New York and Jersey toll agencies agree to give up free transponders for board members

New York's Metropolitan Transportation Authority (MTA) - of which the Triborough Bridge and Tunnel toll authority is a division - is reversing its stance defending free toll transponders (and transit passes) for current and former board members. They announced May 29 that they would, after all, comply with state Attorney-General Andrew Cuomo's May 25 demand that the program be discontinued immediately.

Cuomo said the program was illegal and said he would begin prosecution if they did not cease the practice.

The state attorney-general sent a similar letter to the New York State Thruway which immediately complied - canceling all free transponders of past and present board members.

The first reaction of the MTA board to AG Cuomo's letter on May 25 was to defend the program and say they would go to court to defend it. MTA chairman Dale Hemminger said free passes including E-ZPass transponders had been granted to present and past board members "for decades" and the practice had never been challenged by a law officer.

He said then that the MTA would seek a declaratory judgment from a court before abandoning the practice.

By state law members of boards like the MTA are not to be paid "compensation" (salary or benefits) although they may be paid for specific expenses incurred in their board duties.

Cuomo said free transponders and other passes constituted illegal compensation. Last year Cuomo forced many state authorities including toll authorities to cease paying health insurance premiums for board members.

Despite their initial show of resistance the MTA board has now run up the white flag on board members free passes.

A press release titled "MTA Statement Re: Board Member Passes" on the MTA website dated May 29 reads:

"In light of Attorney General Cuomo's opinion, the MTA will amend its longstanding practice of issuing free passes on the agency's transit network to its current and former board members.

"Subject to approval of its Board, the MTA would rescind its policy of issuing free lifetime passes on its operating systems to former board members. Hereafter, pursuant to the MTA's enabling legislation, active board members may only utilize passes on the transit network to the extent that such use constitutes actual and necessary expenses incurred in the performance of their official MTA duties."

The New York Daily News reported that 21 of 22 present board members had free transponders and transit passes and 37 former board members. Many had multiple transponders. MTA said that 58 current and past board members had 95 free transponders total. The New York Times reported that there were inaccuracies in the list since it included several who had died - board members that is, not the Mark IV transponders.

It is unclear what caused the MTA flip - a change of mind, legal advice, or quiet intervention by David Paterson, the new governor?

http://www.mta.info/mta/news/releases/?en=080529-HQ

New Jersey too

Today New Jersey transportation commissioner and chairman of the New Jersey Turnpike Authority (NJTA) Kris Kolluri said that state's board members have been asked to hand in their free toll transponder and transit passes.

23 New Jersey E-ZPass transponders were on issue to past and present NJTA board members.

There was no legal issue in New Jersey but Kolluri said it was a matter of principle that everyone pay their way, especially in a time of financial stringency.

see earlier report at

http://www.tollroadsnews.com/node/3562

TOLLROADSnews 2008-06-04