New York leaders agree on plan for 'congestion' charge on vehicles

NEW YORK (Reuters) – New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio agreed to a plan to charge vehicles for entering much of Manhattan to help pay for repairs to the city’s deteriorating subway system, according to a joint statement on Tuesday.

Cuomo has long favored a so-called congestion charge to generate revenue for fixing an aging subway system that is plagued by delays and closures. But the plan had been previously opposed by the mayor, who instead favored raising taxes on the wealthiest New Yorkers.

“I still believe a Millionaires Tax provides the best, most sustainable revenue source for the transit improvements our city needs,” de Blasio said in a statement. “But the time to act is running out, and among all alternatives, congestion pricing has the greatest prospects for immediate success.”

Under the plan, most people who drive into Manhattan below 61st Street will have to pay a toll. The toll amounts are to be set by the end of the year. The plan has been modeled on those introduced in London, which began charging vehicles driving into the city center in 2003, and a handful of other cities.

The governor and the mayor said they expected reduced tolls during off-peak hours, and exemptions for vehicles driven by or transporting people with disabilities, among other categories.

The FDR Drive, the main highway tracing Manhattan’s eastern flank and a main thoroughfare connecting the island to outer boroughs, will also not carry a toll.

After London introduced a congestion charge, the number of bus riders in central London increased by 37 percent in the first year, and traffic congestion dropped by about a quarter, according to the Centre for Public Impact, a non-profit organization created by the Boston Consulting Group.