Summary: In response to a bill which would have required the DOT to undertake a pilot program to evaluate the usefulness of rubber-modified asphalt in the construction and improvement of highways, Governor Cuomo issued Veto Message No. 78. In this message, the DOT was directed to: 1. Survey existing research on the use of scrap rubber in the construction and improvement of highways, 2. Recommend additional research or any other actions that may be appropriate to conduct in New York State, and 3. Estimate the economic impact of using scrap rubber in highway paving materials in New York. In response to this directive, DOT reviewed existing literature on performance and cost of rubber-modified asphalt systems, reviewed its own experience as well as that of the NYS Thruway Authority with these materials, consulted with research staff of the FHWA in Washington, DC and some of the principal investigators in this field, estimated the economic impact on paving costs in New York of using rubber in asphalt concrete, and surveyed its own field staff for experience and suggestions.