Mass Pike CEO LeBovidge resigns in frustration - politics now rules

Alan LeBovidge executive director of the Massachusetts Turnpike has resigned, saying in a letter to Turnpike chairman and secretary of transportation James Aloisi that Turnpike policy is now being driven by politics and no longer is focussed on the financial crisis he was hired to address.

LeBovidge came under fierce criticism for decisions to save money by turning off the decorative blue lights on the Zakim Bridge and for cutting back on toll collectors (called 'toll takers' in Boston) overtime. The overtime ban together with toll collectors calling in "sick" over the Easter holiday led to cash toll lanes being left unstaffed. This in turn produced backups at a couple of toll plazas of up to 7 miles (11km).

The backups prevented transponder-equipped motorists from getting through to the electronic toll lanes.

LeBovidge accepted responsibility and said he regretted a number of decisions he'd made, but stressed the dire financial situation of the Turnpike.

Aloisi led backtracking

Turnpike chairman Aloisi led a move to reverse the unpopular decisions. The decorative lights went back on at the Zakim Bridge, after a couple of private donors said they'd help out with some of the $60k/year needed. And it was decided to drop the overtime ban for toll collectors so cash toll lanes could be fully staffed. There was also a deferral of the first round of layoffs of toll collector staff scheduled for mid-year.

Aloisi's more active role in managing the Turnpike clearly led to conflict with LeBovidge.

Hired to cut costs and reform

LeBovidge says in his resignation letter that he took the position in January 2008 on the condition that he would have authority to operate as a CEO, with full authority over hiring and firing and overall operating responsibility.

His charge from the board and the state governor was to streamline operations and reduce costs.

"Basic operating premise has shifted"

He says in the last two months "the basic operating premise has shifted" - an apparent reference to decisions backtracking on his cost reduction measures and to the board's decision to defer a toll increase.

LeBovidge says from his perspective "everything must pass a cost-benefit test" not a political test. Since he is a finance-only guy he can't justify his salary under the new political circumstances.

Aloisi apparently made no effort to persuade LeBovidge to stay.

LeBovidge, 66, was the state's chief tax collector from 2001 heading up the Department of Revenue. Before that he had a long career at one of the predecessor companies of accountants Pricewaterhousecoopers.

COMMENT: We liked the guy. He was candid, honest and commited to managing the Turnpike better. He made a mistake in over-ruling his senior staff and not allowing replacement toll collectors to be called in on ovetime pay ($45/hour) at Easter, and he acknowledged that.

But almost alone LeBovidge took the Turnpike's financial situation seriously, while everyone else in government in Massachusetts treats it as an opportunity to temporize, debate, beg, and blame others.

There is endless naive talk in Boston about "reform" of the Turnpike by merging it into a new mega-agency that would run trains and buses too, and supposedly more efficiently - following precisely what New York did just over 40 years ago when Triborough (toll) Bridge and Tunnel Authority was put under the Metropolitan Transportation Authority. New York's mega-agency, MTA, lurches from one financial crisis to the next just like Massachusetts multiple agencies.

Regardless of size these agencies in the northeast are all driven by sweetheart agreements with unions for pay and benefits way above market rates, and politically directed toll setting and other priorities. Alan LeBovidge's $160k takehome pay as chief executive made him #66 in ranking of Turnpike employees by pay. With their inflated overtime on top of generous base pay 65 other staff, many of them Turnpike police, took home larger amounts.

Full text of LeBovidge's resignation letter:

"May 6, 2009

James J. Aloisi, Jr., Secretary
Chairman, MTA Board of Directors
Executive Office of Transportation and Public Works
State Transportation Building
10 Park Plaza, Suite 3170
Boston, MA  02116

Dear Chairman Aloisi,

When I was recruited for the position of Executive Director, I did so under the conditions that I would be an “at will” employee without an employment contract and that I would have the authority to operate as a CEO, that is, with full authority to hire and fire employees and to have overall operating responsibility.

My charge, from the Board and the Governor, was to right the ship operationally and to do everything possible to institute reforms and to focus on cost reductions. The Governor’s direct words to me were “reform before revenue”. He recognized that it was highly unlikely that I could cost cut the Turnpike out of the financial quagmire that is called the Big Dig.  However, he felt, and I agreed, that the public had to have confidence that everything possible was being done to streamline operations before committing additional revenues.

I’ve devoted the last seventeen months to following this charge. However, the last two months have made it clear to me that the basic operating premise has shifted.

As you know, in keeping with my mandate, I approach everything at the MTA from a financial, not political or other, viewpoint. From my perspective, everything must pass a cost-benefit test. Given today’s circumstances, I cannot in good conscience say to the members of the Board, or more importantly our toll payers, that my daily contribution to this mandate is cost justified when measured against my compensation.

Consequently, I am resigning effective immediately.

I am leaving you with a strong senior management team that can help navigate the Turnpike through the rough waters ahead. These individuals, plus many more supporting them, are working under extremely adverse conditions but continue to carry out their responsibilities diligently and without complaint. I wish them and the Board well.

Sincerely,

Alan LeBovidge
Executive Director

Cc: Members of the Board of Directors END TEXT OF LETTER

TOLLROADSnews 2009-05-06