Relates to enacting the New York state thruway authority accountability act

Summary of specific provisions

Section 1 of the bill entitles it as the New York State Thruway Authority Accountability Act.

Section 2 of the bill adds a definition of the Department of Transportation.

Section 3 of the bill reconstitutes the Board of the Thruway Authority, establishes qualifications for appointment, and adds the Commissioner of Transportation as the ex officio chair of the Board.

Section 4 of the bill specifies that the Commissioner of Transportation will have sole responsibility in administering the operations of the Thruway Authority.

Section 5 of the bill directs the Commissioner of Transportation to establish a plan to merge the operations of the Thruway Authority with that of the Department of Transportation (DOT). It also provides that there will be no layoffs of personnel in either the Thruway Authority or DOT as a direct consequence of the merger. The Commissioner is required to submit a merger plan to the Governor and Legislature within 120 days of the effective date of this Act. Furthermore, the Commissioner must contract with a certified public accounting firm to undertake an independent, comprehensive forensic audit of the Thruway Authority, which will have to be completed within one year of the initial contract and then conducted every 3 years thereafter. This audit is to be submitted to the Governor, State Comptroller, and Legislature.

Section 6 of the bill outlines who is to be responsible for the operation and maintenance of the Thruway system.

Section 7 of the bill directs the Thruway Authority to submit its requisite annual report to the legislative leaders and fiscal committees.

Section 8 of the bill mandates that DOT's annual budget request include any proposals for toll increases and the justification for such increases.

Section 9 of the bill is the effective date.

Justification

The Thruway Authority is not working. The currently proposed 45 percent toll hike on trucks would actually be the fifth toll hike since 2004. As a frame of reference, in the first 50 years of the Thruway, there were only four toll increases. Clearly, the

problems at the Authority are so severe, the lack of accountability so systemic, and the fiscal irresponsibility so breathtaking that we need to hit the reset button and start over.

This "Thruway Authority Accountability Act" would restore accountability, increase efficiency and reduce expenses by making structural reforms and statutory changes to the Thruway Authority as follows:

(1) merging the Thruway Authority with the Department of Transportation(DOT);

(2) creating a new Thruway Authority Board, the members of which must have transportation or financial expertise;

(3) making the DOT Commissioner the Chair of the Thruway Authority Board;

(4) requiring a comprehensive forensic audit of the Thruway Authority every three years;

(5) requiring any proposed Thruway toll hikes - and the reasons for the requested increases -to be clearly identified in DOT's budget; and

(6) reducing expenses by consolidating the Thruway Authority's overlapping functions within DOT and streamlining the Authority through attrition. In December of 2011, the Spending and Government Efficiency (SAGE) Commission appointed by Governor Andrew Cuomo had initially approved a proposal to share service and leadership teams between DOT and a new Thruway/Bridge Authority. However, the cost saving merger Proposed by the SAGE Commission did not make it into its January 2012 recommendations.

Under this "Thruway Authority Accountability Act", DOT would take over day-to-day operational oversight of the Thruway Authority. However, the Thruway Authority will continue to exist to protect the $3.2 billion in outstanding bond obligations, and its credit rating, and thus prevent any default on debt. In addition, this Act would prohibit the termination of any of the Thruway Authority's more than 3,000 employees or any DOT employees as a direct consequence of the merger. Over time, cost savings would be achieved by attrition, which, for most State agencies, occurs at rates estimated to be between 5 and 10 percent annually.

Prior legislative history

New bill.

Fiscal implications for state and local governments

The bill prohibits Thruway Authority layoffs as a result of its merger with DOT. However, savings are expected from operational efficiencies and, over time, attrition. The savings are unknown at this time, but are expected to be identified in the merger plan submitted by the Commissioner of Transportation. The bill seeks to ensure that the fiduciary responsibilities of the Authority Board are to remain unaffected by this merger, and that the Authority will fulfill its obligations to bond holders. In addition, it is the intention of the Sponsor that the toils will continue to be collected and guarantee the debt of the Authority.

Effective date

Immediately.