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What is "Congestion Pricing" and What Does It Mean for New Yorkers?

What is "Congestion Pricing"?

New York City Mayor Michael R. Bloomberg (Unaff.) has introduced, as part of his larger PlaNYC 2030 proposals for "improving" New York City by 2030, a plan to tax any one who drives (whether commuting to work or not) within Manhattan below 86th Street between the hours of 6 A.M. and 6 P.M. during the work week. Whether people call it congestion pricing, congestion mitigation or a traffic plan, it still walks, talks, looks like and is, in fact, a TAX that will hurt lower and middle class New Yorkers the most!

On Monday, July 16, 2007, New York State Governor Eliot Spitzer (D), Senate Majority Leader Joseph L. Bruno (R), and Mayor Bloomberg (Unaff.) almost got away with betraying the principle of "no taxation without representation" when they nearly ramrodded this tax through State Government. But their attempts failed, thankfully.

On Thursday, July 19, 2007, however, with Assembly Speaker Sheldon Silver (D) on board, they have agreed to form a commission that would finalize the plans for a Congestion Tax for New York City.

Luckily, it is contingent on a recommendation from the City Council and approval by the State before any fees can be collected. But, Mayor Bloomberg is allowed to purchase cameras and other equipment to begin implementing the system, probably with the expectation that the congestion tax is as good as approved.

SO WE MUST SPEAK OUT NOW TO STOP IT BEFORE IT'S TOO LATE!

The leadership of our State and City governments is not with the people on this issue. The New York State Senate tried but failed to pass a Congestion Tax bill on July 16th, despite the avid support of Majority Leader Bruno. Assembly Speaker Silver previously opposed it, but supports the creation of the Commission to formulate a traffic mitigation plan, which may very well include a congestion tax. Governor Spitzer supports the tax. New York City Council Speaker, Christine Quinn (D), released a statement on July 19th expressing her support for this tax, even though the Mayor desperately tried to pass the tax without giving the City Council a chance to vote on the proposal first. Obviously, it goes without saying that Mayor Bloomberg endorses his tax.

Even elected officials who were formerly critical of the plan headed back to Albany on Thursday, July 26th to vote for the compromise, and some have even co-sponsored the bill!

Before, the outcome was quite uncertain. But now, it appears many of our representatives are in some sort of agreement to see this massive tax increase occur, and they will likely curry the support of their colleagues to impose the tax.

HOWEVER, IF NEW YORKERS WANT TO STOP THE GREED OF A HANDFUL OF OUR PUBLIC OFFICIALS FROM FRUSTRATING THE WILL AND ECONOMIC PROSPERITY OF MILLIONS OF PEOPLE, WE MUST TAKE ACTION NOW!

The New York City Traffic Congestion Mitigation Commission, which was formed in the compromise bill, is required to develop a plan for consideration that will reduce traffic by about 6%, or a 6% increase in vehicle miles traveled per hour. The majority of the commission's appointees favored congestion pricing as the method to accomplish this when they were appointed in August. The commission has the following timeline to take it through until January 30, 2008, which is below. The state must adopt a plan by March 31, 2008 in order to receive the $354 million dollars of Federal grant money.

September 25 Meeting
* Vote on Designation of the Commission Chair
* Review State Statutory Provisions and Commission Mandate
* Review Federal Urban Partnering Requirements
* Presentation and Discussion of Mayor Bloomberg’s Traffic Congestion Mitigation Plan
* Outline of Criteria for the Evaluation of Alternative Traffic Congestion Mitigation Proposals
* Discussion of Solicitation of Public Input and Other Ideas

October 25 Meeting
* Finalization of Process for Evaluating Mitigation Proposals
* Presentation and Discussion of the Metropolitan Transportation Authority’s Comments on Mayor Bloomberg’s Traffic Mitigation Plan
* Presentation and Discussion of the New York State Department of Transportation’s Comments on Mayor Bloomberg’s Traffic Mitigation Plan
* Discussion and Evaluation of Mitigation Proposals
* New York City Presentation on Transportation Model

November 20 Meeting
* Summary of Comments Generated by the Public
* Discussion and Evaluation of Mitigation Proposals
* Deliberative Discussion by the Commission (Commission Members and Staff)

December 10 Meeting
* Deliberative Discussion by the Commission (Commission Members and Staff)

January 10 Meeting
* Presentation of Draft Recommendations to Implement Mayor Bloomberg’s Traffic Mitigation Plan and Other Traffic Congestion Mitigation Proposals
* Receive Public Comment on the Draft Recommendations

January 31 Meeting
* Presentation of the Commission’s Final Implementation Plan
* Vote on Submission to Mayor Bloomberg of the Implementation Plan

Here's the breakdown of the tax's cost to you:

 
Driving within Manhattan below 86th Street between 6 AM - 6 PM Monday - Friday

Driving Into/Out of Manhattan below 86th Street between 6 AM - 6 PM
Monday - Friday

Cars
$4 or about $1,040 a year
$8 or about $2,080 a year
Trucks
$5.50 or about $1,430 a year
$21 or about $5,460 a year
Source: PlaNYC 2030 / Annual costs calculated by multiplying price with 260 workdays a year

What's the Rush?

If you happen to be wondering about the virtually unanimous push from these elected officials, don't look too hard. The issue involves getting over $354 million of Federal funds, and these New York electeds want their hands on more "free" taxpayer money. The Congestion Tax scheme is the pre-condition that the Mayor must provide to the Federal government in order to be awarded the cash.

Instead of making a good-faith effort to improve public transportation first in areas where the majority of Manhattan-bound commuters have to drive to get into the city, they think taxing them first will be the solution. Rather, it will only be a bandaid on the symptoms of the root problem that our poor public transportation infrastructure in the outer boroughs and suburbs has created.

It just goes to show you how much our Mayor and his colleagues in Albany are willing to tax New Yorkers exorbitant amounts to get more of our money for their pet projects, with no guarantee of any benefits in return.

Let's Give It A Try! Can't We Always Get Rid of It If We Don't Like It?

Well, that's easier said than done. The City is depending on Federal grants to initiate the project, as well as potentially generating over $30 billion by 2030. And, by PlaNYC 2030's own admission, there may be only marginal changes in the amount of traffic in New York City and possibly even a negative impact on Manhattan's businesses, based on other cities' experiences--all of which is acknowledge before the plan has even taken effect (p. 77, 91).

Once our elected officials begin depending on that revenue to fund projects, there will almost be no political impetus to undo the tax and the massive system behind it, no matter what harm it poses to New York City.

Let's not forget that the City's appetite for taxes and spending almost bankrupted New York City in the 1970's. With a massive tax-and-spend program as this, it may take decades to undo it and whatever damage it might have caused in the process.

No matter what the political ideals of the people in office, governments tend to be very conservative when it comes to maintaining the influx of revenue for their projects, especially in New York City. However, we cannot jeopardize the good of our City on a massive tax-and-spend folly like this.

We Have Already Paid For Our Streets

The travesty lies in the fact that people are being twice taxed for use of roads that the public has already paid to use and maintain. PlaNYC 2030 states that the $30 billion revenues generated from the Congestion Tax will be fully directed towards improving mass transit and other transportation projects through the creation of a new public authority, the Sustainable Mobility and Regional Transporation (SMART) Financing Authority.

However, about $13 billion of taxes are already being directed to these projects, some of which according to PlaNYC 2030, have been planed or began years, if not decades ago.about (PlaNYC 2030, p. 77). There is also an estimated additional $6 billion from the Federal government, in addition to the $354 million spoken of earlier, meaning one of the wealthiest cities in the world is taking taxes from Kansans, Tennesseans and the like just so our own public officials can tax us more.

This is just a slick way of double dipping from the wallets of taxpayers to dump even more of our money into projects that cost more and take longer than they should.

$2,000 a Year Per Person for 6% - Is It Worth It?

The tax is estimated to decrease traffic by only about 1.4% to 6% (PlaNYC 2030, p. 89-91)! 1.4% is the number of current drivers expected not to drive within the Tax Zone because of the charge, and 6% is the percent of less traffic estimated to be within the Tax Zone. If the City's goal was to decrease traffic and clean up the environment, it would seem that 6% would not be enough to successfully accomplish these goals, and certainly not at 1.4%. However, if the main goal was to make a mint off of drivers and their families, then it certainly would pay off very handsomely, (about $30 billion handsome, to be exact). You decide which seems to be the primary goal of the tax, or any tax for that matter.

It Unnecessarily Increases Government's Revenue & Expands the Size of Government

Firstly, for Fiscal Year 2008, the projected surplus for the City of New York is about an unprecendented $6 billion. With that surplus, we should be reinvesting rather than scheming on how to tax citizens more. Furthermore, we should not so desperately need $354 million from the Federal government with this extra cash in the bank.

Secondly, the revenues generated through the Congestion Tax would be funnelled to the brand-new SMART Financing Authority (PlaNYC 2030, p. 77), which is yet another semi-autonomous government entity playing with a total of $50 billion of your taxpayer dollars, if this plan goes through, that is.

This new SMART Financing Authority would be a bloated allocating body, governed by "an independent and experienced board appointed by the City and State", which sounds a lot like the governance structure of our beloved inefficient and unresponsive Metropolitan Transportation Authority (MTA). It would not build anything, but would exist primarily to invest our money into projects proposed by transportation agencies, and subsequently monitor those investments (p. 77). However, the New York City Department of Transportation would be responsible for overseeing the entire tax system, while a private contractor would build and maintain the system (p. 77).

As stipulated in the plan, E-Z Pass would be utilized, and for those drivers who do not have E-Z Pass would have their license plates photographed by cameras installed throughout Manhattan (p. 89). These drivers would be given 48 hours to pay.

All of this invites new, unnecessary layers of bureaucracy and costs, when the performance of current projects do not bode well for the hyped-up productivity of such an expensive investment, even though Mayor Bloomberg would like us to take a leap of faith that all will be well in the end.

Oh, and can anyone say this system doesn't have a 1984-esque Big Brother Bloomy mystique? I think you would be hardpressed to find someone who could.

If You Don't Succeed at First, Try, Try, Again

Some of you may remember that Mayor Bloomberg has invented a couple of revenue generating schemes for people driving into Manhattan, all of which have failed.

  • Tolls on the Brooklyn, Manhattan and Williamburgh Bridges: Failed
  • Reinstating the Commuter Tax: Failed
  • Congestion Taxation: It's Up To YOU!

Congestion taxation is really a combination of the commuter tax and tolls on the Lower East River bridges. Our Mayor wants to make money off of any of you who travel to Manhattan, and he won't give up until he succeeds! So we need to speak out and stop him today!

How Manhattanites Below 86th Street are Favored, While the Rest of Us Pay Premium

The plan calls specifically for a daily charge of $4 (only about $1,040 annually) for those who only drive within the Tax Zone, that is, those who have no reason to cross the boundary. Those who will benefit are evidently Manhattanites who already can afford to live in some of the most expensive real estate in New York, and who apparently still see fit to drive in the borough with the best access to public transportation.

The rest of New York City residents in Brooklyn, the Bronx, Staten Island, and Queens, and the people who work in Manhattan from the tri-state area are going to be fined $8 (about $2,080 annually)--DOUBLE that of Manhattan residents.

At the very least, a tax should be fair and commensurate with what the people who are impacted are able to pay; this Congestion Tax is certainly nothing of the kind. That's one of the major reasons we cannot afford to let it pass!

How the Cost of Goods and Services in Manhattan Can Be Affected

With an extra daily $21 charge on all trucks delivering goods to Manhattan businesses, doing business is bound to become more expensive. If the cost of the tax is transferred to businesses and consumers, prices within Manhattan can easily become less competitive, resulting in business moving elsewhere. And any business leaving Manhattan is bad for New York City as a whole.

How Our Children, the Ill, and the Elderly Are Going to Pay for the Congestion Tax

There are quite a few out-of-state or outer-borough families who send their children to school in Manhattan. Quite a few bring their relatives to doctors and hospitals in New York City's internationally-renowned medical facilities for treatment and care. Is it fair or reasonable to place such a heavy financial penalty for making use of the terrific resources in our city, whether it be educational, for their health and well-being, or for some other reason, if driving is the only practical option for them? The answer is simply no.

No Answer for Impact on Neighborhoods Immediately Outside Zone

Transportation via subway and bus is easily accessible from neighborhoods immediately surrounding Manhattan. The meager 6% of traffic expected to be diverted away from Manhattan onto mass transit will probably drive to train stations and bus stopts nearest to but just outside the Tax Zone, such as Downtown Brooklyn, Long Island City, Washington Heights and Harlem to name a few. This is likely to increase traffic on local streets in these neighborhoods, which in their own right are already congested and will likely become more congested.

One solution offered is residential parking permits, which would ensure that only those residents living on the block can park there, or increasing the amount of metered parking (p. 91). However, the permits would need to be issued and enforced, along with metered parking regulations, creating more problems than solutions to this so-called traffic mitigation plan.

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