Governor Kathy Hochul’s proposal to increase a payroll tax on businesses was quickly rejected by state lawmakers, creating uncertainty for future mass transit funding.
The tax hike was suggested to replace the revenue from the now-shelved congestion pricing plan, which would have charged drivers $15 to enter Manhattan below 60th Street. The congestion pricing plan was expected to generate about $1 billion annually for the Metropolitan Transportation Authority’s $15 billion capital plan.
State lawmakers, led by the Democratic-majority Senate, deemed the tax hike a “non-starter,” with Long Island State Sen. Kevin Thomas calling the idea “insane” during a closed-door meeting. With the legislative session ending soon, Hochul’s proposal faces significant political resistance and may not proceed, leaving mass transit improvement projects in limbo.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.