THOMPSON TO UNVEIL PLAN TO GENERATE
MORE THAN $1.8 BILLION IN TRANSIT REVENUE
New York City Comptroller William C. Thompson, Jr. will hold a news conference Sunday to unveil a plan to generate more than $1.8 billion in revenue for the
Date: Sunday, November 23, 2008
Time: 11:00 AM
Place: Grand Central Terminal
Taxi Stand
UPDATE (11/23/08)
Here's the proposal Comptroller Thompson announced at his press conference earlier today:
THOMPSON PLAN: REGIONAL WEIGHT-BASED FEES ON PRIVATE, COMMERCIAL VEHICLES TO GENERATE TRANSIT REVENUE
-Thompson also endorses resurrection of commuter tax for a combined potential revenue of more than $1.8 billion annually-
In a move designed to meet New York City's pressing transit fiscal needs, New York City Comptroller William C. Thompson, Jr. today unveiled a plan to impose a weight-based registration fee on private and commercial vehicles.
Thompson's fee plan would generate more than $1 billion in annual regional revenue for the Metropolitan Transportation Authority (MTA) while promoting energy independence and easing parking shortages in New York City neighborhoods. Additionally, Thompson called for the reinstatement of the commuter tax, which would add approximately $762 million in annual revenue. Together, the weight-based fee and the commuter tax would generate more than $1.8 billion in annual transit funding.
Thompson announced his plan at a news conference, where he was joined by Gene Russianoff, NYPIRG Straphangers Campaign, and a representative of Transportation Alternatives.
"Once again, the MTA is looking to New Yorkers to cover its budget shortfalls while simultaneously cutting services and delaying key projects," Thompson said. "Instead of asking New Yorkers to dig deeper into their pockets to ride the subway or bus, we need creative approaches to address our transit needs."
Currently, New Yorkers register their cars for a flat vehicle use tax of $30 every two years in addition to weight-based State registration fees, which annually generates $28 million. Raising the average fee by $200 would generate an additional $365 million in annual revenue from City residents and more than $1 billion from the entire Metropolitan Commuter Transportation District (the 12 New York counties covered by the MTA).
Thompson proposed a new additional weight-based transit-dedicated assessment of $100 for vehicles weighing 2,300 pounds or less, plus $.09 for every pound of curb weight over 2,300. Under such a fee structure, a Toyota Yaris, a light and fuel-efficient vehicle with a curb weight of 2,293 pounds, would cost an additional $100 to register, while a Lincoln Navigator, one of the heaviest and least fuel-efficient vehicles with a curb weight of 5,963 pounds, would cost an additional $430 to register.
Thompson suggested that the fee could be phased in over time, allowing residents to take the fee into account when making auto purchasing decisions. He also noted that New Yorkers who own cars generally have higher incomes; therefore, the fee structure would impact New Yorkers with lower incomes to a lesser degree than seeking to raise revenues by increasing transit fares.
"I applaud Comptroller Thompson for suggesting a smart and effective way to raise funds to keep transit fares down and service and maintenance up," said Gene Russianoff, staff attorney for the NYPIRG Straphangers Campaign. Russianoff noted that if State leaders allow the MTA proposal to go forward, the riders' share for running the subways would go from 69% of expenses to an "astonishing" 83% of costs, more than double the national average for large transit systems. "Many sectors of the New York region's economy benefit greatly from the most extensive transit system in America, including drivers. It's only fair to ask motorists to help pick part of the tab."
"What rebuilt the subways 25 years ago was the pact that everyone who benefits from transit--including drivers--pays into the system," said Paul Steely White, Executive Director of Transportation Alternatives. "We support Comptroller Thompson's proposal because straphangers can't shoulder the entire burden in these tough times alone."
In addition to creating additional revenue for public transportation, Thompson indicated that the fee would have other positive effects. A weight-based fee would encourage fuel efficiency by providing residents an additional incentive to purchase lighter, more fuel-efficient vehicles. The fee essentially would raise the cost of owning a car in New York City, which would reduce auto ownership to some degree, resulting in additional parking due to a smaller amount of cars being parked, as well as the smaller size of the more fuel-efficient cars.
The fee could further be coupled with Department of Transportation-restricted parking zones in residential neighborhoods, within which only New York City-registered vehicles could park overnight. This measure would act as a disincentive for residents to register vehicles in other jurisdictions in order to evade weight-based fees.
Additionally, Thompson stated his support for the reinstatement of the commuter tax. He noted that since its repeal in 1999, the City has lost a source of revenue that could have generated more than $8.2 billion. Thompson noted that the commuter tax could add nearly $762 million annually in Fiscal Years 2010, 2011 and 2012.
"Reinstating the commuter tax would provide a much-needed source of revenue that would not burden City residents, who already contribute a disproportionate amount to fund the MTA," Thompson said. "It's time that those who benefit from working in New York City contribute their fair share."
Thompson said he is submitting his proposal to the Commission on Metropolitan Transportation Authority Financing, chaired by former MTA Chairman Richard Ravitch.
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