MTA says controversial congestion pricing plan will be rolled out in 2023 or early 2024
NEW YORK -- Facing a sea of red ink and the delayed return of riders, the MTA now says its controversial congestion pricing plan will make its debut in Manhattan by the end of next year or a few months later, allowing it to collect a whopping $15 billion a year.
For many people, it's a surprising development because it was only seven weeks ago, on CBS2, that Gov. Kathy Hochul said hurdles put up by the federal government were forcing a delay in the implementation of congestion pricing.
Now, the MTA says it's back on track, and as CBS2 political reporter Marcia Kramer reports, commuters can expect to pay a hefty fee to enter Manhattan's central business district in 2023 or early 2024.
"Big breakthrough on congestion pricing," MTA chair Janno Lieber said.
Lieber is optimistically predicting motorists will soon be taxed to enter the central business district below 60th Street after the agency worked to satisfy environmental concerns posed by the federal government.
He said he expects a federal green light by the end of this year, which would allow the agency to erect tolling apparatus in 2023.
"It's the right thing for New York because we all know that the central business district is choked. We don't have room for buses, we don't have room for police vehicles, we don't have room for paratransit, and we don't have room for Amazon and all the e-commerce that's going on," Lieber said.
The MTA is so optimistic that it will get federal approval that it named five of the six members of a new panel that will determine congestion pricing fees as well as rate reductions and exemptions. A sixth person will be selected by Mayor Eric Adams.
READ MORE: MTA says it is "fully committed to congestion pricing" after Hochul signals it may be delayed
But not everyone on the MTA board is gung ho.
David Mack, who represents Nassau County, said with the economy in freefall, now is not the time to push ahead with congestion pricing.
"The economy speaks for itself. We will be doing an injustice to go further on congestion pricing," he said.
Mack said the MTA should concentrate on making the subways safer so that riders will come back to the system.
"Did we all see the television how these two young kids attacked these police officers? Forget the attack, where's the respect of law and order? That's what we have to look at, not congestion pricing," he said.
READ MORE: Hochul, Adams not on the same page after video of teens fighting transit cops in subway
In addition to a 53 percent rise in transit crime, the board also has to deal with a sea of red ink -- a $2.5 billion gap within two years.
Officials say they will ask the governor and the legislature to come up with a new dedicated funding stream.
Kramer asked Lieber what new taxes he expects the state to OK.
"Are we talking about adding to the other revenue streams you already have, like increasing the gas tax or the sales tax or whatever, or are you looking for a totally new revenue stream?" she asked.
"Honestly, it's premature to talk about specifics. The first step is for people to understand the scale of the problem and the urgency of the problem," Lieber said.
There's yet another fiscal hurdle for commuters.
The MTA's financial plan includes a 4 percent fare hike next year. Lieber says he's hoping the governor will find extra funds somewhere in the state budget to prevent that. Of course, that depends on who wins the gubernatorial election in November.