Report: Thruway toll hike should be ‘last option’

In December 2022, the Thruway Board of Directors started implementation of a multi-year schedule of systemwide toll increases. The proposal calls for a 5% increase for New York-issued E-ZPass drivers and a 75% increase for non-New York EZPass drivers starting Jan. 1, 2024.

The board of directors must hold a series of public hearings on the proposal before the Thruway Authority can formally adopt the increases. Hearings will be held throughout 2023.

It also would expand the rate differential between New York E-ZPass users and all others. The toll hikes are expected to increase toll revenue by 28.4%, or $1.9 billion, through 2031.

The last toll increases for those paying through the mail and out-of-state drivers occurred in January 2021.

Since the system doesn’t receive tax-dollar support, the Thruway has to be supported by tolls.

“The Thruway Authority and its team of employees work hard every day to hold the line on spending and present a balanced budget that ensures the continued viability of the system,” Board Executive Director Matthew J. Driscoll has said. “As a tolling authority, we receive no federal, state or local tax dollars to support our operations.”

DiNapoli urged that before any tolls are increased, the Thruway address the following concerns:

• Resolve systemwide cashless tolling issues. Before asking system users to pay more, the Thruway should address implementation problems and ensure that it has a clear and accurate forecast on which to base revenue estimates. The Thruway should also provide better documentation and disclosure of the assumptions used to develop the revenue and traffic projections that support its proposal.
• Perform a comprehensive assessment of operating needs and expenses to identify costs that may no longer be necessary. Since 2012, there has been a significant decline in the number of Thruway staff, while its reliance on procurement has increased. Reporting of key performance indicators is essential to identify opportunities to improve efficiency and transparency. Savings from better coordination with other state agencies or authorities should be explored.
• Maximize non-toll revenue sources including federal funding and revenue streams that could be generated from its assets and infrastructure. As shown by recent major increases in revenue from its fiber optic system, the Thruway should pursue alternative revenue streams from its service areas and gasoline stations, special permits and other property. The Thruway should demonstrate that it has exhausted all funding opportunities.
• Disclose capital needs assessment to justify cost projections. The Thruway’s new $1.9 billion capital program for 2023-2027 and associated debt costs are cited as part of the justification for the toll increases, but there are significant gaps in available information related to the management and condition of its assets and capital needs. The Thruway has not provided a comprehensive capital needs assessment that would allow policymakers and the public to understand the condition of the system and evaluate whether it is effectively prioritizing projects and targeting funds to essential capital projects.