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August 14, 2012

Governor Andrew M. CuomoState CapitolAlbany, NY 12224

Dear Governor Cuomo:

During my time in the State Assembly, I have worked diligently to promote youreconomic development plan, re-opening New York for business and embracing our job creators.I look forward to continuing this momentum for our families and businesses that are the

backbone of our economy. However, a troubling plan has recently been approved by the NewYork State Thruway Authority (NYSTA) that threatens to stop our progress in its tracks.

On May 30, the NYSTA advanced a 45 percent toll increase on commercial vehiclesaimed at increasing agency revenue by $90 million annually. Under the plan, tolls on a trip fromAlbany to Buffalo would rise from $44 to $64 for a three-axle truck and reach roughly $95 for afive-axle truck, nearly a 45 percent increase.

Clearly, this massive toll hike would have a devastating effect on our trucking industry.Negative outcomes are virtually certain if this toll increase is enacted. Some members of thetrucking industry may be forced to take their business, revenue and jobs out of New York State

in search of more cost-effective regions, while cost for those that remain will be passed to theconsumer. Neither outcome is desirable nor acceptable. Also, traffic on non-toll roads willincrease exponentially as truckers seek to avoid the increased tolls. Like everything else, themore something is taxed, the less we get.

The impact of these toll increases would have a far-reaching effect, particularly in mydistrict. With so many rest-stop plazas and commercial businesses like hotels and restaurantsrelying on capital from the trucking industry, there are a litany of families and businesses whoseeconomic viability would be in serious jeopardy should these toll hikes be implemented.

Just four years ago, the Thruway Authority was audited by the Office of the State

Comptroller and given a lengthy list of suggestions, which has gone largely ignored. An excerptfrom the State Comptrollers report reads:

We found that, while the New York State Thruway Authority has a capital planthat consists of certain projects with certain expected costs, this information is notpublished in its entirety for the Authoritys Board of Directors, State

policymakers, or the public to review. In particular, the Authority does not reportwhether the individual projects are starting and finishing on time or remaining

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within their originally budgeted costs. As a result, there is limited accountabilityand transparency for the Authoritys capital plan.

The Thruway Authority, in large part, ignored recommendations or only partiallyimplemented changes from the 2008 audit. The State Comptroller has also noted that ifthe Thruway Authority had followed through on those changes, many of the sameproblems that exist today would have been addressed. How many times will theThruway Authority increase tolls while ignoring audit recommendations when its cleartheir fiscal house needs to be cleaned up?

The Navigant Report of 2012, commissioned by NYSTA Chair Howard Milstein, points

out many of the shortcomings of the authority. Most glaring to me was that, In short, theThruway Authority has not maintained the level of fiscal and management discipline that theGovernor has demanded of the rest of the state. I have no confidence that this 45 percent tollincrease represents a new found fiscal discipline or is a long-term solution to the ThruwayAuthoritys problems. Rather, it is almost certainly nothing more than another band-aid on agaping fiscal wound. This authority will be back again and again for toll increases that industry,and ultimately the public, cannot afford.

The legislature should enact my colleague Assemblyman Jim Tediscos bill, A2040,

which I co-sponsored, which would require any toll increase to be voted on by the legislature. Iurge your administration to conduct a full forensic audit of the Thruway Authority not only to

find savings for the taxpayers, but to seriously evaluate a merger of the Thruway Authority andthe State Department of Transportation.

State government has made serious strides to undo years of fiscal mismanagement andirresponsibility that has punished New Yorks families and businesses. I am confident that, by

reining in NYSTA spending rather than increasing tolls on commercial trucks, we can continuedown that path to prosperity. Please do not hesitate to contact me for any assistance in thismatter.

Sincerely,

Steven F. McLaughlinMember of the Assembly108

thDistrict