Associated General Contractors cof New York State, LLC 10 Aine Oi, Suits 203| ny, Ne Ya 12208-1025 stedseliaae 518-4561190F nag ‘Apeil27,2011 ‘The Honorable Grey Ball ‘The Honorable James N. Tedisco "New York State Legislature ‘Albany, New York. 12247 Dear Senator Ball and Assemblyman Tes: Like you, the Associated General Contactors of New York State's members are very concemed bout the high gas prices being pa by our state's drivers. Most of our members are themselves small businesses who are being dimetly impacted by the increased costo skyrocketing gas prices. However, ‘our members are also coneemed to see thal your proposed legislation cals for cutting the only revenues ‘associated withthe sale of gas that are spent on making our roads and bridges safer for New York's “rivers~especilly at atime when our ‘wansportation infrastructure isin dire need and the state's Dedicated Bridge and Highway Trust Fund is already insolvent. leis our understanding that your bill Would create thee gas holidays in which the state excise ax, ‘sales tax and Petroleum Business Tax (PBT) on gasoline would not be collected. The revenues collected from the excise tax and PET ae dedicated to state and local transportation infrastructure repair. AS it stands right now, the state's General Fund transfers moe in revenues tothe State Dedicated Highway and Bridge Trust Fund than it takes in from the sales tax on gs. Eliminating these tree critical revenues sources for any period of tine will only increase the criss facing our state's aging and deteriorating infastucture~and fuer de-imate the Trust Pund ‘The Dedicated Bridge and Highway and Bridge Trust Fund has been somewhat less than “dedicated,” as it continns tbe tapped for any numberof expenses unrelated tothe Fund's purpose to the tune of more than $700 lion a year-including snow removal and bus inspections. These raids have pilfered the funds drivers pay to maintain our transportation infastrcture and must be stopped. Senator ‘Tom Libous and Assemblyman Joe Morell have introduced two pieces of legislation to adress his issue (82467/A.7198 and S.1071/4.7205) which we would urge you to review and suppor. ‘As you know, New York has some of the worst bridge and road conditions in the country and river ate paying an aorage of over $100 annually in extra vehicle operating costs because ofthe ‘According to the Now York State Department of Transportation (DOT) funding levels in the 2011-12, ‘budget wil cause both bridge and pavement conditions to further deteriorate: ‘+The percentage of fair and poor pavements wil spike up from 45 percent 57 percent; ‘+ Highway bridges willbe in the worst condition they have been in over a decade; and ‘+ Compared to just thre years ago the state will spend $600 million less (@ 31 percent deine) in A Caper one Asoc Gane Comcast AmacaSenator Ball and Assemblyman Tedisco ‘April 27,2011 Page Two Additional investmert in transportation infastructare will lit New York's economy. In 2011, th DOT wil spend $20 milion in pavernent repair in th Capital Region, about half of what they need to chive a state-of good-repar, which according tothe agency will encrats: + $11 ation i ite alates + SSmilion in iret salaries; $6: million in ruck and auto fact costs and + $26 milion savings in vehicle maintenance repair. “This results in total eur of $28 milion o 4 ines he eign investment of $20 mi addition, it will reduce greeshouse gases by busineses and taxpayers~and our esonomyy Furthermore, we ae not convinced that temporarily reducing these taxes would even translate to savings atthe pump. Just feday, a story inthe Times Union chronicled the failure of «reduction in ‘Albany County's ax on fuel -0 reduce prices atthe pump. AGC NYS shares yeur concern about how high fel cost in New York are impacting motorists and businesses alike, We are also very concerned about how out deteriorating transportation infastrture i incresing their costs as well. Bad roads and filing bridges impose much higher cosis than a few cents @gallon~nd aro cerainly no roadmap for economic recover, either. Let's work together to address those isies and provide real savings for New Yark’s drivers and businesesand a teal boost for our economy. Very teuly yours, LEos Us Michael J. Elmendorf President and CEO ‘Associated General Contractors of New York State