting key transit projects on the back burner — like subway signal modernization and adding elevators to dozens of inaccessible stations.
As for Phase 2 of the Second Avenue Subway, Lieber said the MTA will "do our best" to prevent the grant from being put at risk, but added "though that is a challenge." When it comes to the ADA work that was set to be done, the agency will "squeeze out as much station accessibility work as possible," while admitting that "we can’t make up money we don’t have."
Hochul had long been publicly supportive of the congestion pricing scheme, chalking up her change of heart to the financial burden she said the toll would pose on New Yorkers already struggling with the high costs of living, as well as its possible impact on New York City’s ongoing economic recovery from the pandemic.
But the governor still insists all the projects would go forward as planned.
"Those projects will go forward. But to assume the only funding had to be congestion pricing shows a lack of imagination about — I am committed to these projects," the governor said.
The governor hasn't said how she would replace the funding that the MTA was banking on receiving from the toll to pay for upgrades and fixes. Hochul had suggested raising taxes on businesses to make up for the toll revenue. But state lawmakers rejected that plan and didn’t take up legislation to replace the congestion pricing revenue before the legislative session ended Friday.
Plenty of critics accused the governor of postponing the fee because of the upcoming election. She acknowledges the criticism and simply says that is not the case.
Hochul and Lieber, who have appeared together at numerous transit projects in the past, almost always appear to be on the same page. But now they seem to be miles apart.
"Bottomline: This phase of the MTAs work is a huge challenge…It may feel right now like things are a little crazy and maybe even that there’s a crisis, but we need to stay focused so that we can maximize the situation for our riders, they are our focus right now," said Lieber.
Many drivers, especially in the suburbs, have celebrated the unexpected pause, saying the fee was way too high. But those who rely on mass transit have not been happy. Some have said they’re still pressuring Hochul to reconsider.
"I want to say to the folks who are frustrated that this reversal took place: I can relate. I am incredibly moved by how New Yorkers, transit advocates but regular New Yorkers as well, have turned out in full force and raise their voices to show support for transit and for the MTA," Lieber said. "Loving the MTA is not a 365-job for New Yorkers, but in the last week we have felt it, and I want to acknowledge that."
The Associated Press contributed to this report.
