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Fact Check: Congestion Pricing is Not a “Regressive Tax”

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One of the most oft-repeated slams against congestion pricing we heard at this week's Congestion Mitigation Committee hearings is that congestion pricing would be a "regressive tax," an unfair burden to poorer New Yorkers.

Is congestion pricing regressive? The data suggests otherwise.

As the chart above shows, even in Brooklyn Council member Lew Fidler's heavily auto-dependent district, households with a car earn more than twice the income than households without. Meanwhile, only 5.3% of workers living in Fidler's distrit drive to work in Manhattan south of 86th Street (unfortunately, Fidler is probably one of them). Fact sheets for Richard Brodsky, Vivian Cook, Denny Farrell, Jeffrey Dinowitz and other congestion pricing opponents' districts are equally revealing and very much worth a download. Cook, for example, represents a Queens district where only 3.5% of workers drive into the proposed charging zone for work.

In testimony before the Traffic Congestion Mitigation Commission, the Tri-State Transportation Campaign argued the point. From this week's Mobilizing the Region:

Some anti-pricing politicians seem to have dressed up for Halloween as populists defending “working stiffs” from a “regressive tax” on driving. But an analysis of Census data by TSTC and the Pratt Center for Community Development shows that, in all but one State Assembly district in NYC, vehicle-owning households are 50% wealthier than households without a vehicle; in nearly half of districts, average income is twice as high.

Furthermore, only a small minority of commuters drive alone to the proposed congestion pricing zone (CPZ); this is true not only in Manhattan but in the outer boroughs and the surrounding suburban counties. For example, only 5.1% of workers from Rockland County drive alone to the proposed CPZ. In Westchester, 3.4% of workers drive alone to the CPZ. In Nassau and Suffolk Counties, the percentages are even lower.

Fact sheets containing a breakdown of commuting patterns by mode and destination, vehicle ownership statistics, and the average incomes of vehicle-owning households and non-vehicle-owning households are available online. The fact sheets cover counties and City Council, state Assembly, state Senate, and U.S. Congressional districts in the New York metropolitan area.

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Traffic Congestion Mitigation Commission Opens for Business


Westchester Assembly member Richard Brodsky on Mayor Bloomberg's congestion pricing proposal: "My problem is that I don't understand what you've proposed."


"This is going to be interesting," Straphangers Campaign Senior Staff Attorney Gene Russianoff said as he waited for the start of yesterday's inaugural Traffic Congestion Mitigation Commission meeting. "Usually with these things, the fix is in before you start but I really don't know what's going to happen."

Commission chairman Marc Shaw, a former Bloomberg Administration deputy mayor, opened up the meeting saying, "I'd like the Commission to operate as informally as possible." It was a not-so-subtle suggestion that the presence of the press and public weren't necessarily going to help the 17-member group come to a deal any more quickly, and that the real discussion would be taking place offline. When someone in the crowd complained that Shaw's microphone wasn't working and no one could hear what he was saying, Shaw joked, "Good."

After a unanimous vote ratifying him as chairman, Shaw took a few minutes to describe the context in which they'd be working. "The most important thing is the economic backdrop," Shaw said. "We'll be talking about slower economic growth in the next 12 to 18 months. As we look for ways to provide resources for the MTA in its capital plan, we're not going to have any new state or city resources."

As for the city's gridlock, Shaw said, "At end of the day there are only two ways to deal with traffic congestion in this town. One way is to have less economic activity take place in midtown and downtown, a choice that no one wants. The only other way to deal with congestion is to find ways to improve mass transit."

Noting that the Commission would need "a fairly aggressive work plan" in order to come up with an agreed upon plan within the four month time frame laid out in the deal made with the US Department of Transportation, Shaw offered a set of criteria by which various traffic reduction proposals might be measured consistently. The criteria were:

  • Reduction of vehicle miles traveled
  • Peripheral parking and traffic impacts to neighborhoods
  • Privacy issues
  • Air quality and environmental concerns.
  • Impact on various economic classes
  • Revenues for mass transit
  • Cost of implementation
  • Best practices
  • Overall economic impact of any proposal

Following Shaw's introduction, Rohit Aggarwala, City Hall's Long Term Planning and Sustainability Director presented Mayor Bloomberg's proposal for a three year congestion pricing pilot program and some of the thinking and data behind it (see Aggarwala's presentation here)

Aggarwala noted that about 30 percent of travelers into Manhattan's Central Business District go by car or truck and that despite significant improvements in subway and bus service, that "modal share" hasn't changed since 1975. That "leads us to believe that transit improvements and incentives alone would be insufficient" to reduce traffic congestion," Aggarwala said.


A slide from Rohit Aggarwala's presentation to the Commission.

Aggarwala also noted that "only a small percentage of New York City residents," 4.6 percent, "drive in every day as their main way to get to work." Even among Staten Island residents, the percentage of commuters regularly driving in to the CBD doesn't reach 10 percent. If you looked at what causes traffic, one of Aggarwala's slides showed that 59.5 percent of the vehicles in Manhattan's CBD are private autos. About 30 percent are taxis and for-hire cars.

At the end of Aggarwala's presentation, Shaw opened up the floor for questions, most of which came from two of Assembly Speaker Sheldon Silver's three appointees, Northern Manhattan Assembly member Denny Farrell and Westchester Assembly member Richard Brodsky.

"Is it a tax or is it to lower the amount of vehicles coming in?" Farrell asked.

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Pricing Panel Appointees Announced

From NYC.gov. Bios of the members after the jump.

Mayor Michael Bloomberg today joined Governor Eliot Spitzer, Assembly Speaker Sheldon Silver, Senate Majority Leader Joseph Bruno, Senate Minority Leader Malcolm Smith, Assembly Minority Leader James Tedisco, and City Council Speaker Christine Quinn to announce appointments to the New York City Traffic Mitigation Congestion Commission established by the Governor and Legislature as part of the congestion pricing legislation.

Mayor Bloomberg appointed three people to the commission: Gene Russianoff from the New York Public Interest Research Group and the Straphangers Campaign, New York City Department of Transportation Commissioner Janette Sadik-Khan and civil rights attorney and Executive Director of UPROSE Elizabeth Yeampierre.

“Today we are continuing to move forward and work with our partners in State government and in the Council to relieve congestion in New York City,” said Mayor Bloomberg.  “Together, we’ll reduce traffic, improve New Yorkers’ health and strengthen the City’s economy.”

Governor Spitzer’s appointments include former First Deputy Mayor Marc Shaw, Port Authority Executive Director Anthony Shorris, and Metropolitan Transportation Commission Executive Director and CEO Elliot “Lee” Sander.  Mr. Shaw will be nominated to be the head of the commission. 

Governor Spitzer said, “Putting the congestion pricing commission in place is an important step towards creating a healthier, cleaner environment for our children and generations to come.   The Commission has a vital task to ensure the ability of New York City’s continued growth, and do so in an environmentally responsible manner.  My nominees all have extensive transportation and public policy experience that will ensure that the congestion pricing plan is well thought out in terms of the impact on the transportation system, the economy, and the environment of the City of New York.  My thanks go to the Mayor and his staff for their hard work on this crucial issue.”

Assembly Speaker Sheldon Silver appointed Assemblyman Herman “Denny” Farrell, Jr., Assemblyman Richard L. Brodsky, and Assemblywoman Vivian E. Cook. 

Assembly Speaker Sheldon Silver said, “The traffic congestion mitigation legislation signed into law by the Governor last month outlines a process for a thoughtful and in-depth discussion of the most effective means to address traffic congestion and related health and environmental issues. I am pleased with the nomination of Marc Shaw to head this effort. His demonstrated experience and ability to build consensus on difficult issues will be a great asset to this Commission.”

Senator Bruno appointed New York City Central Labor Council President Gary LaBarbera, SUNY Chairman Thomas F. Egan and Nassau County Council Chamber of Commerce President Richard Bivone to commission.

“We are pleased to join Mayor Bloomberg and others in announcing the Senate Majority’s appointments to the New York City Traffic Congestion Mitigation Commission.  By naming the members of this important commission, we have taken another step forward in our efforts to make New York a national leader in reducing traffic congestion, modernizing mass transit and improving the quality of the air we breathe,” Senate Majority Leader Joseph L. Bruno said.

Senate Minority Leader Malcolm Smith appointed Counsel and Project Director of Arverne By the Sea, Gerard Romski, to the Commission.

“Mr. Romski will be a strong asset for members of the Senate Democratic Conference in working to address New York City's long-term transportation needs,” Senator Smith said. “His appreciation of public transit's role in that process as well as his open mind about the structure of any traffic congestion mitigation plan will serve our Conference well.”

Assembly Minority Leader Jim Tedisco appointed Environmental Defense New York Regional Director Andy Darrell to the Commission.

“Andy Darrell’s track record on environmental and health-related issues is second to none,” said Assembly Republican Leader Jim Tedisco. “His input and ideas will be invaluable as we look for answers to New York City’s traffic congestion problems. I am honored to appoint him to this crucial commission.”

City Council Speaker Christine Quinn has appointed Drum Major Institute Executive Director Andrea Batista Schlesinger, Greater Allen Cathedral CFO Edwin Reed and Partnership for New York City President and CEO Kathryn Wylde to the Commission.

“New York City anticipates adding nearly one million new residents over the next two decades, and we must have a forward-looking plan in place to handle such substantial growth,” said Speaker Christine C. Quinn. “We are confident that the Commission will carefully consider the different proposals and find a responsible and impartial solution to reduce traffic congestion in our City. The Council’s appointees are extremely familiar with moving and shaping public policy in our diverse communities.  They bring a broad range of experience that will enable the Commission to come up with a plan to make New York a cleaner, greener, more livable city.”

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Congestion Pricing Bill, Take 3.

Liz Benjamin has the latest scoop on congestion pricing legislation in Albany:

The third version of a bill dealing with congestion mitigation in
the city was introduced yesterday in both houses of the state
Legislature.

The Assembly and Senate are scheduled to return to Albany Thursday
to take up this new bill – and nothing else. Each of them will be
eligible to collect $49 worth of taxpayer-funded per diem pay to cover
meals and other incidentals, and those who are traveling more than 50
miles will be eligible to put in for that to be publicly paid for, too.

NOTE: The full-day per diem is $152 while
the half-day is $49, I’m informed by the Speaker’s press office. The
mileage reimbursement depends on how far a lawmaker travels. Just FYI - and mine.

The measure,
which represents the four-way compromise hammered out by the governor,
legislative leaders and Mayor Bloomberg last week, is a program bill
from Gov. Eliot Spitzer.

Assembly Speaker Sheldon Silver is the main sponsor in his house.
Co-sponsors include two of the most outspoken opponents to Bloomberg’s
congestion pricing plan – Assemblyman Richard Brodsky, of Westchester;
and Assemblyman Denny Farrell, of Manhattan; along with two who
supported the mayoral measure: Assemblyman Jim Brennan, of Brooklyn;
and Assembly Minority Leader James Tedisco, of Schenectady.

In the Senate, the bill is being sponsored by the mysterious Sen. Rules.

A reader sent along this helpful comparison
between the new bill and the Bloomberg bill the Senate moved out of
committee but never brought to the floor for a full vote after Senate
Minority Leader Malcolm Smith made himself a target of the mayor’s
wrath by saying that his members wouldn’t be voting unless there was a
deal with the Assembly.

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If Albany Lawmakers Don’t Go Back to Work, NYC Loses

denny_farrell.jpgSounding frustrated, Mayor Bloomberg said in his radio address this weekend that it would be "absolutely ridiculous" for state lawmakers to leave hundreds of millions of dollars in federal funds to another city by rejecting New York City's congestion pricing plan.

Opponents of Mayor Bloomberg's plan, like State Assembly Member Denny Farrell, a Democrat from Northern Manhattan, have suggested that federal funding doesn't actually hinge on approval of congestion pricing by the state legislature.

Farrell and friends are wrong.

The federal Transportation Research Board is holding its summer meeting in Chicago right now, with members of the nine finalist cities vying for federal funds in attendance. Patrick Decorla-Souza is co-chair of TRB's congestion pricing committee. Roger Herz, a TRB member here in New York City sat in on a meeting of the pricing committee, Sunday afternoon. Herz reports:

Decorla-Souza reiterated that for New York City to win federal funding for its congestion pricing pilot project, state approval is essential. The U.S. DOT has given the city a deadline of July 16 to submit a legislatively approved plan. The federal DOT has receved 25 applications for federal grants for congestion pricing pilot projects. Nine semifinalists, including New York City, were invited to make presentations directly to Transportation Secretary Mary Peters. A maximum of five finalists will be chosen to divide up one billion dollars in grants. New York City's application is considered likely for federal approval since it is so different than other proposals, most of which involve using the federal funds to build new toll roads and HOV lanes rather than de-congesting existing city streets. The federal DOT plans to announce the five finalists by August 8 and there is very little flexibility on these deadlines.

In other words: If New York State Assembly Members do not return to work and find a way to approve the Mayor's congestion pricing plan within the next week or so, hundreds of millions of dollars in federal grants -- funding that would be used for immediate mass transit improvements throughout the five boroughs -- will go to other cities.

Photo: Herman "Denny" Farrell Jr. (Suzanne Plunkett/Associated Press) via CityRoom

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From a Sea of Green, Bloomberg Works a Tough Room

Flanked by dozens, if not hundreds, of citizen spectators in bright green "I Breathe and I Vote" t-shirts, Mayor Michael Bloomberg and city staffers this morning made the case for a three-year congestion pricing pilot program to a largely hostile cadre of state Assembly members.

070608_040.jpgSeated alongside ten colleagues in the auditorium of the New York City Bar building in Midtown, Herman "Denny" Farrell, Jr. (D-New York), set the tone right away. In opening remarks, Farrell complained that legislators had been chastized in the media for not acting on PlaNYC before "a single public hearing" could be held, and pledged that the hearings would uncover the facts -- and "just the facts" -- about congestion pricing.

"Clearly, something must be done" about congestion, Farrell said. "However, we must be sure that the cure is not worse than the disease."

Farrell disagreed with Bloomberg over whether a possible $500 million federal grant for city transportation projects hinged on the approval of congestion pricing by state lawmakers, insisting that other initiatives could attract the funds. Bloomberg told Assembly members that almost half of the $500 million would cover pricing start-up costs, while the remaining funds would be invested in immediate transit improvements in the run-up to implementation. The mayor, having met with U.S. Secretary of Transportation Mary Peters yesterday, said the feds will steer the half-billion dollars to another city if congestion pricing doesn't clear the legislature.

Deputy Mayor Dan Doctoroff said pricing is expected to net $380 million in revenues in its first year, all of which would be spent on further transit upgrades. Farrell was unimpressed, wondering what effect a congestion charge would have on "working folks," and predicting that cars kept off Midtown streets by pricing would be replaced by trucks. When Doctoroff reminded Farrell that large commercial trucks would be subject to a $21 fee, Farrell was dismissive: "It's a write-off, though."

At times Farrell seemed to be arguing for the sake of arguing. In discussing the E-ZPass technology that would be used for billing and collections, the Assembly member declared "I don't give E-ZPass my money." When Bloomberg and company explained that congestion charges could be paid online, by phone and at retail locations throughout the city, Farrell responded with "I don't have a computer."

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Bloomberg Upbeat, Media Less So, Ahead of PlaNYC Hearings

excelsior.jpgWith a scant few weeks left in the session, the state Assembly has scheduled the first of six hearings on PlaNYC -- including, of course, congestion pricing -- for Friday at 10 a.m. in the auditorium of the Association of the Bar of the City of New York, at 42 West 44th Street.

The Daily Politics reports:

The hearing will be conducted by the Assembly Ways and Means Committee, chaired by Herman “Denny” Farrell, Jr.; the Transportation Committee, chaired by David Gantt; the Corporations, Authorities and Commissions Committee, chaired by Richard Brodsky; the Energy Committee, chaired by Paul Tonko; the Environmental Conservation Committee, chaired by Robert Sweeney; and the Cities Committee, chaired by James Brennan.

But is it too little, too late? Though Mayor Bloomberg has refused to criticize state lawmakers for premature criticism of congestion pricing, the Daily News, for one, has not held back:

No bills have been introduced, no hearings held. Gov. Spitzer didn't mention the topic when he met with legislative leaders last week, until Senate GOP leader Joe Bruno chided him for the oversight.

At this rate, the waters of melting glaciers will be lapping at the Empire State Building doors before Mayor Bloomberg's proposal gets out of committee. When it comes to gridlock, the Manhattan streets have nothing on the Capitol corridors.

The editorial board at the Times has expressed similar sentiments (though you'll need a subscription to read them at this point). And the News blog's Elizabeth Benjamin wonders if the hearings are a sign of progress at all.

I asked [Press Secretary] Stu Loeser whether Mayor Bloomberg plans to participate in the Assembly Democrats' first hearing on congestion pricing in Manhattan this Friday, and also if he considers the event a positive development or a stalling tactic.

Bloomberg is "looking forward" to testifying, Loeser replied, adding: "It's very encouraging that the Speaker has made it a priority in the last month of session to find time to discuss the merits of PlaNYC."

So what are Assembly members -- the ones who haven't already endorsed PlaNYC -- concerned about? Pricing opponent Richard Brodsky (D-Westchester) told Benjamin that Bloomberg can expect questions regarding "the consequences of installing hundreds more cameras throughout Manhattan to determine who needs to be charged for entering the congestion pricing zone and the idea of charging for access to public roads based on an individual's ability to pay."

Photo: stgermh/Flickr