| GOER eyes pilot program Efforts to cut commuting costs picking up speed By SHERRY HALBROOK Some progress is being made in paving the way for PEF members to save money on public transportation. Members working in the New York City area have been eager to see some relief in their commuting costs and the union has been discussing the issue with the Governor’s Office of Employee Relations (GOER). “It would be good public policy for New York State, it would save both the state and its employees money, and it would promote a cleaner environment by encouraging employees to use mass transit,” says PEF President Roger Benson. State Acting Director of Employee Relations John Currier says the state is very interested in the idea. “We’d like to do it anywhere in the state that it’s possible,” Currier says. The state subsidizes mass transit, he says, and is interested in encouraging more people to use it. However, he adds, the issue is more complex than even he first recognized. “We have several people working on this, meeting with New York City, the Office of the State Comptroller, the Division of Budget and vendors that want to administer the program for us,” Currier says. “It seems like New York City would be the easiest place to do a pilot program, but we’re still talking to everybody about it,” Currier adds. They are also taking a close look at Buffalo, he says. While no negotiated agreement has been reached on the specifics, the discussions have focused on establishing a program that would allow PEF members in state service to set aside a portion of their paychecks to purchase mass-transit vouchers. The money would be deducted from your pay before it became taxable income and you would save by paying lower income taxes. One example, TransitChek vouchers, are accepted by more than 70 transit operators in the New York, New Jersey and Connecticut area. Currently, participating employees can set aside up to $65 monthly or $780 annually from their pre-tax pay to buy TransitChek vouchers. Next year, the maximum monthly tax credit for commuting to work by mass transit would go from $65 to $100. However, the state could structure its program to set lower limits than the maximums allowed under Section 132(f) of the tax code. How much you could save on your taxes would depend on your tax bracket, but PEF estimates a member might save up to $300 annually. The state would save money through lower payroll taxes, but that would be partially offset by the cost of administering the program. |