Just Out Of Curiosity . . .
. . . why does it cost $400 million a year to administer tolls? That seems high or, at the very least, slightly inefficient:
Posted: December 4th, 2008 | Filed under: Architecture & Infrastructure, Follow The MoneyA state commission led by Richard Ravitch, a former chairman of the Metropolitan Transportation Authority, presented a wide-ranging rescue plan on Thursday for the region’s subways, buses and commuter railroads that includes a new “mobility tax” on corporate payrolls in the region; tolls on the free East River and Harlem River bridges; a much smaller fare and toll increase than the cash-strapped authority has threatened; few service reductions; and improvements in bus service.
The plan — presented in a 19-page report — would permit automatic, inflation-adjusted fare and toll increases every two years without public hearings, ending what Mr. Ravitch called a cyclical “political circus.” The plan would allow for a state takeover of the city-owned Harlem River and East River bridges, which have historically been free to drivers. The new tolls would be collected electronically, without toll booths.
The regional mobility tax — 33 cents on every $100 of payroll — would provide $1.5 billion a year, and the tolls would produce $600 million in net revenue a year ($1 billion a year in gross revenue minus expenses), Mr. Ravitch said. The new revenue streams would help finance borrowing for a $30 billion-to-$35 billion M.T.A. capital plan for 2010 to 2014 that would help stimulate the economy while maintaining vital infrastructure.