Governor. Kathy Hochul defended her decision to stop congestion pricing hours after state Senate Democrats said they would leave Albany without closing the funding gap left in her absence.
In her first public appearance since announcing her intention to reverse her plan, Ms. Hochul reiterated that now is not the time to add to the burden on New York City’s economy.
“We thought inflation would be lower,” she said at a news conference Friday evening. “We thought people would feel safer taking the metro. Yes, yes, we are coming back, but we cannot afford a setback.
At the press conference, Ms. Hochul was pressed on when she changed her mind on congestion pricing and who she had spoken to beforehand.
Although she declined to provide details about the timing of her decision, she described conversations she said she had with ordinary New Yorkers at dinner parties, citing three diners from Manhattan’s East Side .
His decision leaves a billion-dollar hole in the Metropolitan Transportation Authority’s budget, jeopardizing planned projects and raising serious questions about the future of public transportation in the nation’s largest city.
Sen. Andrea Stewart-Cousins, the majority leader, told reporters Friday evening that her caucus had not been able to agree on any of the budget proposals presented in the final hours of the session and would step down to the year without a legislative solution.
She said they were “trying to find a way” to both ease congestion and provide funding for the authority, which oversees the city’s subway, buses and some commuter rail lines.
Late Friday evening, the MTA said it was evaluating changes to its capital program in light of the delay. Projects to update signage, make stations accessible to people with disabilities, and switch to electric buses would most likely be “deprioritized to protect and preserve the basic operation and functionality of this more than 100-year-old system” , according to a statement from two senior MTA officials.
The senators’ announcement followed two days of frantic negotiations after Ms. Hochul said she wanted to suspend the toll project “indefinitely” over concerns it could hamper New York State’s economic recovery after the coronavirus pandemic.
The congestion pricing plan, which was set to take effect June 30, would have charged most drivers $15 to enter Manhattan’s central business district south of 60th Street in an effort to reduce congestion. pollution and traffic and generate $1 billion a year in revenue for the struggling authority
During her appearance Friday evening, Ms. Hochul congratulated legislative leaders, saying she had worked closely with them during the session to achieve historic achievements in housing and social media regulations.
She said she got a commitment from leaders to take action on funding the authority at some point, even if no legislation was passed.
“We don’t need to take immediate action,” she told reporters, adding: “I’m ready to continue working with them from now on.”
A Senate spokesperson described the agreement somewhat differently, saying it was a commitment “to keep talking, I guess.”
Senate Democrats’ decision to leave without a replacement plan puts Ms. Hochul and the authority in a difficult position.
Without a new source of funding, not only are the authority’s planned investment projects in question, but also its day-to-day operations. And although Ms. Hochul controls the authority’s board, members have yet to formally vote to stop the plan. That has led supporters of congestion pricing to pin their hopes on the unlikely possibility that the council could defy the governor and proceed with the tolls as planned.
On Friday, Ms. Hochul dashed those hopes by telling reporters that she did not think a board vote was necessary. In its statement Friday evening, the MTA seemed to agree, saying that moving forward with the program would require consent from the state, city and federal governments, as well as Ms. L Hochul’s announcement had effectively withdrawn state approval.
Carl E. Heastie, the Democratic speaker of the Assembly, suggested earlier Friday that his members were open to various options, including a special session or revisiting the issue next year. “You have to make a decision about increasing revenue,” he said.
Lawmakers were blindsided when news broke Tuesday evening that Ms. Hochul had abandoned the plan she had so recently championed.
Shock quickly turned to anger as the consequences of the decision not to move forward with congestion pricing without a viable alternative for transit funding became clear.
“Derailing this important program at the last moment and asking the Legislature to propose an alternative funding mechanism in less than 48 hours is irresponsible and inconsistent with the principles of good governance,” said Senator Michael Gianaris, Deputy Majority Leader. A declaration.
Zellnor Myrie, a Democratic senator from central Brooklyn who is considering a run for mayor, criticized the governor for what he called “a profound lack of leadership,” particularly when the city’s transit system badly needs a financial injection.
And in an opinion piece for the Daily News, Sen. Liz Krueger, once an ally of Ms. Hochul’s, called the governor’s decision a “stunning error” that could violate state law.
The rhetoric signaled a deterioration in a once-celebrated relationship between Ms. Hochul and Democrats in the state Legislature. When Ms. Hochul took office in 2021, she worked to earn the trust of the new state, promising a new era of transparency and collaboration.
But a series of events since then – from Ms. Hochul’s repeated and public push to reverse the bail legislation signed by Parliament following the Senate’s refusal to confirm her first choice for the job of Chief Justice of the Court of Appeal have eroded much of the goodwill.
MS. Hochul suggested that the funding gap created by his congestion toll decision could be filled by a payroll tax on New York City businesses. But he currently opposes the plan, which would have shifted the financial burden from commuters to city residents.
Lawmakers and the governor’s advisers said Ms. Hochul had become increasingly concerned in recent weeks about New Yorkers’ disapproval of congestion pricing. A Siena College poll in April of about 800 registered New York voters found that 63 percent opposed the measure.
Another concern, she added, was the city’s recovery from the pandemic, which left office occupancy rates low. MS. Hochul has repeatedly said she would like to see New York City more vibrant, particularly in its commercial districts. Critics of congestion pricing have said the tolls will further deter workers from returning to the office.
Even as Ms. Stewart-Cousins announced that her members would leave Albany without action, she left open the possibility of returning for a special session.
“We will come back, if things warrant,” she said, adding: “We will continue to work on this issue because it is important.”
Ana Ley reports contributed.