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The State Turnpike Commission (STC) was established by the state to construct, operate, and maintain the state turnpike system. The STC was created as an instrumentality of the state as a separate legal entity with powers to issue revenue bonds payable from tolls and other revenues. The governing body of the STC consists of eight members appointed by the governor for fixed 10 year terms and three state officials serving ex officio the elected state treasurer, the elected state comptroller, and the appointed superintendent of highways. The STC is financially self sufficient, and the state cannot access its assets or surpluses, nor is it obligated to subsidize deficits of the STC.The STC sets its own rates and approves its own budget. The bond agreement states that the debt of the STC is not an obligation of the state. However state statutes authorize the state budget director to include in the budget submitted to the legislature an amount sufficient to make the principal and interest payments on the STC bonds in the event STC revenues are insufficient to meet debt service requirements. Is the STC a component unit of the state? If so, how should the state report the financial activities of the STC? (GASB Statement)
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