New York Governor Kathy Hochul is quietly maneuvering to delay a plan to charge tolls to drivers entering Manhattan’s central business district, set to take effect in a few weeks, The New York Times reported on Wednesday (5).
The nation’s first congestion toll, which has been in the works for decades, is scheduled to begin on June 30. Drivers using E-ZPass will pay up to $15 to enter Manhattan south of 60th Street.
According to the newspaper, while believing that the congestion toll is a good environmental policy, the governor thinks the timing may not be ideal. She fears that the new charge could deter people from returning to the central business district, which has not yet fully recovered from the pandemic.
If successful, Hochul’s strategy could also help her fellow Democrats in the House who will be on the ballot in November. On the other hand, it would be a devastating blow to the project’s advocates who have worked for over a decade to bring this change to New York City.
It is unclear whether Hochul’s still-forming plan to delay the tolling and replace it with another revenue stream would gain the necessary approval from the New York State Legislature, which approved the toll years ago.
The toll was designed to reduce congestion in Manhattan and generate a billion dollars a year in revenue for the Metropolitan Transportation Authority. This revenue, in turn, would fund the vast and necessary construction in the local transportation system.
According to The NYT, to fill the annual billion-dollar gap, Hochul is considering a tax on New York City businesses. Such a tax would require legislative approval, which is far from guaranteed, especially with only two days left in this fiscal year’s legislative session.
The plan to charge drivers to enter Manhattan’s central business district has faced strong opposition from unions, drivers, New Jersey Governor Phil Murphy, former President Donald J. Trump, and residents of New York’s suburbs.
Other major cities around the world, including Stockholm, London, and Singapore, have charged tolls for years to enter central business districts, and transportation experts have long hoped that New York City would join the group.
Former Mayor Michael R. Bloomberg made an attempt to convince Albany lawmakers to approve a congestion pricing plan for New York City but ultimately failed. It was only after the so-called “hellish summer” of the transit system in 2017 that the plan gained traction.
Source: The New York Times