Proposed Toll Hikes Unfair, Could Reduce Vital MTA Funding Source
October 25, 2010
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Motorists already overburdened by MTA fees and surcharges while roads and bridges crumble
(Garden City, NY) – As the MTA board prepares to vote on a proposed increase in bridge and tunnel tolls, the fifth in seven years, AAA New York calls attention to the unfair number of fees and surcharges motorists already pay to support the cash-strapped Authority. “Vehicle owners currently pay a staggering amount of money to support the MTA, with additional funds diverted from motorist-related needs to cover the fiscal mismanagement of the state and cash-strapped authority, all while our roads and bridges deteriorate” said Robert Sinclair Jr., spokesman for AAA New York. New fees to bail out the MTA have already been imposed on drivers, and, money that was supposed to be used to build and maintain roads, bridges and tunnels has been diverted to the State’s general budget. Examples include:
· The MTA annually collects approximately $1.3 billion in toll revenue with one-third, about $470 million, shifted to subsidize mass transit.
· A $50 MTA vehicle registration surcharge imposed on the 5.6 million vehicles in the 12 county Metropolitan Commuter Transportation District, totaling more than $281 million, on top of a state-wide 25% registration fee increase, took effect in September 2009.
· The petroleum business tax at 16.3 cents on every gallon of gas sold in New York State, 85% of which supports the MTA, totals more than $791 million.
· The Dedicated Highway and Bridge Trust Fund, the most egregious misuse of motorist money. According to a report by the state Comptroller, $33 billion has been collected since 1991 and only one-third used on capital construction projects.
Using the newly proposed toll hike figures reported in the Daily News, AAA New York has calculated that a motorist using cash on a daily commute on one of the MTA’s major bridges or tunnels would pay an additional $500 per year, raising their commuting costs to $3,250 annually. E-Z Pass customers would see a $115 annual increase to a total of $2,400 per year.
Vehicle registrations in New York City fell by nearly 180,000 after toll hikes in 2003. With many motorists struggling financially, toll hikes could lead to a similar reduction, and with it, a loss of motorist- generated revenue to the MTA.
All this comes as New York’s road and bridge infrastructure continues to deteriorate. A 2005 report from the State Advisory Panel on Transportation Policy for 2025 rated one-third of the state’s lane miles in fair or poor condition and one third of bridges as structurally deficient or functionally obsolete. Conditions have only worsened since then. Last month, The Road Information Program in Washington, D.C., said that 53% of New York City’s roads are in poor condition, resulting in an extra $640 in yearly vehicle operating costs due to increased frequency of needed maintenance, tire wear and vehicle deterioration and depreciation. In its 19th annual Highway Report, the Reason Foundation found that New York spends nearly $90,000 per mile to maintain its highways, 46th worst in the nation, due to bloated administrative costs. The best, Virginia, spends only $6,370 per highway mile.
“We call on the MTA Board to resoundingly vote “no” on the proposed toll hike, not only to prevent a further financial burden on motorists, but to preserve the most important revenue stream the MTA has,” Sinclair said.
AAA New York provides automotive, travel and financial services to 1.5 million members in New York City, Nassau, Suffolk, Westchester, Rockland, Orange, Sullivan, Ulster, Dutchess, Putnam, Herkimer, Chenango, Delaware, Schoharie, Otsego and Oneida counties.
Posted by News LI Editor · Filed Under Politics
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