Even after NYC congestion toll, MTA eyes new taxes and fees to plug $33B budget hole

Gov.Kathy Hochul and lawmakers are expected to weigh more taxes and fees to fill a massive $33 billion hole in the Metropolitan Transportation Authority’s budget even after hitting drivers with the controversial new Manhattan congestion toll.Hochul is rolling out “affordability” proposals ahead of her state of the state address next week and declared on Monday the state wouldn’t pass a budget “that we could not afford,” pledging she wanted to make sure “we don’t have to raise taxes.”But the cash-strapped MTA needs a massive infusion of cash to flaot its huge five-year capital plan totalling $68 billion, with even the governor’s budget director admitting fees and taxes will likely be part of the solution.“I think taxes generally will be part of the discussion,” Hochul’s budget chief Blake Washington told reporters in November.Hochul fully endorsed the capital plan last fall, and signed off on it despite questions about the unaccounted-for $33 billion needed to fund it.Hochul has promised not to raise income taxes in 2025, though that doesn’t include other taxes and fees like a payroll mobility tax she put forward last year when she put congestion pricing on pause.Hochul, on Monday, passed the buck and said it was up to the legislature to propose the new taxes.“This is in their court,” Hochul said.

“They’ve said that they’re going to find the funding sources, and I’ll continue working with them.”On Christmas Eve last month, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins formally objected to letting the capital plan take effect on Jan.1, effectively allowing them to negotiate its overall size and contents during state budget talks.In a joint letter, the leaders said they objected to the unfunded $33 billion of the plan.“The entirety of our point was that this plan would saddle the state with a $33 billion deficit with no actual funding,” state Senate Communications Director Mike Murphy tol...