Environmental Defense Calls For Incentives To Offset Fare Hike

(6 March 2003 — New York)  Environmental Defense today called for the use of incentives, including expanded commuter choice and regional congestion pricing, to help offset the cost of the proposed transit fare hike, raise revenue and meet environmental goals.

“New York needs strong revenues to support transit investment, and New Yorkers need fair fares,” said Andy Darrell, Environmental Defense regional director.  “A fare hike alone is not the answer - the state and city should take full advantage of incentives like commuter choice and congestion pricing.”

One example of a commuter choice program is TransitChek, a federal tax incentive that can subsidize the cost of a transit pass.  With the TransitChek program, employees can save over $400 a year - by using pre-tax dollars to buy transit passes.  Everyone wins: employers pay less in payroll taxes, employees get a cheaper ride to work and the environment benefits when the incentive encourages people to leave their cars at home and use mass transit.

“TransitChek is used by only about 10-15% of the local workforce - expanding it to half the workforce would put hundreds of millions of dollars in New Yorkers’ pockets to offset the impact of any fare increase,” said Darrell.  “The state and city should launch a strong effort to get every local employer signed up for this program.”  Environmental Defense also called for expanded commuter choice incentives, like the parking cash-out programs, which are popular in other states.

Congestion pricing is another example of an underused incentive.  Today, traffic congestion costs the city over $7 billion a year in wasted time and fuel, and over 80% of the city’s added cancer risk from air pollution comes from car and truck emissions.  A comprehensive congestion pricing system would raise revenue to improve transportation choices, reduce traffic congestion and produce healthier air.

“By varying the cost of tolls according to congestion, drivers are given the incentive to leave their cars at home during rush hour.  On many East River bridges, driving into Manhattan is free, but taking a bus or train costs money - that’s the wrong incentive for the economy and for air quality,” said Darrell.  “The Hudson River crossings prove that congestion pricing works.  It’s time for a regional congestion pricing system, including the East River bridges.  Revenue from East River bridge tolls should support transit and bridge improvements that will benefit everyone and reduce the need for future fare hikes.”