As part of raising the proposed $1 billion Upstate Revitalization Fund in New York Governor Eliot Spitzer's Executive Budget, Spitzer has requested that surcharges on all automobile policies issued in New York be raised by $15; the current surcharge is $5. It is estimated that the $15 increase will generate approximately $140 million in funds. Spitzer’s reason for increasing the surcharge is to raise money to aid with bridge maintenance and repairs.
Many lawmakers, including Senate Transportation Committee Chairman Thomas Libous, have criticized the proposal alleging that an increase would be “unfair.” Libous questioned the surcharge proposal because he believes that over the years millions of dollars earmarked for bridge maintenance and repair have been diverted from the Dedicated Highway and Bridge Trust Fund for purposes not related to bridge maintenance and repairs.
We will continue to monitor this proposal and provide further updates at InsureReinsure.com.
To view Governor Spitzer’s entire Upstate Revitalization Fund budget proposal, click here.