New York Governor Kathy Hochul has faced criticism for postponing congestion pricing, a $15 toll on drivers entering lower Manhattan. The main reason for congestion pricing was to generate money for the Metropolitan Transportation Authority (MTA), which has the highest construction costs of any transit agency. Congestion pricing would have allowed the MTA to fund $15 billion in repairs and upgrades. However, the MTA's high costs are seen as unfixable without addressing the burdens affecting the agency. One potential opportunity for cost reduction is reforming the prevailing wage requirement, which currently requires companies working on public projects to match union pay and benefit levels. This prevailing wage requirement has been estimated to increase building construction costs for Buffalo-area municipalities and schools by 20 percent. Reforming how the prevailing wage is calculated could save the MTA billions of dollars and make renovations and repairs in Western New York less expensive. By addressing the MTA's inefficiencies head-on, it may be possible to protect upstate New York from having to pay more. [5cdaa305]
In a recent development, the MTA approved a $19.9 billion operating budget for 2025, which includes a planned 4% fare and toll increase set to take effect in August 2025. The budget supports continued growth and covers labor costs, operating expenses, and $2.5 billion for debt payments, as the MTA owed $46 billion as of December 11, 2024. The budget also allocates funds for a $1.26 billion contract to procure 435 new subway cars, aimed at replacing 40-year-old models, with deliveries expected to start in 2027. However, legal challenges to the congestion pricing program, set to begin on January 5, 2025, charging $9 for most passenger cars entering the tolled district, may delay its implementation. Average weekday subway ridership currently stands at 80% of 2019 levels, indicating a gradual recovery in public transit usage. [06f70628]
The recent report by INRIX highlights the negative impact of traffic congestion on economic growth in the United States. According to the report, U.S. drivers lost a total of 42 hours to traffic congestion in 2023, equivalent to a full work week. This represents a significant increase from the previous year and underscores the urgent need for effective solutions to address traffic congestion. The report estimates that the time lost in traffic cost drivers a total of $733, contributing to a staggering $70.4 billion in congestion-related expenses for the country. The findings also indicate a 15% increase in congestion costs compared to 2022.
The report further reveals that transit ridership in the U.S. has declined by 28% since 2019, but experienced a 15% growth compared to 2022. This suggests that while more people are opting for public transportation, the overall impact on reducing congestion remains limited.
Globally, 78% of urban areas experienced increased traffic delays in 2023. In the United States, New York City ranked as the most congested city, with drivers losing a staggering 101 hours to traffic jams. Chicago followed closely behind, with drivers losing 96 hours. The congestion in Chicago alone cost the city $6.1 billion in 2023.
The report from INRIX underscores the importance of investing in infrastructure, improving public transportation, and implementing smart traffic management systems to alleviate congestion and support economic growth. Combining these efforts with potential reforms to the prevailing wage requirement in the MTA's congestion pricing battles could lead to significant cost savings and more affordable renovations and repairs in Western New York. [2b02c0dc]
In Chicago, transit reform has been a topic of discussion. A bill has passed both the Illinois House and Senate that will generate $300 to $400 million a year for local governments, including $95-127 million for the Regional Transportation Authority (RTA). The bill aims to capture sales tax revenue from more out-of-state retailers and in-state retailers who ship to Illinoisans in out-of-state locations. While this new funding is not enough to cover the $730 million deficit that northeastern Illinois' mass transit agencies are facing starting next fiscal year, it is seen as a decent start. The deficit is projected to rise to $1.2 billion by FY31, according to the Chicago Metropolitan Agency for Planning. The Chicago Transit Authority (CTA) and Chicago Mayor Lori Lightfoot have been involved in a dispute over a pilot project to cut South Side Metra fares to CTA levels and increase train service on the South Side and south suburbs, as well as increase the frequency of some Pace bus service. The CTA believed the proposal would reduce its revenues and, as a result, refused to provide low-cost transfers between the lines and prevented riders from using their CTA Ventra cards for Metra fares. The Chicago Metropolitan Agency for Planning has suggested two models for transit agency consolidation, one of which is integrating the RTA and the service boards into one regional transit entity. This recommendation has gained support from RTA Board Chair Kirk Dillard. [7336d764]
According to a recent article by GOBankingRates, transportation costs vary across major US cities. The article discusses the 15 biggest cities in the US with the cheapest transportation costs. The annual cost per person in 2023 was $12,295, according to the U.S. Department of Transportation. The cities with the lowest transportation costs are San Antonio, Texas; Charlotte, North Carolina; Tucson, Arizona; Oklahoma City; Memphis, Tennessee; El Paso, Texas; Columbus, Ohio; Tulsa, Oklahoma; Albuquerque, New Mexico; Kansas City, Missouri; Raleigh, North Carolina; and Omaha, Nebraska. The methodology used to determine the cities with the cheapest transportation costs is also provided. [d437d8bc]