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Fee hike needed to fund parking garages  by Dick Peterson Public Relations Take a look at the map. Right there, where MUSC is. There's water to the east and water to the west. Even more to the south.  That’s one reason parking is a problem. That and all the houses, businesses, churches, colleges and hospitals competing for space down here on the peninsula.  And MUSC is growing. More buildings supporting research, patient care and the education of health care professionals mean more employees, patients and students, and they all need space to work and to park the cars that bring them here. In the hunt for space, when spreading out or digging in means getting wet, the only alternative is up—multi-level parking garages, to be specific. Expensive, multi-level parking garages that have to be paid for with parking fees. “That’s why parking fees are going up (Catalyst, May 26),” said business services director John Runyon. “State law prevents parking facilities from being absorbed into the cost of new buildings. They have to bear the cost of paying for their own bond issues.” Reserved parking in an employee lot was increased from $15 to $20 a month in 1980 and then to $25 in 1988. The rates are increasing to $35, effective July 1. While there may be no doubt that there’s a need for more parking, Office of Parking Management director Melinda Anderson has the details: 3,000 additional spaces during the next 10 years, she said, citing the University Master Plan. The plan, created by Perkins and Will, also calls for at least one existing parking area to be occupied by another building. That would displace another 400 spaces. To meet the demand, the plan would build (subject to MUSC Board of Trustees approval) an 800- to 1,200-space garage on the Charleston High School property. Another piece of the plan would build another 800- to 1,200-space garage on the Castle Pinckney property at Courtenay and Spring streets.  Shifts in parking space allocation or in fee structure affect people and people react to what affects them. That concerns Robin Hardin and the committee she chairs. In a resolution, the University Parking Committee expressed concern that the financial impact of fee hikes would shift significant parking populations to off-campus parking, either to MUSC’s commuter lots or into the streets surrounding the campus. Anderson said that parking in the neighborhoods around the campus will become less and less available as the city extends its residential parking permit program to unmetered areas, where parking is now metered will soon be requiring permits. Because that may lead some who have left the campus system for the streets to want to return, she suggests that MUSC parkers who are thinking about leaving the system try the streets for a week or two before giving up their reserved slots.  “Be sure that’s what you want to do before leaving the system,” she warned. “The three MUSC commuter lots are usually at capacity and you might find your options outside are limited. If you want to come back, your space will be gone and you'll have to start over on the waiting list.” Another concern is the way a shift in patient parking allocation could essentially change the way people enter the hospital, she said. That could create traffic routing problems both in the streets approaching MUSC and in the passageways throughout the Medical Center complex. “It could even change what we call our front door,” she said. New Pre-Tax Program for Parking Fees Tax and Cash Management director Wendy Littlejohn has a spoonful of sugar to help employees swallow their parking fee medicine.  It’s a part of the Taxpayer Relief Act of 1997 that allows employers to create a pre-tax compensation reduction plan, under which employees could defer amounts paid for parking on a tax-free basis. For about two years the pre-tax benefit had been left too vague for employers to implement, but a January 2000 guidance from the Internal Revenue Service has cleared the fog and alleviated employer insecurities. Effective July 1, Parking Management will offer pre-tax parking to all employees who pay parking by payroll deduction. Here are the details: Recent changes in federal tax laws enable employers to offer employees the ability to “elect” to pay for parking fees through payroll deduction on a pre-tax basis (i.e., before federal, state, and FICA tax withholding have been calculated). MUSC is pleased to offer this opportunity to all employees who pay for parking fees through payroll deduction. The Office of Parking Management will manage the “tax election process” as a part of parking registration.  Beginning with the July 1 payroll, the pre-tax basis will be used as the standard method for all employees who pay for parking through payroll deduction. If you want your parking fees deducted on a post-tax basis, you must complete the attached form and submit it to Parking Management no later than June 15th. Parking fees paid by personal check, charge card or cash do not involve a tax deduction. The following FAQ’s may help you decide which tax option is best for you. What does “pre-tax” mean? Pre-tax means the parking fee is deducted from gross wages before certain taxes are calculated and deducted. What taxes are affected? Electing to have parking fees deducted on a pre-tax basis reduces federal, state, Social Security and Medicare taxable gross income, thereby reducing the amount of federal, state, Social Security and Medicare taxes withheld. Can paying for parking fees on a pre-tax basis through payroll deduction have a negative impact on me?  Pre-tax deductions such as those for parking fees are one of the components of the formula used in determining the maximum amount that may be contributed to a 457, 403(b) or 401(k) plan. A pre-tax parking deduction may reduce the amount that may be contributed to a 457, 403(b), or 401(k) plan. The reduction in reported Social Security and Medicare taxable wages reduces the amount of Social Security and Medicare benefits an employee may be entitled to upon retirement. Employees who are close to retirement or are contributing to a 457, 403(b) or 401(k) plan, should consult a tax accountant to determine if having parking fees deducted on a pre-tax basis could have a negative impact. Parking Management cannot assist with tax and retirement information. Can I change my tax option election after it has been initiated? You may change your pre/post tax option during annual enrollment in October each year, for the next calendar year. New employees will elect a tax option for parking fees when they register with Parking Management to obtain for parking fees when they register with Parking Management to obtain a parking permit. Be sure to read this carefully. If your preference is post-tax, contact Payroll for a form. The form must be returned to MUSC Payroll Office, PO Box 250811, no later than June 15. If you have any questions, contact Payroll at  792-4931.