Lawmakers in Albany are scrambling to find a solution to the financial gap in the MTA’s capital plan caused by Governor Kathy Hochul’s recent decision to eliminate the congestion pricing toll. In an effort to address this issue, state lawmakers from both the Assembly and the Senate are considering a bill that would provide the MTA with a promise to cover the expected $1 billion in congestion pricing revenue for the next 15 years.
The proposed bill, described by State Senate Deputy Majority Leader Michael Gianaris as a “glorified IOU,” would allocate funds to the MTA without specifying the exact details. The language of the bill is expected to be released on Friday, with a vote scheduled for later in the day.
Lawmakers are expressing frustration with Governor Hochul’s sudden decision to scrap the toll just a day before the legislative session was set to end, leaving no immediate plan to replace the anticipated revenue. The fear is that this move puts the MTA capital plan in jeopardy. Gianaris, while criticizing the governor’s actions, showcased a pair of MTA-branded socks as a symbol of his commitment to finding a solution.
Initially, Hochul had proposed increasing the payroll mobility tax on businesses as an alternative to congestion pricing. However, this idea faced backlash from lawmakers and even some of her allies in the business community. It was a surprising shift, as earlier this year, Hochul had firmly rejected any tax hikes as part of budget discussions.
With the payroll mobility tax proposal effectively dead, lawmakers have been working alongside Governor Hochul and the MTA to devise a viable alternative. Their goal is to ensure that crucial projects receiving capital funds remain intact and that the financial stability of the transit agency is maintained.
The level of support for the “IOU” measure remains uncertain in both houses of the legislature. Some lawmakers have already expressed their intention to vote against it. The fate of the bill and the future of the MTA’s capital plan hang in the balance as lawmakers continue to navigate this complex issue.
