NJ Turnpike board endorses state treasury's doubling of tolls over four years

The board of the New Jersey Turnpike Authority voted unanimously today to raise tolls around 40% immediately and another 50% in 2012. A similar 50% toll hike now was voted today by the South Jersey Transportation Authority, operator of the Atlantic City Expressway.

Though formally presented as coming out of the toll authorities both moves were an initiative of the governor's office and the state treasury, which retained the traffic and revenue consultants - Steer Davies Gleave - to run the numbers to estimate the toll increases needed.

The Governor's transportation secretary Kris Kolluri is also chairman of the Turnpike Authority and the South Jersey toller.

The New Jersey Turnpike's toll increases were built around the revenue stream needed to fund $1.25 billion of the state's contribution to a new rail transit tunnel under the Hudson River to Penn Station New York, as well as a $7 billion 10-year capital program for the Turnpike proper and its Garden State Parkway subsidiary.

Cash and peak hour transponder tolls on the Turnpike, which is a trip toll facility, rise 42% now and 50% in 2012. Tolls presently around 5.2c/mile rise now to 7.4c/mile and to 11.4c/mile in 2012 at which time toll rates will be 2.17 x current rates. (3.2c/km, 4.6c/km, 7.1c/km)

Toll increases

On the Turnpike the average car trip is described as 22.9 miles (37km) and is presently $1.20. That now goes to $1.70 and to $2.60 in 2012.

On the Garden State Parkway, a point toll facility, the situation is more complicated because perversely there's one more toll point going northbound (7) than going southbound (6). Going the length 166 miles (267km) of the Parkway northbound is $4.20 or 2.52c/mile whereas going the same length of the Parkway southbound is only 6 toll points and a total of $3.50 or 2.1c/mile. Averaging both directions the average toll is 2.3c/mile.

That will be increasing 43% now to 3.3c/mile and by 50% in 2012 to 4.9c/mile. (1.44c/km, 2c/km, 3.06c/km). Tolls on the Parkway are quoted as average tolls. The average trip is 12.86 miles (20.7km) and the toll now 35c will rise to 50c and in 2012 to 75c.

Tolls for other classes of vehicles go up proportionately on the two tollroads.

Off-peak discounts as "relief for working families"

Off peak discounts are described by the Authority as "Providing Relief to Working Families" in the Turnpike's presentation reproduced nearby. This is odd since working families normally have to travel to and from work in peak hours, and it is non-working people who can best take advantage of off-peak discounts.

Also the Turnpike's off-peak, transponder discounts are 25% now and will remain 25% -  keeping it the same is "relief"?

The new toll schedules are different in providing off-peak discounts to 'seniors' and to 'green' vehicles (low emissions and high mileage).

The basic rates voted today - called REVISED in the official presentation tables in red headings above - are slightly trimmed back from rates proposed 5 weeks ago.

It is unclear when they will be implemented. No agenda item was published for today's board meeting, and no minutes are available yet. Implementation is various described as in 2008 and in 2009.

No traffic and  revenue data have been published forecasting expected increases in revenue from the higher tolls, or showing how the net revenues will support the capital program.

Revenues of the Turnpike and Parkway totaled $746m last financial year based on 667.3m transactions or an average 1.83m/day. The 42 to 43% increase in toll rates seems likely to increase revenue by maybe 36%, which would make it $1,045m in the first full year in which the rates apply. If the 50% increase in rates in 2012 raised revenue 42% it would then be running at $1,440m/yr.

Tolls last rose on the Turnpike in 2000 and on the Parkway in 1989, during which time the dollar has declined in value by 27% and 77% respectively.

COMMENT: A major toll increase is long overdue, but the Turnpike Authority didn't make much of a case for the increases voted. It hasn't published any of the forecasts that supposedly underlie the proposal.

The rail transit tunnel to Penn Station should be paid for by the principal beneficiaries - New Jersey transit riders - in higher fares, not by Turnpike drivers. it is also unclear what justification there is for keeping Parkway tolls so low relative to Turnpike tolls.

The oldies and green discounts are a mistake - a pandering to special interests that will add to administrative costs.

South Jersey's Atlantic City Expressway follows suit

Also in a vote today the South Jersey Transportation Authority raised tolls on the Atlantic City Expressway - also by 50% - but without any commitments to any later toll increases.

The Egg Harbor mainline plaza toll for cars will rise from $2 to $3 and the Pleasantville plaza near Atlantic City from 50c to 75c.  Ramp tolls will also go up to 75c from 50c. Tolls for other vehicle classes go up proportionately.

Major new work to be financed with extra revenues is a $200m third laning of the westbound roadway. The eastbound is already 3 lanes.

TOLLROADSnews 2008-10-10