New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE February 26, 2001

SCHUMER MASS TRANSIT CREDIT COULD SAVE LONG ISLAND COMMUTERS HUNDREDS OF DOLLARS EVERY YEAR

Schumer Unveils New Initiative To More Than Double Federal Mass Transit Benefit For Local Commuters

Standing at the Mineola Long Island Railroad (LIRR) Station, US Senator Charles E. Schumer today unveiled a plan that would more than double federal mass transit benefits for Long Island commuters, saving them hundreds of dollars per year in transportation costs while simultaneously reducing traffic, congestion and smog.

Schumer's proposal, which he recently introduced as legislation in the Senate, would will save Long Island commuters up to $700 per year by increasing the amount of pre-tax income commuters can set aside for mass-transit expenses from $780 per year to $2,100 per year. The increase would also make the mass transit benefit commensurate with benefits the federal government provides to employers to help cover employee parking costs, encouraging more drivers to switch to mass transit.

"The mass transit subsidy program is a great idea, but it is undermined by the fact that we provide a parking benefit that is much more generous," said Schumer. "My proposal rewards commuters who choose mass transit and makes drivers think twice about getting in their cars. For Long Island commuters who use the LIRR, this increase could mean hundreds of dollars per year in savings."

Currently, employers can either set aside up to $65 each month - $780 per year - of an employee's income for mass transit expenses that the employee will not have to pay federal income taxes on, or offer employees a tax-free subsidy of up to $780 per year for mass transit expenses.

Schumer plan's, introduced in the Senate as the Commuter Benefits Equity Act of 2001, would raise the set aside from $65 to $175 per month - $2,100 per year. Under the set-aside option, employees could save the taxable portion of $2,100 in income, which averages, approximately, $700 per year. Under the employer subsidy option, employees could receive up to $2,100 in tax-free mass transit subsidies, saving employees on mass transit costs, as well as the taxable portion of the subsidy. The program also reduces payroll taxes employers pay on employee salaries.

Schumer said his legislation would not only provide hundreds of dollars in savings to commuters, but also encourage more drivers to choose mass transit. The bill brings the mass transit subsidy up to the same level a federal program that provides a $175 aside for employee parking expenses, removing the disincentive to take mass transit. The bill would also raise the benefit above the average travel monthly travel expense for LIRR commuters, who currently pay $155 per month to get to and from New York City. Commuters who travel between Mineola and Penn Station spend $135 for a monthly ticket.

Schumer expressed confidence that more employers will offer the expanded benefit. In 1998, for example, when the federal transit benefit was increased to $65 and New York City Transportation authorities created the unlimited ride, $63 MetroCard, the number of companies offering transit subsidies increased from 8,000 to 13,000 in just two years. Schumer said that the bill would help bring relief to all drivers who drive in and around New York City. Traffic delays in and around New York City have increased by 158% since 1982.

"Simply stated, the daily commute on the LIE is a nightmare. Thousands of Long Island drivers are looking for a better way," said Schumer. "If we can make mass transit financially attractive, many commuters will be more than happy to leave their car keys at home. I'm confident that we get this bipartisan bill to the President's desk in the next few months so that thousands of Long Island commuters can kiss their LIE travel woes goodbye."

The bill, which is cosponsored by Republican Senators John Warner, Rick Santorum, Lincoln Chafee and George Voinovich, has broad bipartisan support and the endorsement of groups ranging from the Sierra Club to Environmental Defense to the US Conference of Mayors.

Larry Filler , President & CEO of TransitCenter, Inc ., and Mike Doyle, Associate Director of the Permanent Citizens Advisory Committee to the Metropolitan Transportation Authority joined Schumer at a press conference to announce the legislation.

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