Governor says Pennsylvania Turnpike Commission "can't win by stalling" (but maybe they can)

Governor Ed Rendell said Monday that the Turnpike Commission "can't win this by stalling." In a memo to Turnpike CEO Joseph Brimmeier, as reported by Brad Bumstead in the Pittsburgh Tribune this morning, the Governor wrote: "I believe it is time for the Commonwealth (of Pennsylvania) to get an answer one way or the other from the US Department of Transportation regarding whether tolls on Interstate 80 will be allowed."

Governor Rendell has set several deadlines for submission of the answers or "reapplication" to toll I-80. The Commission has ignored them. As far back as mid-December the feds raised about a dozen issues for answer or explanation before they would further consider the application. Six months later they are still composing their response.

The Tribune this morning also quotes Barry Schoch, project manager for I-80 Tolling at the Turnpike Commission as saying that they still need "a couple of months" to gather information for the feds.

Among the issues they are trying to resolve in consultation with local officials, Schoch is quoted, is the location of ten toll points along the now free interstate.

The Abertis-Citi offer of $12.8m for a 75 lease of the Turnpike is only legally binding until June 20.

The Turnpike Commission only needs to stall for 18 days more to leave that offer hanging. Beyond June 20 the state only has an offer extended by mutual consent.

The Governor by himself has no legal power to get the Turnpike Commission to do anything since it operates under the control of its seven person board of commissioners and there seems to be a majority of four solid against him - chairman Mitchell Rubin, a lawyer with gambling properties who is rarely heard from, Timothy J Carson vice-chairman and a young Philadelphia lawyer who is frequently heard from, Secretary-treasurer J Willliam Lincoln and Pasquale Deon.

Other board commissions are the governor himself, the lieutenant governor and his secretary of transportation, but they clearly are outvoted.

The Governor says the Commission can't win by stalling, but it looks like they are doing just that. The legislature won't consider the enabling legislation for the lease without knowing if I-80 can be tolled. The longer the Turnpike Commission spends on its response to the Feds the longer the I-80 toll revenues remain an uncertainty.

If I-80 can't be tolled the Turnpike only provides $450m/year to the state for transportation vs around $950m/year with I-80 tolling under state law 44 and the public-public concession contract signed by the Turnpike last summer.

$12.8b managed by the state's pension fund managers would yield $1,100m/year on its 20 year record, lease supporters say. Even invested in US Treasuries it would beat the Act 44 payments in the absence of I-80 tolls.

But mere possibility of I-80 tolls leaves alive the hope that the Turnpike Commission can generate revenues close to those of a lease.

TOLLROADSnews 2008-06-03

CORRECTION: We're told the Turnpike's website which we relied on (see right) is misleading and that the governor and lietenant governor are wrongly listed as members. in fact the Commission comrpises only the other five members.  2008-06-04 17:30