Click here to read the comptroller's audit report

BUFFALO -- The New York state comptroller released a report Sunday urging the state Thruway Authority to call off a toll hike that the agency planned to apply in July.

Thomas DiNapoli's audit of the Thruway Authority says the agency should put off creating any future hikes until it's had a chance to conduct a thorough analysis of its expenses, operations and projects.

"The Thruway is too important to the upstate economy to unnecessarily raise tolls and drive up the cost of everything from milk to heating oil, not to mention the impact on commuters," DiNapoli said in a written statement. "The Thruway Authority manages the roads well, but it could manage its finances a whole lot better."

"We believe the audit as a whole indicates that we do need a toll increase," said Michael Fleischer, executive director of the Thruway Authority.

The audit examined the calculations used in justifying proposed toll increases in July 2008, January 2009, July 2009 and January 2010.

The agency's board of directors had endorsed the spending plans based on the roughly $375 million officials said the higher tolls would bring in through 2011.

DiNapoli's report included a number of recommendations, including: cutting costs; using a collection agency to collect unpaid E-Z Pass tolls; prioritizing capital projects and deferring some temporarily.

The agency is reducing positions and trying to reduce costs, Fleischer said. The Thruway Authority has also controlled its growth at 3.2 percent — a slower rate than the state government, he said.

"We disagree with the financial impact of the recommendations ... we believe it would be just a fraction of the revenue necessary to continue making the proper investments in the highway," Fleischer said.

The comptroller's audit suggested budgeting for increased federal aid — indicating the agency had estimated receiving only $4.9 million in federal highway funds per year. DiNapoli's report argues that the authority could "conservatively estimate" an additional $125.3 million in federal funding between 2008 and 2012.

But Fleischer said that money comes in through the Department of Transportation, and if the it was directed to the authority it would come at the expense of the DOT or local programs.

The comptroller's office plans to continue auditing the Thruway Authority's operations and finances this year.

Until 2005 the Thruway Authority has increased tolls sporadically; in 1959, 1970, 1975, 1980 and 1988. Since 2005 the thruway has increased tolls twice and has proposed four more hikes.

The most recent toll hike, implemented earlier this month, could have been avoided, DiNapoli said.

But the money that increase will bring was already guaranteed to pay for $2 billion the Thruway Authority has borrowed.

DiNapoli also recommended removing the canal system from the Thruway Authority's operations and developing a long-term solution for financing it.

The audit, which under normal circumstances could take up to 10 months, was completed in eight weeks after members of the state Legislature objected to the toll hikes.

Democratic Assembly Speaker Sheldon Silver had previously asked the Thruway Authority to delay the toll increases that were introduced in January — at least until DiNapoli completed his audit.

"Now that the audits have been released, we know that toll increases are not necessary," Silver said in a written statement. "Given the audit findings, we repeat our call for the members of the Thruway Authority board to step down so that the governor can appoint individuals who will focus on innovative ways to control costs and deliver services."