Massachusetts legislators file bill to seize toll setting power from Turnpike board and freeze tolls

A bill has been filed in the Massachusetts state legislature to block toll increases approved on Monday by the Turnpike Authority board. The bill SB2086 is titled "An Act relative to freezing the Massachusetts Turnpike tolls at current levels."

It would strike down the present power of the Turnpike Authority board "to fix and revise from time to time" toll rates, declare tolls fixed at rates in place on Jan 1, 2003 (the same in essence since 1999) while only allowing toll rates in the future to be raised "to accommodate increases in the Consumer Price Index."

Sponsor of the bill in the state house, Rep Steven M Walsh (Dem-Lynn), says "fairness and equity" are the issue.

Walsh is further quoted in the Boston Herald: "It’s time we see a comprehensive plan as to how revenue can be raised without unfairly burdening the working families of MetroWest and the North Shore."

In the Senate the bill is sponsored by the Majority leader Frederick E Berry (Dem - Peabody) who is quoted by AP as saying the cost of driving from the North Shore is "out of control."

The AP report says that legislators plan to freeze tolls until a legislative committee makes recommendations on future needs and funding.

SB2086 has no such a proviso, and does not mention any legislative panel or recommendations on needs and financing.

They've already forgotten - or never read - "Transportation Finance in Massachusetts"

Only six weeks ago ago an expert commission on transportation finance in Massachusetts reported on the need for higher toll rates, and also urged a per-mile traveled toll on all highways in the state.

This Massachusetts Transportation Finance Commission was established by the legislature in 2004, and its second Recommendations report came out mid-September, less than two months ago.

Here is our summary of it: http://www.tollroadsnews.com/node/3139

SB2086 is totally at odds with that report and its theme that considerable increases in revenue are needed for Massachusetts roads and that user fees (tolls and road pricing) are the best way to raise needed funds. Yet apparently the Berrys and Walshes want to ignore the report they have, and to freeze tolls at 1999 levels, while they put in process yet another two or three year study.

Paralysis via analysis?

Maybe it's all political posturing

It is unclear whether the SB2086 bill will be seriously pushed.

The Turnpike board was divided over the toll increase and the Monday vote in favor of the approx 18%, $28m increases was 3/2. However the division was not on whether the extra revenue was needed, just on the distribution of tolls. The two who voted against the increases wanted them differently distributed, but did not argue with the need for the extra revenue.

In order to avoid defaulting on bond covenants, and to refinance short term swap instruments the $28m toll increase is the minimum needed, Turnpike staff have said. Bernard Cohen, the Turnpike chairman and secretary of transportation, has said that the increases voted Monday are a stopgap measures and more increases will be needed before long.

Tolls were last increased in 1999.

You wouldn't think legislators would want to be blamed for causing the Turnpike to default on its debt covenants, or be unable to refinance.

More likely they just want to be seen as striking a pose against higher tolls, though posturing can take on a life of its own.

If the Turnpike Authority board is deprived of toll setting powers it becomes impotent, and rather pointless. Independent toll authority boards were set up in the first place to insulate toll rate setting to some degree from political opportunism.

Borrowing on the pledge of a revenue stream becomes difficult if lenders see politicians as able to curtail toll revenues whenever they find it politically expedient.

Governor Deval Patrick might well veto the legislation for this reason. However it remains to be seen whether he could be over-ridden.

We suspect this is posturing, or the beginning of bargaining of some kind.

Here is a copy of SB2086

NOTE ON INFLATION: Since tolls were last set in Massachusetts in 1999 inflation as measured by the consumer price index has been around 24% (1999 to 2006 21%). The 25/50c toll increases voted last Monday that Berry calls "out of control" don't even restore the purchasing power of tolls in 1999. He probably doesn't realize it - these politicians are all about soundbites, numbers are beyond them - but his bill's "accommodating increases in inflation" would actually have toll rates higher by now than the increases he is opposing.

TOLLROADSnews 2007-11-02 ADDITIONS 2007-11-03