By John Reichman, Esq.
Governor Murphy has sued the federal government over its approval of New York’s congestion pricing plan. There is a way to settle the dispute that benefits both New Jersey and New York.
I represent 34 New Jersey environmental, labor, and transit groups who submitted an amici brief in support of the tolling program. We believe congestion pricing is in New Jersey’s interest; the vast majority of New Jersey residents who commute into Manhattan’s Central Business District (CBD) use public transit and will benefit from congestion pricing. It will also make our air cleaner, reduce greenhouse gases, and reduce commute times for those who continue to drive.
But a good program can be made better by using some of the tolling revenue to improve mass transit from New Jersey into the CBD.
The tolling program is projected to raise approximately $1 billion in annual revenue over the next ten years, part of which will fund improved Metro-North and LIRR service into Manhattan; a carrot and stick approach whereby New York commuters will pay more to drive into the CBD, but also will be incentivized to use transit through improved service.
For New Jersey commuters there is only the stick; no funds are allocated to improve transit into Manhattan. Meanwhile NJ Transit (NJT) is also facing a fiscal crisis. NJT riders are facing a 15% fare hike. Next year, NJT’s projected deficit will be between $700 million and $1 billion. While the Governor has proposed a corporate transit fee (CTF) to address this deficit, its passage is uncertain. Further, even if the CTF passes, NJT’s capital budget will remain chronically underfunded as the Governor continues to call for NJT capital funds to be used to pay for operating expenses. This has led to many crucial infrastructure projects remaining unfunded.
These facts ineluctably lead to what would be a fair, and indeed obvious, settlement of the action: in return for New Jersey discontinuing the action, New York would provide $500 million in dedicated funding to NJ Transit, $50 million annually, over the ten-year life of the tolling program, to pay for capital programs to improve mass transit into the CBD.
This is a win-win solution.
For New Jersey, It would provide NJT with desperately needed funds. Politically, the Governor could rightfully claim an important victory and justification for filing the action. It would also neutralize the complaints by environmental and progressive groups and editorials that the Governor is wrong and hypocritical in opposing a plan that would reduce greenhouse gases and toxic pollutants. There are innumerable ways this money could be used to improve commutes into New Jersey such as one ride train trips from Bergen County, weekend train service and improved and increased bus service through the Holland Tunnel.
New Jersey would also be giving up little. Even if New Jersey prevails in the lawsuit, that will only delay, but not ultimately preclude, the tolling program.
This settlement would also benefit New York. The MTA has already delayed projects it is planning because of the lawsuit, which with appeals could go on indefinitely. Improving commutes by transit from New Jersey into the CBD would further a central goal of the tolling program, keeping vehicles out of the CBD. Indeed, from a policy perspective, there is no logical reason why funding should be provided to Metro-North and the LIRR, but not NJT. The combined annual budgets of New York State and the MTA is approximately $240 billion. $50 million annually is couch cushion money for them.
It’s past time for New York and New Jersey to settle the action in a way that benefits both states.
Attorney John Reichman is a member of the EmpowerNJ Steering Committee and environment committee chair of the BlueWaveNJ.
