Politicos Propose Using Bank Funds for TZ Bridge Project

NYACK, NY—At a press conference staged on the Hudson River shoreline on Monday with the new Tappan Zee Bridge construction in the background, Westchester County Executive Robert P. Astorino and Rockland County Executive Ed Day called on Gov. Andrew Cuomo to use a portion of the approximately $5 billion in bank settlement funds the state is receiving to pay for the $3.9-billion new bridge.

Specifically, Astorino and Day are advising Gov. Cuomo to earmark $1.95 billion of the bank settlement funds the state has received from BNP Paribas SA, Credit Suisse Group and others to help pay for the bridge project and help reduce toll increases that will be necessary to help fund the construction of the new span.

The bank funds come from settlements reached between a number of major financial institutions and the New York State Attorney General over alleged improprieties. For example, New York State is receiving $2.24 billion of a negotiated $8.9-billion settlement reached between BNP Paribus and U.S. regulators over the bank's concealment of more than $190 billion in transactions between 2002 and 2012 for clients subject to U.S. sanctions, including Sudan, Iran, and Cuba.

"The bank settlement funds should be spent entirely on state infrastructure projects and not on recurring expenses, and a large portion of those funds should be used to help pay for the new Tappan Zee, a bridge of critical regional and statewide economic importance," said Astorino.

“In the absence of anything definite from Albany, County Executive Astorino and I worked together to develop a Tappan Zee Bridge funding plan of our own: a reasonable, workable and smart solution,” Day said. “Our commuters and businesses simply cannot afford the burden of even-higher tolls. Our idea to use a portion of the state's bank settlement money to fund bridge construction will keep the economic wheels moving in both Rockland and Westchester counties.”

The two county executives also agreed that the bank settlement monies should be earmarked for pressing infrastructure needs in New York State, but should not be used to fund any MTA-related projects.

Astorino and Day said they came up with the $1.95 billion figure because it was half the cost of the new $3.9-billion bridge and because it represents about 40% of the bank settlement funds. They said 40% was fair rate considering the bridge's far-reaching impact and importance as a key bridge between Upstate New York and Westchester, New York City and Long Island.

More than 138,000 vehicles cross the New York State Thruway Authority's Tappan Zee Bridge every day making it the third most traveled bridge in New York State after the George Washington (276,150) and Verrazano Narrows (182,676). The GW bridge is  controlled by the Port Authority of New York and New Jersey, while the Verrazano is owned by the MTA.

Astorino and Day said that without using a substantial portion of the bank settlement, motorists on the entire Thruway—not just on the Tappan Zee Bridge—would face significant toll hikes.

“The Tappan Zee Bridge toll hike would be sky high but drivers throughout the state would see big toll hikes as well. This all can be prevented by doing the smart and sensible thing and that's to make a sizable investment of the bank settlement funds into this project,” Astorino said. “The money is right there. We just need the governor to resist the temptation to spread the wealth to special interests and recurring expenses. With infrastructure investments everyone benefits.”

Astorino and Day sent their proposal to Gov. Cuomo in a formal letter and have also held discussions with state legislators on the issue. The bridge project has received a $1.6-billion Transportation Infrastructure Finance and Innovation Act (TIFIA) low-interest loan from the US Department of Transportation.