The agency will lose hundreds of millions in projected congestion pricing revenue, forcing cuts to expansion plans.
As the ripple effects of the delay of New York City’s congestion pricing program become more clear, the head of the New York Metropolitan Transportation Authority (MTA) says the agency’s budget could take a hit of $800 million.
According to an article by Dan Zukowski in Smart Cities Dive, the loss could delay equipment purchases, raise maintenance costs for existing, aging equipment, and force MTA to pay thousands of employees from the operations rather than capital budget. “As part of the pause, if cash flow is required, the MTA would need to issue billion dollars of debt earlier in the financial plan than previously planned,” said MTA deputy CFO Jai Patel.
MTA CFO Kevin Willens added, “The impact of the congestion pricing pause has not yet been incorporated into the budget beyond 2024 under the assumption either that the pause will be lifted or the replacement revenue will be provided.” If the program is never implemented, the MTA’s future budget will be significantly impacted.
More on New York City’s congestion pricing program:
- Tri-State Economies to Lose Billions From Congestion Pricing Pause
- NYC Traffic Moving At Under 7 MPH, Congestion Pricing Remains Suspended
- New York MTA Upholds Pause on Congestion Pricing, Scales Back Projects
- Congestion Pricing Compromise?
- NYC Congestion Pricing Postponed Indefinitely in 'Stunning Reversal'
FULL STORY: New York transit chief paints grim picture for MTA without congestion pricing revenue
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