Jump to content

User:Kew Gardens 613/sandbox 16

From Wikipedia, the free encyclopedia
< User:Kew Gardens 613

This is an old revision of this page, as edited by Kew Gardens 613 (talk | contribs) at 01:37, 10 June 2024 (add). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Proposed postponement

Late in the evening of June 4, 2024, Politico and The New York Times reported that Governor Hochul was considering delaying the implementation of congestion pricing, which had been planned for June 30, out of concern that it would hurt Democrats in competitive races for the House of Representatives in the New York suburbs. One source cited by Politico stated that the move was in response to worries raised by Hakeem Jeffries, the House minority leader.[1][2]

Hochul also reportedly believed that the timing of congestion pricing was not ideal, and feared that its implementation would hurt the full recovery of Manhattan's central business district. The Times reported that Hochul was considering proposing a tax on New York City businesses to fill the $1 billion a year that would have been raised by congestion pricing, though the State Legislative session had just two days left.[1]

Shortly before noon on June 5, Governor Hochul's office put out a six-minute recorded video address in which she announced an indefinite pause in the implementation of congestion pricing. Hochul cited concerns that the program would jeopardize the economic recovery of Manhattan, and noted high inflation, stating that the congestion charge would especially hurt hard-working middle-class New Yorkers, and noting high vacancy rates in Manhattan office buildings. She said that the State had set aside funds to help address the gap in revenue from the program. Hochul said that congestion pricing was enacted pre-pandemic with lower crime and people working in the office five days a week. Hochul also insisted that she remained committed to investing in public transit.[3]

The move was a major reversal by Hochul, who had previously expressed strong support for congestion pricing, last doing so publicly just two weeks prior on May 20 at the Global Economic Summit in Ireland.[4]

According to Crain's New York, Hochul had been worried about the political implications of the implementation of the program for several months and had been looking for cover. According to one elected official, there were rumors during the end of negotiations over the state budget in the spring that she might try to delay implementation. Political insider pointed to recent polls that found that about two-thirds of voters in New York opposed congestion pricing. Hochul had spoken with officials at the White House, including President Joe Biden, about postponing the plan. Hochul had notified the White House and Jeffries of her decision in the days prior to her announcement.[5]

State lawmakers[6] and MTA Board members were not briefed beforehand about the Governor's decision.[7]

Hochul's decision was strongly condemned by environmentalists, transit advocates, and by business groups that generally supported her, including the Partnership for New York City, and the New York Building Congress.[6][8]

Business groups were opposed by the Governor's proposal to further increase the payroll tax in New York City.[8]

A protest outside the New York City offices of Governor Hochul was organized by the Riders Alliance on June 5, and attended by groups such as the New York Building Congress, Open Plans and Transportation Alternatives.[9][8][10]

A spokesperson for Jeffries denied that he played a role in Hochul's decision, but said that he supported a temporary pause in the implementation of congestion pricing, and Mayor Eric Adams said he would stay aligned with the Governor's position.[11] Per reporting from multiple outlets, she was also seeking a hike in the MTA payroll tax for businesses in New York City.[3]

The MTA indefinitely postponed a set of webinars, set to begin with one at 11 AM on June 5, that were intended to inform the public about congestion pricing.[12]

MTA Chairman and CEO Janno Lieber was informed of the Governor's decision shortly before the news publicly broke.[13] The decision caught MTA leadership by surprise.[14]

On June 5, attorneys for the MTA submitted court notifications in lawsuits against congestion pricing that, with the pause, they no longer expected congestion pricing to start by June 30.[15]

The Governor's proposed increase of the payroll tax did not go well with the State Senate.[13]

Sources: https://docs.google.com/spreadsheets/d/1CCvtmEXqTwUpYBiz5e5NPx7ktklsAlBFzCzD-eimbas/edit?usp=sharing


Hochul had voiced frustration for months that the plan was an artifact of the administration of former Governor Andrew Cuomo, and that she never believe it was correctly structured. Internal discussions about pausing congestion pricing significantly picked up right after the visit to the White House.[16]

Congestion pricing was seen as a political vulnerability that could harm Democrats' efforts to take control of the House in November elections.[16]

News outlets such as the New York Times believed that Hochul's decision would have to go a vote of the MTA Board.[17]


On June 6, State Senate Finance Committee Chair Liz Krueger said she was not aware of what the $1 billion reserved to backstop congestion pricing was referring to or where it was coming from.[18]

On June 6, Gothamist reported more details on the Governor's proposed increase in the payroll tax for New York City businesses. The proposal would have increased the tax on businesses with payroll expenses of more than $1.75 million a year from 0.6 percent of expenses to 0.825 percent of expenses. This would have been the second increase in that tax in New York City in two years. State Senate Democrats were not particularly supportive of the Governor's plan, though Assembly Democrats seemed more open to a deal.[19] The proposal was also dead in the Assembly by the late afternoon.[20]

It was believed that the MTA Board could potentially override Governor Hochul's order since, according to the Public Authorities Reform Act of 2009, board members had an explicit fiduciary duty to the authority, though there was no precedent for board members going against the wishes of a governor on such an important issue.[19]


Thursday June 6 Funding plan PMT?/IOU

Friday June 7 IOU/Gov press conference/MTA pause confirm


Mention

Rationale for pause

Jeffries

Hochul-growing concern leading up

Betrayal-her past statements

Impact state legislative session

State economy NY-reason-remote work, inflation, hurt businesses

Public opposition

Webinar cancelled

MTA response

Timing-pause

Whether pause permanent

Internal MTA politics-Janno

Whether MTA Board had a role

Political support-for/against pause

Potential lawsuits

Legal authority for pause

Diner-Hochul-cite

Impact capital program

Bond rating-agency

Hochul-silence

Hochul proposed delaying the congestion toll's implementation indefinitely in early June 2024,[21] in what MTA members described as a sudden move.[22][23] Hochul cited concerns over New York City's economy,[24][25] but media sources cited worries over the upcoming 2024 United States elections as the reason for the delays.[23][24] The MTA had already spent $555.8 million on congestion pricing equipment[26] and earmarked $15 billion of congestion-toll revenue for transit improvements.[27] Congestion-pricing advocates said the lack of congestion-toll revenue would negatively affect the transit system,[28] and they suggested that the MTA board could vote to overrule Hochul's announcement.[29] To cover the lost revenue, Hochul proposed raising the city's payroll tax for business owners,[30] but local business leaders opposed the proposed payroll tax increase.[31] New York lawmakers adjourned their 2023–2024 legislative session without agreeing on an alternate source of revenue for the MTA.[32]

  1. ^ a b Rubinstein, Dana; Ashford, Grace (2024-06-05). "Hochul Pushes for Congestion Pricing Delay in Last-Minute Reversal". The New York Times. ISSN 0362-4331. Retrieved 2024-06-09.
  2. ^ Goldenberg, Sally; Coltin, Jeff; Reisman, Nick (June 4, 2024). "Hochul considering congestion pricing delay amid concerns from Democratic leaders". Politico. Retrieved June 9, 2024.
  3. ^ a b Campbell, Jon; Nessen, Stephen (2024-06-05). "Gov. Hochul indefinitely pauses NYC congestion pricing, weeks before tolls were set to launch". Gothamist. Retrieved 2024-06-09.
  4. ^ Elstein, Aaron (June 9, 2024). "Kathy Hochul falls out of love with congestion pricing". Crain's New York Business. Retrieved June 9, 2024.
  5. ^ Ashford, Grace (2024-06-05). "Hochul Halts Congestion Pricing in a Stunning 11th-Hour Shift". The New York Times. ISSN 0362-4331. Retrieved 2024-06-09.
  6. ^ a b Garber, Nick (June 5, 2024). "Hochul was 'looking for cover' on congestion pricing, insiders say". Crain's New York Business. Retrieved June 9, 2024.
  7. ^ "Congestion pricing in New York City indefinitely postponed". ABC7 New York. 2024-06-05. Retrieved 2024-06-09.
  8. ^ a b c David, Greg (2024-06-05). "Business Leaders 'Furious' at Hochul Reversal on Manhattan Congestion Charge". THE CITY - NYC News. Retrieved 2024-06-09.
  9. ^ Ley, Ana (2024-06-05). "Supporters of Congestion Pricing Are Furious at Hochul's 'Betrayal'". The New York Times. ISSN 0362-4331. Retrieved 2024-06-09.
  10. ^ "Congestion Pricing Advocates Demand Answers As Hochul Betrays Them ... And Herself - Streetsblog New York City". nyc.streetsblog.org. 2024-06-06. Retrieved 2024-06-09.
  11. ^ "Hochul: Congestion pricing paused 'indefinitely'". ny1.com. Retrieved 2024-06-09.
  12. ^ Anderson, Renee (2024-06-05). "NYC congestion pricing webinars postponed after start date indefinitely delayed - CBS New York". www.cbsnews.com. Retrieved 2024-06-09.
  13. ^ a b Marshall, Randi (June 5, 2024). "Congestion pricing fallout: MTA's Janno Lieber silent". Newsday. Retrieved June 9, 2024.
  14. ^ "Gov. Hochul still has no answers on how to make up loss of congestion pricing revenue". New York Daily News. 2024-06-06. Retrieved 2024-06-10.
  15. ^ Spivack, Caroline (June 5, 2024). "MTA mum on congestion pricing delay bombshell". Crain's New York Business. Retrieved June 9, 2024.
  16. ^ a b "Hochul halts NYC congestion pricing in dramatic about-face". New York Daily News. 2024-06-05. Retrieved 2024-06-10.
  17. ^ Stack, Liam (2024-06-05). "What Happens Now That Congestion Pricing Has Been Halted". The New York Times. ISSN 0362-4331. Retrieved 2024-06-10.
  18. ^ "Two Huge Questions About 'Gridlock Gov.' Hochul's Congestion Pricing Delay - Streetsblog New York City". nyc.streetsblog.org. 2024-06-06. Retrieved 2024-06-10.
  19. ^ a b Campbell, Jon; Jun 6, Stephen NessenPublished; 2024Share (2024-06-06). "Gov. Hochul's congestion toll flip-flop spurs mad scramble at NY Capitol". Gothamist. Retrieved 2024-06-10.{{cite web}}: CS1 maint: numeric names: authors list (link)
  20. ^ Garber, Nick (June 6, 2024). "Hochul's business tax proposal falters in Albany after congestion pricing pause". Crain's New York Business. Retrieved June 9, 2024.
  21. ^ "Congestion Pricing in New York City Indefinitely Postponed, Official Says". ABC7 New York. June 5, 2024. Retrieved June 5, 2024; Ashford, Grace (June 5, 2024). "Hochul Halts Congestion Pricing in a Stunning 11th-Hour Shift". The New York Times. ISSN 0362-4331. Retrieved June 5, 2024.
  22. ^ Liebman, Samantha (June 6, 2024). "MTA Board Caught off Guard by Congestion Pricing Pause". Spectrum News NY1. Retrieved June 8, 2024.
  23. ^ a b Hicks, Nolan (June 6, 2024). ""I Don't Think There's a Plan B"". Curbed. Retrieved June 8, 2024.
  24. ^ a b Reisman, Nick (June 5, 2024). "House Democrats Feared a New York City Toll Plan. Hochul Reversed It". POLITICO. Retrieved June 6, 2024; McKenna, Chris (June 5, 2024). "NYC congestion pricing: Kathy Hochul looks to delay start. Here's why". lohud.com. Retrieved June 6, 2024.
  25. ^ Chen, Stefanos (2024-06-07). "Is New York's Economy Too Fragile for Congestion Pricing? Many Say No". The New York Times. ISSN 0362-4331. Retrieved 2024-06-08.
  26. ^ Simko-Bednarski, Evan (June 5, 2024). "No One Knows Fate of Pricey Cameras After Congestion Pricing Put on Ice in NYC". New York Daily News. Retrieved June 7, 2024.
  27. ^ Ley, Ana; Hu, Winnie; Chen, Stefanos (June 6, 2024). "Congestion Pricing Delay Leaves the M.T.A.'s Budget in Limbo". The New York Times. ISSN 0362-4331. Retrieved June 7, 2024; Brachfeld, Ben (June 6, 2024). "Congestion pricing: $15 billion in transit improvements in jeopardy after Hochul halts Manhattan toll plan". amNewYork. Retrieved June 7, 2024.
  28. ^ Rincón, Sonia (June 5, 2024). "Congestion Pricing NYC Delay Deals Stunning Blow to the City and MTA Riders, Advocates Say". ABC7 New York. Retrieved June 5, 2024; Ley, Ana (June 5, 2024). "Supporters of Congestion Pricing Are Furious at Hochul's 'Betrayal'". The New York Times. ISSN 0362-4331. Retrieved June 5, 2024.
  29. ^ Spivack, Caroline (June 6, 2024). "Could the MTA Board Overrule Kathy Hochul on Congestion Pricing?". Crain's New York Business. Retrieved June 8, 2024.
  30. ^ Kaske, Michelle; Dunn, Danielle Muoio (June 6, 2024). "NY Lawmakers Weigh Business Tax Hike After Hochul Toll Reversal". Bloomberg Industry Group News. Retrieved June 7, 2024; "Hochul pushes for tax increase after nixing 'congestion pricing' toll in NYC". syracuse. The Associated Press. June 7, 2024. Retrieved June 7, 2024.
  31. ^ David, Greg (June 5, 2024). "Business Leaders 'Furious' at Hochul Reversal on Manhattan Congestion Charge". The City. Retrieved June 6, 2024.
  32. ^ Lisa, Kate (June 6, 2024). "Congestion Pricing Reversal Causes End-Of-Session Roadblocks in Albany". spectrumlocalnews.com. Retrieved June 8, 2024; Ashford, Grace; Fahy, Claire (2024-06-08). "N.Y. Lawmakers End Session Without Replacing Congestion Pricing Revenue". The New York Times. ISSN 0362-4331. Retrieved 2024-06-08.
Retrieved from "https://en.wikipedia.org/w/index.php?title=User:Kew_Gardens_613/sandbox_16&oldid=1228215302"