Philly bridges get 60% toll increases plus 2-yearly COLA

Delaware River Port Authority (DRPA) has approved strong toll increases to go into effect next month and in Sept 2010, and cost-of-living or inflation increases on a two-yearly basis thereafter. The board of directors approved the strong toll plan unanimously this morning, despite some public criticism.

The 2008 increase is 33% and the 2010 increase is 25%.

Car tolls on the four bridges which connect the Philadelphia side of the Delaware River with the south Jersey suburbs opposite will rise by a dollar from $3 for cars next month to $4 and another dollar in two years time to $5. There are proportional toll increases for other classes of vehicles. Trucks pay heavily at $4.50 per axle - a typical 5-axle tractor-trailer now pays $22.50. That will go to $30 next month and to $37.50 Sept 2010.

In addition, existing generous commuter plans are being phased out. At present there's an $18 rebate for 18 trips per month with an E-ZPass transponder. The commuter credit will be reduced to $12 this Sept, to $6 Sept 2009 and ended Sept 2010.

Commercial discounts are being eliminated.

But there's a "green pass discount" being established to operate for two years - vehicles meeting the California Super Ultra Low Emission standard and getting 45mpg qualify for $1 off tolls.

Oldies get a discount on DRPA bridges though the details of the so-called 'senior citizen' discount plan are being changed. (What about those of us who are senior non-citizens, senior aliens? - now there's a question to aggravate a toll collector)

There is no estimate of the overall effect of all these changes on toll revenues.

COLA loose

The subsequent two-yearly cost of living or inflation adjustment has been left vague and because of the continuation of cash collection it will probably be rounded to the nearest quarter. California tollers increase tolls very regularly. In Florida a law allows toll authorities to raise tolls with inflation. The Pennsylvania Turnpike Commission has announced a policy of annual toll adjustments after a 25% increase next year. New York tollers are increasing their tolls more frequently.

However most US toll authorities only increase tolls very irregularly, going for long periods with inflation eating away at the buying power of their revenue stream. West Virginia has the record in this regard. Tolls have remained frozen since 1981.

The last general toll increase at DRPA was Jan 2000 when the car toll went from $2 to $3. Jan 2004 DRPA eliminated a 10% discount for occasional users with E-ZPass transponders increasing revenue.

Tolls are only levied in one direction of travel on DRPA bridges - westbound - so return trips are free.

New Jersey Gov has power to veto

Being a bistate agency DRPA has eight New Jersey commissioners and eight Pennsylvania commissioners, appointed by the respective governors.

An odd twist to the powers of DRPA is that the Governor of New Jersey has ten business days from receipt of the minutes of the DRPA board meeting to exercise a veto of the votes taken by the New Jersey commissioners. If he chose to exercise that veto he would leave the vote 8 in favor of the toll increases, and without a majority in favor.

There is no indication Gov Corzine has any inclination to exercise a veto however. Corzine of course favors much larger increases in tolls on his state's toll facilities than he has been able to persuade his legislators to support.

Pennsylvania law gives their governor no power to limit the votes of his state's DRPA commissioners.

Justification

Major argument used for the toll increases is the need to support debt service on a $1.1b capital program.

Delaware River Toll Bridge Authority really

The only justification for the Port in the authority's title is DRPA's operation of a cruise ship berth that sees a cruise ship depart about every two or three weeks! DRPA does run an electric train service called PATCO from central Philadelphia to the south Jersey suburbs, a single line that carries 30k daily average passengers, fewer than in the 1990s. Those fares, already heavily subsidized are being increased by only 10% this Sept and another 10% Sept 2010.

DRPA garners 90% of its revenue or $196m annually from bridge tolls. This is based on 301k vehicle trips/day over the four toll bridges, two of which the Ben Franklin and the Walt Whitman are pretty much in downtown Philadelphia, and the other two of which are some miles upstream and downstream of center city.

Transit - the welfare bum on the bridges

Even though the one rail line only carries less than a tenth the passengers of the toll bridges (and no freight) it costs almost as much to operate as the bridges ($42.5m trains vs $52.3m bridges).

The operating cost per trip on the train is $4.51 and the average fare $2.02 for a subsidy of $2.50 per trip. By contrast the operating cost of a trip over the bridge is 47c compared to the $1.78 average toll/trip, making the operating profit per bridge trip of $1.31.

Operating losses on PATCO rail last year were $23.5m against an operating profit on the four bridges of $143.8m. (see table nearby)

DRPA's capital program is split about 60% bridges 40% trains.

With a 60% increase in tolls in two years vs a 22% increase in train fares the cross-subsidy from bridges to trains is increasing.

There are similar heavy tolls-to-transit cross-subsidies at MTA Bridges and Tunnels in New York City, at PANYNJ on the Hudson River crossings, and at the Golden Gate Bridge.

http://www.drpa.org/

TOLLROADSnews 2008-08-20