NEW YORK (WKBW) — The New York State Thruway Authority Board of Directors voted in December to move forward with a proposed multi-year schedule of toll increases set to begin in 2024.
New York State Comptroller Thomas P. DiNapoli has released a report and said toll increases should be the last option for the Thruway Authority. According to DiNapoli, the report identifies concerns with the proposal and urges the Thruway Authority to improve operations and maximize non-toll revenues first.
“The Thruway Authority’s toll increase proposal comes at a time of extraordinary challenges for New Yorkers who are faced with rising costs for everything from food to shelter to gas. The Thruway should be more transparent with the public and disclose critical information, and identify and put in place all possible cost-savings and alternative revenue actions to minimize costs to drivers. Raising tolls should be the last option, and the Thruway has more work to do.”
Among the proposed changes, is an increase in toll rates for E-ZPass holders by 5%, beginning Jan. 1, 2024 and another 5% hike on Jan. 1, 2027. In addition, beginning Jan. 1, 2024, the current 30% Toll by Mail rate differential would be increased to a 75 percent differential. When the decision was made to move forward in December, the Thruway Authority said it would begin the "transparent process" of gathering feedback from the public during several meetings and a formal decision would be made after that. You can find more information on the proposed changes here.
According to DiNapoli, the toll increases are expected to grow toll revenue by 28.4%, or $1.9 billion, through 2031.
The comptroller said his report found that the Thruway Authority's finances and operations have been influenced by the following over the last decade:
- Implementation of cashless tolling and problems with Tolls by Mail (TBM) system
- Sharp declines in traffic and toll revenues due to the COVID-19 pandemic
- Construction of the Cuomo Bridge
- Debt management practices
- Shifting financial obligations
“New Yorkers have two ways to pay for their highways – tax dollars or toll dollars. The Thruway Authority is operated and maintained solely as a user-fee system, and is not supported by any federal, state or local taxpayer funding. Thruway toll revenues are projected to decline $240 million [over 2020- 2025] from levels prior to COVID. The Authority did not receive any portion of the funds New York received as part of the federal Infrastructure Investment and Jobs Act nor any funds from other COVID Relief programs. The annual growth rate for Thruway operating budgets averaged less than two percent increases over the 2010 - 2022 period. Our toll revenue continues to go directly toward making the Thruway one of the safest highways in the nation. The toll adjustment proposal announced in December [when it takes effect] would be the first in 14 years for NY E-ZPass customers outside of the Mario Cuomo Bridge and toll rates on the Thruway will continue to be some of the lowest in the nation. We believe this modest proposal will begin to raise additional revenue to support the long-term financial needs of New York’s main transportation corridor and engine for economic activity. We would be happy to discuss this with the Office of the State Comptroller at any time.”
In addition, the comptroller said the Thruway should address the following before any toll increases:
- Resolve systemwide cashless tolling and TBM issues
The Thruway Way Authority responded saying in a statement: "Since cashless tolling went live on the Thruway’s ticketed system in November 2020, more than 744 million transactions have been successfully recorded. Over the last two years, the Authority has made numerous improvements to the billing system which include enhancements to the Tolls by Mail website, newly designed toll bills and envelopes to emphasize ways to avoid fees and to help customers better understand the tolls incurred, and more signage leading up to and after cashless tolling gantries.
A number of the provisions proposed in previous versions of Toll Payer Protection Act legislation already exist, including delivering toll bills via First Class Mail, and offering customers the option of paying their tolls prior to or after travel with multiple payment options. We provide detailed toll bills which include a picture of the license plate, travel information, payment options, and a dispute section on every bill.
While we continue to enhance education and outreach, we also created the Office of the Toll Payer Advocate in late 2019 to assist customers who are unable to resolve their toll concerns using the Customer Service Center, and to recommend customer service reforms. The Office, which has served more than 4,900 customers to date, ensures that toll payers understand the billing process and how to avoid toll violations.
- Perform a comprehensive assessment of operating needs and expenses to identify costs that may no longer be necessary
- The Thruway Way Authority said: The Thruway Authority maintains a 570-mile super highway with more than 2,800 lane miles, 817 bridges and 134 interchanges. We produce annual budgets that maintain our sound fiscal footing and reinvest our toll revenue into the maintenance and operations of the highway. The annual growth rate for Thruway operating budgets averaged less than 2 percent increases over the 2010 - 2022 period. Our toll revenue continues to go directly toward making the Thruway one of the safest highways in the nation all while doing more with less (see page 26 of our 2023 Budget Book - https://www.thruway.ny.gov/about/financial/budgetbooks/books/2023-budget.pdf
- The Thruway Way Authority said: The Thruway Authority maintains a 570-mile super highway with more than 2,800 lane miles, 817 bridges and 134 interchanges. We produce annual budgets that maintain our sound fiscal footing and reinvest our toll revenue into the maintenance and operations of the highway. The annual growth rate for Thruway operating budgets averaged less than 2 percent increases over the 2010 - 2022 period. Our toll revenue continues to go directly toward making the Thruway one of the safest highways in the nation all while doing more with less (see page 26 of our 2023 Budget Book - https://www.thruway.ny.gov/about/financial/budgetbooks/books/2023-budget.pdf
- Maximize non-toll revenue sources, including federal funding as well as revenue streams that could be generated from its assets and infrastructure
- The Thruway Authority responded: "The Thruway Authority is operated and maintained solely as a user-fee system and is NOT supported by any federal, state or local taxpayer funding. We did NOT receive any portion of the funds New York received as part of the federal Infrastructure Investment and Jobs Act nor any COVID Relief funds, etc. The Authority has applied for federal infrastructure grants where we are eligible will continue to do so. Toll revenue is 90 percent of our total revenue."
- Disclose capital needs assessment to justify cost projections
The Thruway Authority responded: The average age of the Thruway’s 815 bridges is 55 years old with 75 percent of those bridges more than 60 years old. While they are continually inspected and maintained for the safety of the traveling public, more than 85 of them have been identified for replacement within the next decade. The need to replace bridges grows exponentially after the 10-year timeline when hundreds of bridges will need to be replaced in the following decade. To highlight the magnitude of the problem, the projected replacement cost for the most immediate 85 bridges needing replacement is roughly $800 million in today’s dollars. Factoring the hundreds of bridges that will require replacement not long thereafter, the costs escalate into the $6 - $7 billion range which the existing toll rate structure will not support.
The Office of the Comptroller never reached out to the Thruway Authority for any of this information in their report. The Thruway Authority complies with all statutory legal obligations as it relates to reporting requirements for the needs and conditions of the roadway. Furthermore, we annually produce and update our five-year capital program that is considered by our Board of Directors, who meet at live-streamed public meetings.
The Thruway Authority noted that while it can apply for funding from President Joe Biden's $13 billion infrastructure aid coming to New York, it would not be enough money to rely on for future work.
