Transfers control of the New York state canal system to the department of transportation

2 Co-sponsors

• Robert Ortt
• Michael H. Ranzenhofer

Title of bill

An act to amend the canal law, the public officers law, the state finance law, the navigation law, the economic development law, the environmental conservation law, the retirement and social security law, and the public authorities law, in relation to transferring jurisdiction over the New York state canal system to the department of transportation; and to repeal certain provisions of the canal law, the transportation law and the public authorities law, relating thereto

Purpose

This bill provides for the transfer of responsibility for canal system operations and development back to the Department of Transportation from the Thruway Authority.

Summary of provisions

Sections 1 through 100 provide for the transfer of responsibility for canal system operations and development to the Department of Transportation from the Thruway Authority.

Section 101 provides that if the Thruway Authority raises tolls faster than the change in the consumer price index, the entire amount of the toll increase must be used to pay installments on debt obligations or deposited in a fund used to buy back and retire debt issued at least two years prior.

Section 102 provides for the transfer of employees from the Canal Corporation and the Thruway Authority to the Department of Transportation.

Section 103 is the severability clause.

Section 104 provides that this act shall take effect immediately, with provisions.

Existing law

The Thruway Authority is responsible for canal system operations and development.

Justification

Recently the Thruway Authority has announced its intention to increase tolls on trucks with three or more axles by 45% in order to raise $90 million per year that it will need to cover canal expense and debt obligations going forward. While this decision has been much criticized and many have called on the Authority to look toward alternate routes of balancing its books, little in the way of legislative solutions have been advanced.

This bill is one such legislative solution to this problem, or at least a significant portion of the problem. In 1992, responsibility of the canal system was transferred to the Thruway Authority for the Department of Transportation. The stated intent of the 1992 bill was to achieve the objective of a more self-sufficient canal system. Unfortunately, that has not turned out to be the case. Instead of relying on direct government funding the canal has become reliant on toll revenue to fund its operation and maintenance and has never approached self-sufficiency.

According to the State Comptroller, the Canal System will become an ever larger drain on Thruway Authority resources in the coming years. In the decade from 2002-2011, the Canal System accounted for 8.3% of total Thruway Authority expenses. This is projected to grow to 9.9% of expenses during 2012-16. At the same time, the canal is bringing significantly less revenue than required to meet its operating expenses, much less needed capital expenses. It is clear that the objective of a self-sufficient canal system has failed to be realized.

Instead of continuing to saddle the Thruway Authority with responsibility for an unprofitable canal system, it is time for New York State to once again bring responsibility for the Canal System back under the purview of the Department of Transportation. Doing so will free the Thruway Authority from a significant burden, and, when combined with much needed internal reforms, will allow the Thruway Authority to continue to balance its books without a toll increase.

Legislative history

2013-14: S.341 Referred to Transportation 2011-12: S.7850 Referred to Rules

Fiscal implications

To be determined.

Effective date

Effective immediately.