NewCostSavings fortheThruwayAuthority

Presented by Thomas Madison Executive Director of the NYS Thruway Authority

AnHistoricDayfortheThruwayAuthority
ChartingaNewPathForward
Doingthingsdifferently PuttingtheAuthoritysfiscalhouseinorder Savingmoneyandbuildingbigagain

AttodaysBoardMeetingtheThruwayAuthoritywill Presented by Thomas Madison voteona2013budgetavertingatollincreaseand Executive Director of the NYS Thruway Authority approveacontractforthenewNewYorkbridge

NewMeasurestoReformThruwayFinances
! Thisyear,GovernorCuomorequestedthattheThruway AuthorityconductanindependentauditoftheAuthoritys fiscalconditionandoperatingpractices ! NavigantConsultantsfoundtheAuthoritypursueddecadesof financialpracticesthatwererisky,reckless,andlacked transparency.

! Withoutaction,theThruwayAuthoritysHighAcreditrating wouldhavebeendowngraded,leadingtohigherborrowing costsandhighertollsforcustomers

NewMeasuresforFiscalReform
! GovernorCuomoaskedtheThruwayAuthoritytoconsider allpossiblefiscalreforms ! Wereopenedourbooks,reviewedtheNavigantreport, andfoundmoresavings,reforms,andopportunitiesto improveThruwayoperations

NewMeasurestoPreventTollHike
! AfterworkingwithGovernorCuomoandhisadministration tofindadditionalcostsavingmeasuresandpermanent reforms,todayIwillpresenttheThruwayBoardof Directorswithanewcostsavingplanthat

doesnotincludeanytollhike.

NewMeasuresforFiscalReform
! ThruwayAuthorityhasbeguntoimplementplanstoeliminate poorfiscalpractices,maketransformativeoperational changes,andgeneratelongtermcostsavings. ! Theplan:
Cutting$25millioninoperatingcostsin2012withmorethan$130 millioninfiscalreformsplannedinnext3years Eliminating$900millioninriskyshorttermdebt

NewMeasuresforFiscalReform
! From20112013,361positionswillbeeliminated,shrinking theAuthority'sworkforceby6% ! Significantreductionsindiscretionaryexpensessuchastravel andovertime ! M/Cmanagerssalariesfrozen ! ThruwayAuthoritywillworkwiththeCuomoAdministration andtheSAGECommissiononfurthersavingsconsolidations andServiceSharingopportunities

NewMeasuresforFiscalReform
ThePlanalsoincludes:
! Implementingcomprehensiveoperationalreforms,including streamliningmeasures,betterassetmanagementandservice sharing ! AuthorityendingannualreimbursementforNYSPolice expenses,inplacesince1954 ! TheThruwayandtheStatewillfindnewopportunitiesfor sharedservices ! Proposed2013operatingbudgetis21%below2012

ContinueCostCuttingandConsolidation
Ongoingefforts:
! ! ! ! ! ! ! Reducevehicleandequipmentpurchasesandfleetsize BringAuthorityemployeebenefitplansinlinewithNYS Consolidatemanagementfunctionsw/inAuthority Bulkenergybuyingtoreducepowercosts Enhancedenergyefficiencyoffacilitiesandvehicles ImprovedRealPropertydispositions ExplorejointmanagementoptionsforCanalCorporation

ANewDayattheThruwayAuthority
! Allofthesetransformativeactionswillcutcostsby hundredsofmillionsofdollars,preventtheproposed45 percenttollhike,andatthesametime,allowtheAuthorityto build biggerandbetterthanever. ! Today,theAuthoritywilltakeanotherhistoricaction:

BridgeOptions
Proposal1 Proposal2 Proposal3

ProposalPrice: ProposalPrice: ProposalPrice: $3.990Billion $4.059Billion $3.142Billion

BridgeOptions
Proposal1
ProposalPrice: $3.142Billion ConstructionTime: 5Years,2.5 Months Dredging:Approx. 951,000CubicYards MassTransitReady

Proposal2
ProposalPrice: $3.990Billion ConstructionTime: 5Years,11.5 Months Dredging:Approx. 1.8MillionCubic Yards MassTransitReady

Proposal3
ProposalPrice: $4.059Billion ConstructionTime: 5Years,11Months Dredging:Approx. 1.55MillionCubic Yards MassTransit Readywithextra costs

TheConstructionProcess
Benefits
Willcreatetensofthousandsofjobs BuyAmericancontractprovision DesignBuildmakescontractornottaxpayersresponsibleforcost overrunsanddelays ProjectLaborAgreementprovideshundredsofmillionsinsavings

MinimizingCommunityImpact
Online24hourrealtimevideo,noiseandairqualitymonitoring ofconstruction Minimizingpiledrivingbyusingvibrationtechniquestoreducenoise Implementingstateoftheartcontrolstopreventdustandemissions

Transportingmaterialsbybargetoreducetraffic

TransformingDysfunctiontoConstruction
AftertheStatefirstannouncedplansforanewbridgein1999 therewere11yearsofdysfunction Spent$88milliontaxpayerdollars 430meetings 150concepts Nevermadeitpasttheplanningphase UnderGovernorCuomo,thisprojectmovedfromdysfunctiontoconstruction: ! NewPlanFastTracked:October2011 ! DesignBuildLawSigned:December2011 ! DEISPublished:January2012 ! ProjectLaborAgreementReached:June2012 ! Bridgeproposalssubmitted:July2012 ! FEISApproved:September2012 ! SelectionCommitteeCreated:September2012 ! PublicPreviewof3bridgedesignsandprices:December2012 ! ThruwayBoardMakesFinalSelection:Today