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Financing New York’s Regional Transportation System

Robert D. YaroPresident

Regional Plan Association

Greater Vancouver Livability Forum

June 1, 2009Vancouver, British Columbia

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•Founded 1929

•Covers 31-county region

•Private, independent not-for-profit

• Professional staff of urban planners, economists, architects, transportation planners

•Distinguished board of directors

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Connecticut

New York

New Jersey

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The Region’s Transportation System

•Over 100 years old.

•2,250 kilometers of rail

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RPA’s Three Regional Plans

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Building A Polycentric Region

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New York Metropolitan Transportation Authority (MTA)

Almost $70 billion spent to restore the system since the 1980s

Over 9 million rides a day

RPA’s 3rd Plan proposed major system expansion now underway, including 4 “megaprojects,” to meet the region’s mobility needs through 2040.

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MTA Revenues -- System Wide

9%

42%

13%5%

31%

State and Local SubsidiesFarebox RevenueToll RevenuesOtherDedicated Taxes

NYC Transit farebox operating ratio: 54% -- highest in North America

Several dedicated taxes are highly cyclical.

Decisions to fund capital plans from farebox in 90s dramatically increased debt service

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Empire State Transportation Alliance

Transportation advocates in front of New York City Hall

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PlaNYC 2030: New York City’s

Plan forA Greener, Greater New York, containing 127 separate initiatives, including Congestion Pricing, to promote the city’s long term sustainability. 

PlaNYC – New York’s Sustainability Plan launched Earth Day 2007

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• Campaign for NY’s Future – a coalition of 150 business, civic and community groups to support adoption of PlaNYC Recommendations– Rallies and Events– Environmental

Justice Town Hall Meetings

– Community Engagement and organizing

– Advocacy

Campaign to Advocate for Plan’s Recommendations

Nos Quedamos will be hosting a

Bronx Meeting on PlaNYC 2030

Nos Quedamos will be hosting a

Bronx Meeting on PlaNYC 2030

Location: 754 Melrose Avenue Bronx, New York 10451Date: 10/25/07Time: 5:00 pm - 7:00pmContact: Anna Vincenty

718-585-2323

Location: 754 Melrose Avenue Bronx, New York 10451Date: 10/25/07Time: 5:00 pm - 7:00pmContact: Anna Vincenty

718-585-2323

“PlanNYC 2030: What it Means for the Bronx”

Panelists on Clean Air, Congestion Pricing, Parks, Housing, Health, Transit, more

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Congestion Pricing Meets Albany

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Lessons Learned: Congestion Pricing

•Didn’t do the preparation needed

•Rushed campaign from April launch to June end of legislative session.

•Personal politics and Albany.

•“Where’s the crisis?”

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Greening Mass Transit & Metro Regions: A Synopsis of the Final Report of the Blue Ribbon Commission on Sustainability and the MTA

January 2009

MTA Sustainability Plan

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Mass Transit

OtherTransportation

Total Regional GHG Emissions

Mass Transit

OtherTransportation

More TransitLess Transit

Source: T. Papandreou, LA Metro

Transit’s Role in Carbon Avoidance

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•Capture significant share of new regional VMT by 2030

•Promote 2/3 of new development near transit stations

•Solve the “Last Mile” problem

Smart Growth/TODSmart Growth & Transit Oriented Development

17Source: Journal of Urban Planning & Development, March

2006

8,637

GHG per Person

3,341

Transportation

Building Operations

Materials

Kg CO2

equivalents/year

High DensityTransit-Oriented

Low DensityAuto-Oriented

GHGs per person

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2008: Ravitch Commission Plan

L-R: NY Governor David Patterson, Richard Ravitch, NYC Mayor Michael Bloomberg

Fares – Increase fares by Regional Consumer Price Index bi-annually.

Regional Mobility Tax -- Excise tax of .33 cents for every $100 dollars … imposed on employers

Bridge Tolls – for the free East River and Harlem River Bridges to match existing tolled MTA facilities

Raises $2.1 billion annually

Regional Mass Transit ImprovementsAdditional bus service improvements put in place before tolls BRT network should be expanded and implemented at a faster pace

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Ravitch Plan Meets Albany

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May 2009: Financing Secured

Fares – Subway fares up to $2.25 from $2.00; Commuter rail tickets and tolls up 10%

Regional Mobility Tax -- Excise tax of .33 cents for every $100 dollars … imposed on employers

Fees and Surcharges (apply only in MTA Region) -- 50¢ surcharge on taxi cab fares

-- $25 surcharge on vehicle registration-- $2 annual fee on drivers license -- 5% tax on car rentals

Raises $2.2 billion annuallyNo New Bridge Tolls, but large budget gap remains

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Final Thoughts

•No permanent fixes; financing transit is a reoccurring challenge.

•New York goes farther than most regions to cross-subsidize between highways and transit

•A growing region must grow its transit system

•Must find a way to capture the value created by transit to help finance the system.

Auto-free Broadway unveiled May 25, 2009 in Times Square