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As Fares Rise,
TransitChek Catches On
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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:
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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).
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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.
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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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