A bill from Assembly Member Jim Brennan, who chairs the Committee on Corporations, Authorities and Commissions, would create a transportation finance authority to collect new taxes and help fund the MTA as well as roads, bridges, and transit statewide. It’s the first major transportation funding proposal to come out of Albany this year.
“Time is growing short,” Brennan said this afternoon. The legislative session ends in mid-June, and state transportation agencies need assurances about funding before they can begin projects. “This is just a proposal,” he said. “It’s the first piece of legislation to make a proposal.”
The revenue in Brennan’s plan would come from three sources:
- A 10-cent increase in the state gas tax would yield $500 million annually.
- A half-percent income tax increase on New Yorkers earning between $500,000 and $2 million each year would raise their rate from 6.85 percent to 7.35 percent, bringing in $750 million annually.
- A mandatory contribution from New York City, starting at $60 million in the first year and adding an additional $60 million each year until the city’s contribution is capped at $300 million annually.
That makes for a total $1.55 billion annually, which would be bonded against to provide $20 billion in capital funding. Of that, $12 billion would go to the MTA, nearly filling the $15.2 billion gap in its capital program, and the remaining $8 billion would be distributed through the New York State Department of Transportation, which also has a long-term gap in its capital program.
Although Brennan supports and says he would vote for the Move NY plan, road pricing is not included in his bill, so it lacks most of the traffic-busting, safety-enhancing benefits of toll reform. Forcing the city’s hand through state legislation is also a dubious proposition to say the least.
Still, advocates welcomed the bill as the start of negotiations. “It’s important to get all the various funding options out there,” said Nadine Lemmon of Tri-State Transportation Campaign. “I hope he inspires folks to come forward with other ideas, including the governor.”