News from New York State Thruway Authority

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Statement from the New York State Thruway Authority

ALBANY, NY (04/24/2008; 2135)(readMedia)-- Operating under Board-imposed cost containment measures for years, with an added emphasis on the restraints since the Authority announced the proposed toll adjustment in December 2007, the Authority has already eliminated more than 450 positions since 1995 and plans to eliminate at least another 50 positions by the end of 2012.

Despite these significant and effective cost containment measures that will result in operational growth less than the rate of inflation, additional revenue is needed to continue to fund the Authority's multi-year Capital Program.

On Friday, April 25, Authority staff will present the six-member Board with a proposed toll adjustment plan that will compliment cost containment efforts and will enable the Authority to fulfill its commitment to provide safe and reliable roads and bridges to Thruway motorists.

The State's transportation infrastructure is in need of attention, the Thruway does not stand alone in this, but with a penny-per-mile increase on the table, the Authority is not inclined to risk safety and service.

The total impact of all of the recommendations contained in the Comptroller's January Audit does not even come close to providing the necessary revenue required to preserve the Thruway's roads and bridges, and maintain high levels of safety and service for Thruway motorists. Authority staff has projected that only $6 million in additional revenue will be generated from implementation of certain OSC recommendations.

In fact, over the past several months, the Authority has been in contact with the Comptroller's Office and has communicated several times that:

The Authority will use a collection agency to enhance the collection of delinquent E-ZPass tolls and related fees, and is also pursuing Legislative assistance to enhance collection efforts. This effort will result in a small amount of additional revenue each year (5 million in 2008 and 1 million annually each year thereafter). The Authority currently collects over 99 percent of the tolls owed each year;

in response to the Authority's inquiry concerning enhanced advertising and sponsorships, FHWA has deemed that rights of way of public highways must be devoted "exclusively to public highway purposes," and that sponsorship/advertising along the Thruway right of way is severely restricted. As a result, the Authority does not anticipate any additional revenue will be collected from this OSC recommendation;

With regards to the OSC recommendation to plan on higher levels of federal aid, the Authority has sought to renew its agreement with NYSDOT to obtain additional Federal aid; no additional Federal funds were obligated for the Thruway in the State's 08/09 Budget or NYSDOT's proposed Capital Plan (2009-2014);

OSC recommended that a top to bottom review of operations should occur. The Authority is in discussions with a group affiliated with FHWA to perform a comprehensive analysis of the Authority's operations to determine where efficiencies can be found. However, the Authority has pursued strong and effective cost controls that have limited operational growth to a level less than the inflation rate. Any additional savings proposed by an additional review will be analyzed and future phases of the toll adjustment can be revisited if any savings can be found;

Finally, the Authority cannot divest itself of the Canal Corporation; such a measure requires an act of the Legislature.

The proposed toll adjustment will be phased in over time so it can be revisited if conditions change due to mandate relief or other measures. In fact, the Authority waited to present the proposal to the Board for final action until after the State budget was passed, however, no monetary or statutory relief was provided to the Authority. Had relief been provided, the Authority could have pursued other options, but the increase is, now, the last resort.

It is important to stress, again, even if fully implemented, the cost increase for passenger vehicles on the ticketed system would be less than a penny per mile while preserving the Authority's high levels of safety and service.

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