Congestion Pricing Gets a Boost
DOT's $354 million grant is less than hoped, but Bloomberg calls it a "major victory"

On August 14, Mayor Michael R. Bloomberg announced that the U.S. Department of Transportation has jointly awarded the New York Metropolitan Transit Authority (MTA) and the New York Department of Transportation (DOT) a grant of more than $354 million towards the implementation of a proposed congestion-pricing plan. The city had hoped for as much as $537 million, but in a statement released by the mayor’s office, Bloomberg said, “We’ve worked very hard to secure these funds, and this is a major victory for the people of New York City.”

Federal money is contingent upon approval of the plan (or a similar one) by both the New York City Council and the state legislature. After negotiations between the city and legislature broke down last month in Albany, elected officials forged a compromise in the form of a 17-member commission to research congestion pricing and other traffic mitigation plans. The commission is expected to make a recommendation by January 31, and the legislature will then have 30 days to approve the plan. If approved, it must be implemented by March 31, 2009.

The federal money is not necessarily earmarked for the plan Bloomberg has championed, and if a different one is decided upon, the state and city must meet the same criteria to secure the funds. These include reducing the vehicle miles traveled in the congestion zone by 6.3 percent and making pricing the motivating factor in changing commuters’ transportation means.

The MTA would receive $184 million for new bus facilities, and the city would receive $112.7 million for a faster and more efficient five-borough bus system. $29.3 million would be allocated for traffic signal and pedestrian improvement. $10.4 million would go towards implementing the congestion-pricing project. $15.8 million would be allotted for ferry service that would connect Brooklyn and Queens with Midtown and Lower Manhattan. $2 million would go towards research.

The mayor’s plan is expected to generate millions of dollars in annual revenue that could be used to improve transportation infrastructure.

If it is approved, cars entering Manhattan south of 86th Street during business hours would pay $8, and trucks would pay $21. Cars driving within the designated zone would be charged $4 and trucks $5.50 per day. Cameras installed throughout the city would photograph license plates, and drivers would be expected to submit payments to the city.

All of this is part of the mayor’s PLANYC, a 30-year initiative that aims to reduce the city’s pollution, energy consumption, and traffic while increasing the quality of life. “Congestion pricing holds immense promise for the future of New York City,” said Governor Eliot Spitzer in a statement released by Bloomberg’s office. “It has the potential to mitigate the city’s severe congestion and its associated economic costs while also improving public health by reducing harmful pollutants.”

Opponents of the plan suggest that middle-class borough residents who drive into the city on a regular basis will be hit the hardest. Also, some are skeptical about whether pricing will have the intended effect of steering drivers towards public transportation. Assembly Speaker Sheldon Silver, one of the loudest opponents of the plan, expressed doubt in a statement released by his office today.

“While there has been support for the mayor’s plan, there has also been strong opposition. I have heard concerns from my own constituents. My assembly colleagues in and near New York City have heard concerns from their constituents as well. I believe it is essential to consider these concerns, and there is a process in place to do that.”

But advocates of the plan say that the price of gridlock is too high. “Drivers are already paying today in delays and unreliability,” said U.S. Department of Transportation Secretary Mary Peters, according to a New York Times article today.

“Now we’ll work with the state legislature and City Council to seize this golden opportunity to use federal funds to reduce congestion, improve air quality, and keep traffic tie-ups from choking our economy,” Bloomberg said in a statement. The U.S. Department of Transportation announced today that four other locations will receive similar federal funding: the Minneapolis area, Miami, San Francisco, and Seattle.

Rebecca Ward

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