NY, NJ officials face off over cost of commuting

Matthew Fazelpoor//August 22, 2022//

NY, NJ officials face off over cost of commuting

Matthew Fazelpoor//August 22, 2022//

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Traffic congestion in New York City
New York City traffic. – CITY OF NEW YORK

The Metropolitan Transportation Authority released a long-awaited environmental review earlier this month about the proposed Central Business District Tolling Program for Manhattan, commonly known as . U.S. Rep. Josh Gottheimer, D-5th District was not impressed. “Every single scenario that the MTA presented raises fees and taxes on hardworking Jersey families and commuters; every single scenario,” Gottheimer told NJBIZ.

Under the plan, which has been subject to debate and criticism on both sides of the Hudson River, drivers would pay higher tolls during peak hours to enter the Central Business District, defined as the area south of 60th Street. The assessment examines different scenarios, with numerous combinations of potential discounts, crossing credits and exemptions, for drivers crossing into Manhattan. For cars, the extra charges would range from $9 to $23 while trucks would face fares between $12 and $82.

The goals are to reduce traffic in Manhattan and boost revenue for the MTA.

“The tremendous detail included in this assessment makes clear the widespread benefits that would result from central business district tolling,” said MTA Chair and CEO Janno Lieber. “Bottom line: congestion pricing is good for the environment, good for public transit and good for New York and the region. We look forward to receiving public feedback in the weeks ahead.”

But Gottheimer, who represents a district in North Jersey with many commuters, called the plan outrageous and said it would be insane to whack Jersey drivers with such a fee.

“This a regressive tax on families to the tune of $5,000 a year or $23 a day,” Gottheimer explained. “And I don’t understand it from New York’s perspective, when they’re trying to get 290,000 daily commuters from Jersey into New York City back to work and supporting their local businesses, why they would do this.”

New York is pushing ahead with the idea, which was delayed for several years on the federal level. And the final plan will require federal approval after public hearings and comments. – CREATIVECOMMONS.ORG

So Gottheimer has gone on the offensive against the plan, which New York officials are hoping to have in place by the end of 2023.

Earlier in August, he joined state Sen. Joe Lagana, Assemblyman Chris Tully and Assemblywoman Lisa Swain – all Democrats representing the 38th Legislative District, which includes parts of Bergen and Passaic counties – to push the “Stay in Jersey” bill, which would offer incentives to New York businesses to open regional offices or hubs for New Jersey-based employees.

“Just read MTA spelled backwards and it tells you exactly how New York looks at New Jersey right now: as their personal ATM,” said Gottheimer. “The ‘Stay in Jersey’ bill will establish a new incentive program to provide New York businesses with tax credits for expanding business operations into New Jersey – closer to the primary residence of existing Jersey full-time employees – to help them avoid having to drive into the city and get whacked by the Congestion Tax.”

The lawmakers also say the measure would create an opportunity for New Jersey to capitalize.

“Encouraging people to live in New Jersey isn’t difficult – our cities are some of the most diverse in the country, boasting a wide variety of the best cuisines, our open spaces and preserved lands span the state and include over 100 miles of beaches to enjoy in the summer, and our schools are the best in the nation,” said Swain. “It’s our task now to encourage businesses to recognize the benefits of being in New Jersey, and to get the ball rolling on their relocation efforts.”

Tully said his team has been working closely with Gottheimer’s staff to address this issue.

“What came out of these conversations was an exciting plan to incentivize businesses to relocate to New Jersey, creating hubs for people to work, live, and do business right in their communities,” said Tully.

“It’s no secret that working close to home benefits not only residents themselves, but is a boon to local economies,” said Lagana. “Business hubs spur economic development and investment in our mom-and-pop shops, local eateries and markets, and boutique downtown stores.”

Gottheimer believes that between the costs for tolls, parking and gas, plus the stress of traveling into the city and missed time with family and loved ones, the bill could provide many benefits for New Jerseyans. “The bright side is they’re basically telling us to stay in Jersey,” said Gottheimer. “So, I think we should provide an opportunity for those businesses to get incentives to do so. And as far as I’m concerned, I think it would be a great win for Jersey, our businesses, our restaurants, our stores. It’s great for our downtowns and all our businesses.”

Last week, Gottheimer held a news conference in Manhattan with New York U.S. Rep. Nicole Malliotakis, a Republican whose district includes Staten Island and southern Brooklyn, in a bipartisan effort to introduce legislation requiring a full audit of the MTA’s finances. Malliotakis’ constituents would also be affected by the congestion pricing.

U.S. Rep. Josh Gottheimer, Stay in Jersey
“Just read MTA spelled backwards and it tells you exactly how New York looks at New Jersey right now,” U.S. Rep. Josh Gottheimer said, referring to the transit agency. – OFFICE OF U.S. REP. JOSH GOTTHEIMER

“The fact that the city, state, and MTA are proposing a congestion tax to make up for lost revenue after they’ve received billions in federal assistance and opportunities to apply for matching grants through the federal infrastructure bill is absurd and goes to show how mismanaged the authority is,” Malliotakis said.

Gottheimer called the MTA budget a “black hole.”

“This is really just a cash grab from the MTA,” he said. “So, before they receive another nickel, we should get to the bottom of their finances and what they’re doing with all this money.”

During a recent appearance on WNYC’s The Brian Lehrer Show, Lieber addressed some of the criticisms of the plan, and accused Gottheimer of focusing on the high end of the fare ranges.

“Everyone chooses the number that is more pleasing or more alarming to benefit and support their case,” said Lieber. “We see a lot of these congressmen who are yelling and screaming about double taxation, and I haven’t heard from the congressman from Bergen County with an offer to give New Yorkers a discount or a credit on the Garden State Parkway when they pay tolls to go to New Jersey. Shouldn’t, by this logic, they get a discount on the Garden State Parkway or the turnpike?”

Gov. Phil Murphy, though, backs Gottheimer’s efforts and on his recent “Ask Governor Murphy” Show on News 12 New Jersey, he gave the congressman a shout-out for “pounding away on this.”

Murphy said he does not disagree with congestion pricing, in theory. “If it’s done right, I think it probably is a good idea,” Murphy said during that broadcast. “But you can’t have it where Jersey commuters through the Lincoln or the Holland are treated in one way and commuters over the GW are treated in another way. It’s just not going to happen.”

While the governor is optimistic about a possible resolution, he said the state is prepared to fight. “If we have to, we’ll take the steps that we don’t want to take, but we will take to protect our commuters,” said Murphy. “We’re not going to take it out on the hide of New Jersey commuters. That’s just not going to happen.”

Gottheimer does not believe the scenarios are being thought through fully and believes it is inexplicable from New York’s perspective. “I feel like, at some point, they’re going to wake up and realize this is a ridiculous plan,” said Gottheimer. “If that’s what they want, we’ll stay in Jersey and save a fortune.”

But New York is pushing ahead with the idea, which was delayed for several years on the federal level. And the final plan will require federal approval. The next steps, though, are public comments and public hearings.

The first in a series of virtual hearings will be held Aug. 25, 5 p.m. to 8 p.m. There will be five additional hearings over that week. The public can submit comments via email to [email protected] and online. Click here for a schedule of the virtual public hearings.

“While the environmental assessment is under review by New Jersey state agencies and comments will be submitted where necessary and appropriate, the Murphy Administration will not support a double tax of New Jerseyans that provides no direct relief for our state’s commuters,” a Murphy press official told NJBIZ in a statement.

“It’s going to be a constant battle and a constant fight,” said Gottheimer. “We’re not going to back down until we get across the finish line here.”