Rendell admin says Penn Pike lease will control tolls and maintain present job guarantees

Rendell administration officials say they will be seeking proposals shortly for a longterm lease and concession on the Pennsylvania Turnpike based on limits set for the Turnpike Commission.

The concessionaires will bid on a concession similar to Act 44 that limits toll increases to  inflation indexation or 3%/yr on an annual basis after an initial 25% increase in tolls.

As to job security the concessionaire will be bound to respect union contracts. The Turnpike Commission has about 2,270 employees of whom about 200 are classified as managers and 2,070 workers. Of the 2,070 workers about 1,800 are union members, whose terms and conditions are covered by union contracts.

The contracts are generally for three year terms.

Gov Rendell in comments yesterday said toll increases by a concessionaire "must track" what the Turnpike Commission would do under Act 44, law passed last summer.

"So there's no need for gnashing of teeth along the turnpike," Gov Rendell said of a concession. Private operators would gain their profit by management savings and improved efficiency.

Matthew Brouillette, president of the Commonwealth Foundation, a free market think tank in Harrisburg says: "Putting ceilings on toll hikes eliminates the unfounded fears being fomented by the Turnpike Commission and its lobbyists in defense of their patronage playground."

The legislature still has to pass enabling legislation to allow the Turnpike to be leased in a toll concession, but sentiment seems to be moving in favor of that in Harrisburg. Gov Rendell's plan is to get bids and present the best to the legislature.

TOLLROADSnews 2008-01-23