Massachusetts transport finance commission urges larger role for tolls and road pricing

A Massachusetts Transportation Finance Commission appointed by the legislature has recommended greater reliance on toll financing, serious consideration of investor toll concessions or PPPs, and a move to statewide road pricing. It says the gas tax is a crude proxy for road pricing and that the dramatic advances in toll collection technology will make advanced pricing or road use charges (RUCs) more efficient and fair.

"The Commonwealth (of Massachusetts) should move to a system of direct road user fees as the principal source of transportation funding using modern (toll collection) technology," the commission says.

Meanwhile it suggests greatly expanded responsibilities and revenue raising opportunities for the Massachusetts Turnpike Authority:

- transfer of the MassPort's Tobin toll bridge to the Turnpike

- reinstatement of car tolls on the western segment of the Turnpike or some other method of restoring the revenues of the mainline of the Turnpike West

- tolls on the I-93 north-south segment of the Big Dig tunnels

- Turnpike operation of several spur expressways presently looked after by Mass Highways including I-395 and I-291 in the Springfield area and I-84 from the Turnpike to the Connecticut state line

- toll increases on the Turnpike Extension (in Boston east of MA128) and Harbor Tunnels (Williams and Sumner)

Pending implementation of road use charges (RUCs) the commission says the gasoline/diesel tax must be increased by 11.5c/gallon and indexed to inflation annually.

"It has long been accepted that there is no such thing as a free lunch; it is time for people to acknowledge that there is no such thing as a freeway either... a healthy vibrant transportation system does not miraculously come for free. It must be paid for and its costs must not be deferred."

Also: "these actions can lead to a future that will serve both our mobility and economic growth needs. Taking these steps will require political courage, but Massachusetts cannot continue to stay on the dangerous path of underfunding and underinvestment leading to inadequate maintenance."

The commission says that reform is essential to make better use of resources. Procurement needs to be more competitive and to make use of private sector resources through PPPs or toll concessions.

The Mass Pike needs to make the Western Turnpike financially viable rather than running down reserves and deferring maintenance.

Road use charge of 5c/mile proposed

A move to direct road use charges would bring in $5.5b. The report says that the gas/diesel fuel tax will continue to lose value over time because of increasing fuel efficiency and new sources of energy. Advanced toll technology allows direct road use charges to be levied opening new options for raising revenue.

The gas and diesel tax is a "blunt instrument" the report says, because it varies from vehicle to vehicle depending on fuel efficiency and doesn't reflect the value of the road or time of travel. Massachusetts needs to start planning now for a shift to road use charges, the report says.

A 5c/mile (3c/km) road use charge on Massachusetts' interstates would net about $550m/year the report says, or $5.5b over ten years. Current Turnpike tolls on I-90 would be replaced by the road use charge on all the interstates.

Establishment group

The commission chaired by consultant Stephen J Silveira comprised a collection of leading Boston establishment figures including James Aloisi a former Turnpike chief attorney, Joseph C Sullivan a former chair of the Joint Legislative Committee on Transportgation, Michael Widmer president of the state taxpayers association, and representatives of leading lobby groups.

TERMINOLOGY: The Commission uses the term "road useR charges" unfortunately. Charges on road users include the gas tax, diesel fuel tax, motor registration, license fees, special taxes on tires and a host of other imposts on road users or motorists of which tolls are just one. The commission mean "road use charges" (RUC) or charges for the use of roads. Tolls of course are the pre-eminent road use charge, but the notion of levying charges for use of roads more widely and using new technologies such as satellite location devices has led to the new term. 

Download the Commission report here.

TOLLROADSnews 2007-09-16 UPDATED 2007-09-17