THRUWAY AUTHORITY PROPOSES TO DEDICATE $305 MILLION TOWARDS TOLL & DEBT RELIEF, CAPITAL INVESTMENTS
Pending Outcome of Canal Program Bill, the Authority Proposes to Give Back $161 Million in Toll & Debt Relief for Commuters & Commercial Trucking Firms

On the heels of Governor George E. Pataki’s proposed legislation to establish the New York State Canal Corporation as a separate and independent entity from the Thruway Authority, and phase out the Authority’s fiscal responsibility for the waterway, the Authority today announced its proposal to provide $305 million towards additional toll and debt relief and additional investments into the highway over the next six years.

If Governor Pataki’s proposed legislation is enacted, creating a separate entity to operate the Canal System, the Authority is planning a three-year phase out of its fiscal responsibility for the Canal.

“The Authority has outlined a comprehensive plan that will dedicate the savings towards toll and debt relief, while at the same time making additional investments into the highway’s infrastructure,” said Thruway Authority Executive Director Michael R. Fleischer. “Without the financial obligations of operating and maintaining the Canal System, the Authority would be in a position to give something back to its most frequent customers while at the same time, improving the level service by investing even more money in the highway.”

Should the Governor’s Canal Program Bill be enacted into law, the Authority will propose to provide $305 million towards additional toll and debt relief and additional investments into its highway over the next six years. Of this total, the Authority will recommend using $51 million for the elimination of Thruway Authority debt attributable to the Canal, $110 million for toll relief, and the remaining $144 million to enhance its Capital Plan and improve customer service.

“By setting the Canal System on a course to become a separate and independent entity from the Thruway Authority, this proposal will allow the Thruway Authority to focus on their principal responsibility, the operation and maintenance of a safe, reliable and convenient highway system for New Yorkers and out-of-state travelers,” said John Corlett, Director of Government Affairs for AAA New York. “The proposed legislation will propel the Thruway, New York State’s premier highway facility, into a new era of efficiency and productivity, enabling the Authority to make additional investments in their ambitious highway Capital Plan while substantially reducing tolls for many commuters. In short, this plan will reassure travelers that their tolls will be fully dedicated to maintaining the high level of service they have become accustomed to on the Thruway.”

“The Canal is an historic asset to the state of New York as well as a benefit to recreational boaters; however, transferring the Canal System back to the State would be a welcomed development,” said President & CEO of the New York State Motor Truck Association, Inc. William G. Joyce, Jr. “This proposed legislation will assure users that their toll dollars are being reinvested into the Thruway’s highway and bridges. We are grateful to Governor Pataki for proposing the legislation and urge the state legislature to act upon it immediately.”

The $161 million is the most combined debt and toll relief the Authority can provide under its current financial plan and still retain appropriate revenue to debt ratios over the course of its multi-year Capital Plan.

The proposed phase-out would provide the Authority with the ability to roll back tolls at some locations to 1980 rates, create new annual permit plans for two Western New York locations (Black Rock and City Line Barriers) and enhance commercial volume discounts for commercial account holders.

Under the Authority’s proposal, E-ZPass commuter customers would save $13 million per year and commercial account holders would save $8 million per year in enhanced volume discounts beginning in 2007.

The current E-ZPass commuter discount program, comprised of the Annual Permit and barrier plans, has approximately 111,000 participants. The Authority proposes to reduce the controlled ticketed system Annual Permit Plan from $80 to $60; the last time the Annual Permit Plan cost $60 was in 1980, when Ronald Reagan was President of the United States.

In addition, the Authority will propose to reduce the commuter discount rates for Yonkers, Tappan Zee Bridge (HOV only) and Harriman to $0.40, provide a similar 20 percent reduction for New Rochelle commuters.

The Authority currently offers a number of commuter E-ZPass plans at barriers Thruway-wide so that frequent customers who use the Thruway to travel to and from work or school, could enroll and effectively pay $10 a month with a minimum of 20 trips at $.50 each trip. For example, if customers make less than 20 trips, they still receive a discount if they make more than 14 trips, but pay the minimum $10 a month. In addition, the customer is able to suspend their Commuter Plan account, without penalty, by notifying the E-ZPass Customer service center when they are planning to take a week or more for vacation.

Also under this plan, the Authority proposes to eliminate the toll for commuters at Black Rock and City Line and establish $60 annual fee, allowing one free trip per day at each barrier. This would provide a 50 percent savings for the frequent user, and in effect, someone who travels 20 days per month through the barriers would pay $.25 a trip.

The $2.6 billion multi-year Capital Plan is the largest capital improvement program the Authority has undertaken since its inception. Geared towards improving customer service and retaining traditional high levels of safety and service of the highways and bridges, a number of capital projects were not funded until the final years of the plan. The Canal phase-out would allow the Authority to program and advance more than $144 million in projects including median guide rail installation, highway resurfacing and reconstruction, highway speed E-ZPass, and noise barrier installation.

Pursuant to State Law, on November 5, 1992, the New York State Thruway Authority formed the New York State Canal Corporation and took over the operation and maintenance of the 524-mile New York State Canal System. The Canal System, which was formerly operated by the New York State Department of Transportation, is comprised of the Erie, Champlain, Oswego and Cayuga-Seneca Canals. The historic waterway provides seasonal navigation between the major water bodies of New York State.

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