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Tuesday, March 16, 2010   54º F

Updated 12/05/2008 12:04 AM

State Commission Recommends Bridge Tolls, Payroll Taxes

By: NY1 News

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The state commission charged with finding new sources of revenue for the MTA released its report Thursday, recommending tolls on bridges coming into Manhattan and a payroll tax for everyone in the region.

Led by former MTA Chairman Richard Ravitch, the commission announced its recommendations with Governor David Paterson and Mayor Michael Bloomberg at his side.

"The governor knows that real, pragmatic solutions for our regional transportation needs are not always easy to settle upon or adopt," said Ravitch. "And there are not easy answers in this report."

Richard Ravitch To Appear On "Inside City Hall"

Former MTA Chairman Richard Ravitch will appear on "Inside City Hall" tonight to discuss his suggestions for new MTA revenue. The program airs at 7 p.m. and 10 p.m.

Instead of raising fares by the proposed 23 percent, which the MTA had earlier discussed, Ravitch suggests an 8 percent increase on fares.

The plan also allows for automatic inflation-adjusted fare increases every two years without public hearings.

"The political circus that surrounds the fare increase process and the inordinate pressure it puts on people who run for office produces distorted results," said Ravitch.

But the report also recommends implementing a cashless toll on the East River and Harlem River crossings. In the past, East River tolls never got past the proposal stage. With the economy in recession and the MTA's $1.4 billion budget deficit, lawmakers may be forced to give in to the idea.

"The commission has provided proposals that will relieve much of that deficit and also provide funding for the capital investments that must be made to keep the system running safely and reliably," said Paterson. "I applaud the commission for finding solutions that rely on the entire region sharing the burden. The economic well-being and standard of living of the region will rise or fall with the health of the transit system.”

Ravitch recommended that the tolls, which could raise about $600 million annually, only be instituted if the proceeds go toward increasing bus services, which the committee found to be a major weakness of the transit system.

Ravitch Proposal Summary

- 8-percent fare hike
- Mobility/Payroll tax
- Tolls on East River and Harlem River crossings

Drivers who spoke with NY1 Thursday morning were overwhelmingly opposed to any tolls on the East River and Harlem River bridges. It was not only the cost that irked the drivers, but also the prospect of having more congestion on their way to work.

"I'm not crazy about it. Too many people can't afford it," said one driver. "I think with the economy it's not a good time to do it now."

"I think it's a terrible idea," said another. "I hope the mayor does not do it."

"It's ridiculous," said a third. "You're going to have more traffic and I'm not going to be able to be on time to work anymore. You already have enough traffic as it is."

However, subway riders were bigger proponents of the idea of bridge tolls over fare hikes.

"I'd rather that people pay to take the bridges because it doesn't affect everybody," said one subway rider.

"I like the idea of people coming in by any other means, besides mass transit, to be charged," said another. "That's kind of fair. That makes sense to me."

A Quinnipiac survey released Thursday shares commuters’ concerns, by saying voters from all five boroughs oppose East River tolls by a margin of 68 percent to 28 percent.

Respondents outside of Manhattan were more upset, with 75 percent of Brooklyn voters saying tolls were a bad idea, as well as 73 percent of Queens voters, 71 percent of Bronx voters and 58 percent from Staten Island.

There is a margin of error of +/-2.5 percentage points.

Ravitch also proposed a new payroll tax on businesses in an effort to spread the burden among the largest possible group. The Mobility Tax, which would be levied on employer payrolls in the 12 commuter districts served by the MTA, is projected to raise $1.5 billion annually.

Any recommendations would need the support of the state Legislature, the mayor, and the governor.

Both Assembly Speaker Sheldon Silver, who killed congestion pricing, and the Democratic Leader of the State Senate Malcolm Smith said Thursday they will review the recommendations, adding that they do not want straphangers to shoulder the burden alone.

It is unclear what role the City Council will play, but that has not stopped some council members from opposing any new tolls.

”This is telling everyone whether you have transit available to you or not that you'll have to pay to get across the bridge,” said Democratic Brooklyn Councilman Simcha Felder.

The agency is also looking to find ways to fund its next five-year capital program, which begins in 2010.