Issue 421 June 23, 2003

As Fares Rise, TransitChek Catches On

Transportation fringe benefits are becoming increasingly popular, and many elected officials in NY are responding.

According to a recent Crain’s article, enrollment with TransitCenter, the main non-profit that runs the TransitChek program in NYC, increased 40% between April of last year and April of this year. TransitChek takes advantage of a federal pre-tax mass transit program that allows employees to spend up to $100 of pre-tax income on transit. The increase is due in part to the recent fare increases for MTA bus, subway and railroad services.

Additionally, the transit benefit saw action in these areas last week:

  • Senator Chuck Schumer is pressing again for his legislation to even out transportation fringe benefits for drivers and mass transit riders, and increase the benefit for both. Currently, transit riders are eligible for only $100 in pre-tax spending on transit, while drivers can use up to $170 pre-tax for parking. Under Schumer’s legislation, both transit riders and drivers will be able to spend $190. The bill would benefit commuter rail riders, many of whom spend more than $100 a month on transit. The bill (the "Commuter Benefits Equity Act" -- S. 661) is waiting to be heard by the Finance Committee. Co-sponsors include Senators Clinton, Warner (VA), Sarbanes (MD) and Kennedy (MA).

  • City Council Speaker Gifford Miller’s bill that would require companies with more than 50 employees to offer TransitChek still awaits a hearing in the Council’s Transportation Committee. No date has been set.

  • Meanwhile, NJ state employees still await transit benefits that were approved for them over a year ago. The New Jersey legislature and Acting Governor Donald DiFrancesco approved a Transit-Chek style program for state agencies in 2001. The measure has gone unimplemented during Governor James McGreevey’s first 15 months in office. 

 

 


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