A commission heavy with advocates of congestion pricing was named yesterday to study Mayor Michael R. Bloomberg's contentious traffic-cutting proposal and present a recommendation to state and city lawmakers.
Gov. Eliot Spitzer nominated Marc V. Shaw, a former deputy mayor under Mr. Bloomberg, as head of the 17-member commission, which must make its recommendation by Jan. 31 on whether to impose an $8 daily charge on drivers entering Manhattan below 86th Street. The charge for trucks would be $21.
The commission includes two other members appointed by the governor, who has endorsed the mayor's proposal, three members appointed by Mayor Bloomberg and three appointed by City Council Speaker Christine C. Quinn, who has also supported the plan.
It would appear from those appointments that the mayor can count on a majority of commission members to back his plan. The commission was created by a law passed during a special legislative session in July as a compromise between supporters and opponents of the congestion pricing plan.
The federal Transportation Department said last week that it would give New York $354 million if it went ahead with the mayor's congestion plan. The money would go mostly to improve bus service for drivers who switch to mass transit.

They have made it a priority at the United States Department of Transportation: Get people out of their cars.

This week, the department announced $848 million in grants to help cities discourage people from driving, in many cases by imposing new tolls or fees.

But at the same time, another arm of the federal government seems to be sending a very different message. Congress provides a tax break to many of those same drivers to help them shoulder the costs of taking their cars to work.

Close to 400,000 commuters nationwide - about half of them in the New York City area - take advantage of a provision in the federal tax code that allows them to use up to $215 a month in pre-tax wages to pay for their parking at work, according to executives at corporate benefits firms that specialize in administering the tax break.

While some drivers use it to pay for parking at commuter rail stations or bus stops, most take advantage of it to pay for parking near their workplace, mostly in city centers, the executives said.

The tax savings can equal about $1,000 a year for some drivers. And the effect makes driving to work more desirable.

"It is perverse," said Jeffrey M. Zupan, a senior fellow for transportation at the Regional Plan Association in New York. "If you're going to institute pricing measures that are intended to reduce the amount of driving, you don't want to keep in place other measures that encourage people to drive. What you want is a set of policies that work together."

The federal government said on Tuesday that it would provide $354 million for Mayor Michael R. Bloomberg’s broad plan to reduce traffic, but left it to the city to come up with more than $200 million needed for the most controversial part of the plan: a system to charge people who drive into Manhattan.

In addition, under the agreement outlined by the United States secretary of transportation, Mary E. Peters, the release of the funds is contingent upon the City Council’s and the State Legislature’s approving the plan, including the new fee on drivers, by next March.

The announcement was mixed news for Mr. Bloomberg, who is trying to establish the first broad-based congestion pricing program in the country, and to raise his national profile on environmental issues. While the federal support helps to advance his initiative, it is now up to the mayor to find the money — through borrowing, appropriation, or perhaps from a private corporation — for what has been seen as the centerpiece of the plan, the new charge on drivers.

In its federal application, the city estimated that it would cost $223 million to install a computerized system to monitor traffic and impose the fee on cars entering the busiest parts of Manhattan, and asked the United States to cover $179 million of that. But the Department of Transportation said it would contribute only $10 million to that initiative. Most of what the department agreed to provide on Tuesday is designated for the construction of bus depots and other mass transit improvements.

In Houston, $225,000 will buy a three-bedroom house with a game room, den, in-ground pool and hot tub.

In Manhattan, it will buy a parking space. No windows, no view. No walls.

While real estate in much of the country languishes, property in Manhattan continues to escalate in price, and that includes parking spaces. Some buyers do not even own cars, but grab the spaces as investments, renting them out to cover their costs.

Spaces are in such demand that there are waiting lists of buyers. Eight people are hoping for the chance to buy one of five private parking spaces for $225,000 in the basement of 246 West 17th Street, a 34-unit condo development scheduled for completion next January. The developer, meanwhile, is seeking city approval to add four more spots.

Parking in new developments is selling for twice what it was five years ago, said Jonathan Miller, an appraiser and president of Miller Samuel.

Although spaces in prime sections of Manhattan are the most expensive, even those in open lots and in garages in Brooklyn, Queens, Riverdale and Harlem are close to $50,000, although at least one new Brooklyn development is asking $125,000.

London

THE New York State Assembly ended its session on June 22 without reaching a consensus on Manhattan's congestion pricing proposal - a delay that may cost New York City some $500 million in federal transportation money. Assembly members have voiced concerns about the economic impact of the program, the effect on traffic outside Manhattan and even the effectiveness of the idea itself.

Four years ago, London was engaged in a very similar debate. We now have the luxury of hindsight. While the two cities' situations are not identical, they certainly have analogies and therefore, perhaps, the success of London's program can shed light on the current debate in New York.

At that time, London's business district was undergoing rapid growth, but it was at capacity in terms of traffic. Efforts to channel more cars into the city center simply led to ever lower traffic speeds, which in turn led to business losses and a decrease in quality of life. Simultaneously, carbon emissions were mounting because of the inefficiency of engine use.

In 2003, London put in place a £5 (about $9) a day congestion charge for all cars that entered the center city (the charge is now £8). This led to an immediate drop of 70,000 cars a day in the affected zone. Traffic congestion fell by almost 20 percent. Emissions of the greenhouse gas carbon dioxide were cut by more than 15 percent.