Increasing Driver License, Car Registration Fees Could Raise $550 Million for Cash-Starved MTA
December 1, 2008
So it’s “official,” our country has been in a recession since December, 2007, according to the National Bureau of Economic Research, which announced the non-news earlier this morning.
Of course, we already knew this to be true for many months. On November 20th, MTA CEO Elliot Sander told the MTA Board, that new economic forecasts show projected deficit gaps of “$383 million for 2008, $1.441 billion for 2009, $2.394 billion for 2010, and nearly $3 billion in 2012, before prior-year carryover or gap closing actions.”
As I’ve blogged before, I am very concerned about the fiscal outlook for the MTA and how cuts to services, capital projects, system maintenance, and increased user fees will impact riders. But the negative effects spillover beyond transit users. The MTA is the lifeblood of the New York metropolitan area and when it suffers, so does the regional economy.
On September 15th, the Citizens Budget Commission (CBC) testified before the Ravitch Commission and outlined a number of practical suggestions for how to increase dedicated mass transit revenue.
Today, I wrote to Governor Paterson to urge that two CBC proposals be included in his 2009 Executive budget: Raising car registration fees and driver license fees by at least $50 annually.
When CBC President Carol Kellermann testified before the Ravitch Commission she noted that today the cost for a driver license in New York is under $6 annually. Raising annual fees for driver licenses to $50 would yield nearly $300 million. New York has the 8th lowest vehicle registration fees in the country (according to the CBC’s 2006 study South Carolina has the lowest at $12, and Maine has the highest at $435), and raising the vehicle registration fees would net an additional annual revenue stream of $250 million.
With the Ravitch Commission’s report due to be released on Friday, now is the time to be examining all the options including this one and other good ideas like reinstituting the commuter tax.
Recently, New York City Comptroller William C. Thompson, Jr. outlined a proposal to impose a 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. This is an interesting idea that I believe merits further study. It differs from the CBC proposal which would see a flat fee increase for car registration fees.
In these tough financial times, I believe that it makes sense that those who choose to drive should help bear the costs of maintaining our public transportation infrastructure. These two new recurring revenue streams would constitute a good start in getting the MTA’s finances back on track.
In my letter, I suggested that during the first two to three years of this budget crisis, the MTA be given the flexibility it needs to put this revenue towards its operating deficit. But in the long term this money should be used for capital needs. After the third year I suggested that these recurring funds be dedicated 70% towards the MTA’s capital plan and 30% towards the NYS Department of Transportation Five Year Capital Plan - a fund which finances highway, tunnel, and bridge projects across the state.
I told the Governor that if these proposals were not included in the budget, I was prepared to introduce them as a separate piece of legislation. My letter to Governor Paterson can be found in the Publications area of my website.
Heartless Proposal by MTA to Double Access-A-Ride Fares is Discrimination, Plain and Simple.
November 24, 2008
I am thoroughly disgusted with the Metropolitan Transportation Authority’s proposal to double fares for Access-A-Ride users. While the MTA is considering raising fares for able-bodied straphangers by as much as 50% (from $2 to $3); they are asking riders with disabilities to absorb an unprecedented 100% fare increase from $2 to $4.
This past weekend, I joined Manhattan Borough President Scott Stringer, Congresswoman Carolyn Maloney, State Senator Eric Schneiderman, Assembly Member Jonathan Bing, and Councilmember Gale Brewer at a press conference along with advocates representing Disabilities Network of NYC, Cerebral Palsy Associations of New York State, Center for Independence of the Disabled NY, Disabled in Action, and the 504 Democratic Club. At the press conference we collectively denounced the proposed fare hike. Access-A-Ride is critical to those who need it, and the revenue that doubling this fare will bring is comparatively unimpressive.
The current standard of fare equity is the minimum a just society should expect. Like a good old fashioned train robbery, the MTA is ambushing paratransit riders because they know that people with disabilities have no other transportation options. This is the most regressive fare hike the MTA has ever proposed because those who can least afford to pay are being asked to shoulder the greatest burden.
I am also not convinced that this is a legal proposal. The transportation provisions of Title II of the Americans with Disabilities Act cover public transportation services, like the MTA system. Public transportation authorities may not discriminate against people with disabilities in the provision of their services. So if a local authority like the MTA chooses not to adequately serve clients with disabilities in its regular system, it is instead required by federal law to create a parallel paratransit system. Decades ago when the ADA was passed, the MTA chose not to make the regular transit system accessible (today there are just over 50 subway stations of 468 that have elevators), so it was required to create the Access-A-Ride service. It goes against the spirit of the ADA to charge people with disabilities more to use a system designed to compensate them for not having access to the regular mass transit system.
I will be doing everything I can to oppose this proposal and I will continue to keep you updated. My press release on this topic can be found in the Publications area of this website.
Another MTA Fare Hike: It Doesn’t Have to be Déjà Vu (all over again)
July 22, 2008
Just last year, I stood on the steps of City Hall with Gene Russianoff of NYPIRG’s Straphangers Campaign to protest an MTA fare hike. Now it’s happening all over again.
It came as no surprise to me when a MTA official leaked to the New York Times that once again the MTA is facing widening budget deficits. New York State has all but abandoned its fiscal responsibility to the MTA for the last decade and a half, leaving the Transit Authority’s fiscal health up to the volatility of real estate taxes, while forcing the MTA to balance shortfalls on the backs of middle and low-income straphangers through repeated fare hikes. The MTA is once again looking at another fare and toll hike, which would be only the second time in the 100 year history of the subway that fares are raised in back-to-back years.
While the MTA’s budget deficits look grim, and a fare hike seems unavoidable, it is only because New York State refuses to unshackle itself from one of the most regressive income tax structures in the country. What most New Yorkers don’t even realize is that if they make $45,000 a year they are in the same income tax bracket as New York’s elite millionaires and billionaires.
Last March the Assembly Democratic Caucus announced a plan to raise $1.5 billion in revenue for transportation through a less than 1% income tax surcharge on those New Yorkers earning over a million dollars. While Governor Paterson and the State Senate did not embrace this plan at the time, I believe the current state of the MTA’s finances demand that the Governor take a second look. If Governor Paterson has the foresight to call the legislature back to Albany to pass some form of the millionaire’s tax he would break the cycle of balancing the MTA’s budget on the backs of straphangers who can least afford to pay.
But an income tax surcharge on those earning over a million dollars is only a short term solution. If Governor Paterson has the vision and the fortitude he should champion a more progressive income tax structure as the centerpiece of his 2009 legislative agenda, such as the Working Families Party has put forward, we should go far beyond just plugging the MTA’s budget gaps and instead reinvigorate our State’s fiscal health, while giving millions of middle- and low- income New Yorkers tremendous tax savings.
