For Immediate Release: December 19, 2007

Thruway Authority Board Takes Action to Allow Staff to Begin Public Process, Including Scheduling Five Hearings Statewide
Incremental Toll Increases Proposed to Preserve Capital Improvement Plan Ensuring Necessary Funding for Highways and Bridges

The New York State Thruway Authority’s Board today approved an item allowing staff to move forward with the public process to develop a phased-in plan to protect the safety of its roads and bridges by preserving the Authority’s $2.1 billion highway and bridge improvement plan. The proposal addresses the Authority’s out-year funding gaps through cost-containment, including further reducing full-time staffing positions, and incremental actions to increase revenue.

The Authority is in the midst of delivering its 2005-2011 $2.1 billion highway and bridge improvement plan which will enable the Authority to rehabilitate or resurface nearly 500 lane miles and replace, rehabilitate or provide preventative maintenance of nearly 200 bridges along the Thruway, and bring Highway Speed E-ZPass to specific locations along the System.

Without taking action to address these out-year gaps, the Authority would be forced to significantly reduce its capital investments or drastically reduce its highway operations, jeopardizing the Authority’s high standards of safety and service.

Recognizing the need for cost-containment, the Authority has worked to reduce its own costs. For example, the Authority has eliminated more than 450 positions since 1995 and the Authority plans to continue reducing staffing levels by at least another 50 positions by the end of 2011.

If approved by the Board next Spring, the plan would enable the Authority to meet its goals of maintaining and operating the highway, delivering high levels of safety and service and implementing the capital program.

As presented to the Board today, staff’s proposed plan establishes an E-ZPass discount of 5 percent off the cash rates for both commercial and passenger vehicles in June 2008; and provides for incremental 5 percent general toll increases in 2009 and 2010 (see attached Comparing Passenger (2L) Toll Rates & Comparing Commercial (5H) Toll Rates charts).

If approved and when fully implemented in 2010, the average passenger trip (2L), with E-ZPass, would increase approximately one-cent-per-mile. If approved and when fully implemented in 2010, the most prevalent commercial vehicle on the Thruway (5H) would see, on average, a four-cents-per-mile increase in tolls.

The recommended plan would have less of an impact on commuters who rely upon the Thruway for their daily trip to and from their place of employment. Under the proposal, the annual mainline commuter permit plan which provides free trips of 30 miles or less, would remain at $80 annually (where it has been since 1988) until 2009 when it would increase to $84 and then to $88 in 2010.

Commuters who use the Thruway’s bridges or barriers on frequent basis (Grand Island, Yonkers, Harriman, Tappan Zee, and New Rochelle) would also see pennies per trip increases, but not until 2009 and 2010. In addition, while the Tappan Zee Bridge cash toll would increase one dollar to $5.00 per round trip, commuters would still be eligible for a $2.00 discount off the cash rate. The proposal also retains a HOV discount, carpool commuter plan, at the Tappan Zee Bridge.

In an effort to encourage the use of environmentally friendly vehicles, the proposal retains a 10 percent additional discount for vehicles with high fuel efficiency and super ultra low emissions (Thruway Green Pass Discount Plan).

The plan assumes that the Authority’s move towards highway speed E-ZPass would require the discontinuance of special commercial vehicle discount programs, but would preserve the Commercial Volume Discount Program. A Thruway Charge Account customer qualifies for a discount when its toll charges total over a $1000 or more a month. The volume discount is applied to the monthly bill after the 5% E-ZPass discount and other additional discounts have been applied (the omnibus discount and the special additional discount for certain commercial vehicles such as 48 ft Tractor trailer). The current Volume Discount Program provides a total of $21 million in savings annually to commercial carriers enrolled in the program.

The operational and revenue toll adjustments being proposed would provide sufficient resources to preserve the Authority’s Multi-Year Capital Program, ensuring that the operational and structural integrity of the Authority’s facilities will be maintained. The phased-in approach would allow the Authority to continue to properly maintain the highway, and revisit the plan if either traffic returns or if the Authority’s financial obligations change in any way.

Based on today’s Board action, Authority staff will now move forward with the regulatory process in accordance with the State Administrative Procedure Act, the State Environmental Quality Review Act, Section 2804 of the Public Authorities Law relating to financial disclosure by public authorities prior to implementation of a toll increase and all other applicable laws and regulations.

The Authority will continue to work with members of the Legislature, Executive Branch, the New York State Comptroller’s Office, and members of the public.

While only required to hold three public hearings, as part of this process, the Authority will hold a series of five public hearings across the State. Once finalized, information about the dates, times and locations for the hearings will be posted on the Authority’s website at www.nysthruway.gov/news/index.html. Once the public process has concluded, Authority staff will present a plan to the Board for final action sometime next Spring.

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