The New York State Thruway Authority”™s finances have traveled a rough road of late, but Gov. Andrew Cuomo and legislators in Albany plan to smooth over some of the bumps this year.
Since early December, the Thruway Authority has been rocked by the unexpected resignations of its executive director, Thomas J. Madison; chief operating and financial officer, John M. Bryan; and board chairman, Howard P. Milstein, and announced a $1.7 billion budget that contained a $25 million deficit.
As part of his budget address, Cuomo said he is hoping to spend $1.3 billion in the next year on the highway system and the Tappan Zee Bridge replacement, aimed in part at preventing toll increases.
The money would come from the state”™s $5 billion surplus, most of which was the result of one-time regulatory settlements with banks.
Robert Megna, the Thruway Authority”™s acting executive director, told state lawmakers at a budget hearing that a large portion of the money would be used to pay for the replacement Tappan Zee Bridge, with the remainder used for repairs and capital expenses. Megna said the Thruway Authority would likely have to make cuts from its operational budget.
Construction industry groups see that large amount of money as a small drop in the bucket.
“The industry is concerned that the state”™s transportation infrastructure still remains in dire need of major revenue allocations, despite this one-shot infusion to only one government entity,” said Ross J. Pepe, in a statement on behalf of the Construction Industry Council of Westchester and Hudson Valley and the Building Contractors Association of Westchester and Mid-Hudson Region. “In truth, much more aid is needed if we ever hope to bring road, bridge and mass transit conditions up to recognized standards.”
A new bill introduced in the state Senate would direct the Thruway Authority and the New York State Bridge Authority to study the consolidation of services and functions to reduce costs. The Bridge Authority oversees five spans on the Hudson River ””Bear Mountain, Newburgh-Beacon, Mid-Hudson, Kingston-Rhinecliff and the Rip Van Winkle.
The bill was introduced by Sen. David Carlucci, D-Clarkstown, in response to the Thruway Authority”™s budget deficit.
“Ninety-five percent of the Thruway Authority”™s revenue comes from tolls,” Carlucci said in a press release announcing the legislation”™s introduction. “The hard working people of Westchester and Rockland County deserve to know how their money is being spent, and what we can do to cut costs. This study will find the answers our community deserves, because it”™s obvious we can”™t keep bleeding them dry.”
Donna J. Luh, vice chairwoman of the authority”™s board, has taken the helm in the wake of Milstein”™s departure.
“After nearly four years of highly distinguished service, Thruway Authority and Canal Corporation Chairman Howard P. Milstein has resigned from the board of directors to focus on his many business interests,” said Dan Weiller, Thruway Authority director of communications, in a Dec. 3. press release.
No statement was issued regarding the departures of Madison and Bryan, though the New York Post reported the executives resigned in advance of a report of an investigation conducted by the state Inspector General”™s office. In an email provided to the Business Journal by Weiller, Luh told Thruway employees, “Both are outstanding public servants who have led our organization through some very challenging and exciting times. … Leadership changes at the Authority are part of a natural transition of government, and I am working closely with fellow Board members and Authority staff to assure a smooth and efficient transition process.”
Reached by phone, Inspector General”™s office spokesman Bill Reynolds declined comment.
