August 14, 2012 Governor Andrew M.

Cuomo State Capitol Albany, NY 12224 Dear Governor Cuomo: During my time in the State Assembly, I have worked diligently to promote your economic 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 New York 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 vehicles aimed at increasing agency revenue by $90 million annually. Under the plan, tolls on a trip from Albany to Buffalo would rise from $44 to $64 for a three-axle truck and reach roughly $95 for a five-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 the trucking 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 the consumer. Neither outcome is desirable nor acceptable. Also, traffic on non-toll roads will increase exponentially as truckers seek to avoid the increased tolls. Like everything else, the more something is taxed, the less we get. The impact of these toll increases would have a far-reaching effect, particularly in my district. With so many rest-stop plazas and commercial businesses like hotels and restaurants relying on capital from the trucking industry, there are a litany of families and businesses whose economic 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 excerpt from the State Comptrollers report reads: We found that, while the New York State Thruway Authority has a capital plan that consists of certain projects with certain expected costs, this information is not published in its entirety for the Authoritys Board of Directors, State policymakers, or the public to review. In particular, the Authority does not report whether the individual projects are starting and finishing on time or remaining

within their originally budgeted costs. As a result, there is limited accountability and transparency for the Authoritys capital plan. The Thruway Authority, in large part, ignored recommendations or only partially implemented changes from the 2008 audit. The State Comptroller has also noted that if the Thruway Authority had followed through on those changes, many of the same problems that exist today would have been addressed. How many times will the Thruway Authority increase tolls while ignoring audit recommendations when its clear their 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, the Thruway Authority has not maintained the level of fiscal and management discipline that the Governor has demanded of the rest of the state. I have no confidence that this 45 percent toll increase represents a new found fiscal discipline or is a long-term solution to the Thruway Authoritys problems. Rather, it is almost certainly nothing more than another band-aid on a gaping 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. I urge 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 and the State Department of Transportation. State government has made serious strides to undo years of fiscal mismanagement and irresponsibility 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 continue down that path to prosperity. Please do not hesitate to contact me for any assistance in this matter. Sincerely,

Steven F. McLaughlin Member of the Assembly 108th District