Maine Turnpike moving to advance toll increase to sustain funds in face of reduced traffic

Maine Turnpike Authority (MeTA) is moving to raise tolls earlier than previously planned to have the funds to sustain its program of highway and bridge rehabilitation in the face of less traffic.  They are looking to raise an extra $20m/year over current revenues of $83m now - an increase of 24% by our calculation.

Maine tolls have been unchanged since February 2005, during which time the purchasing power of the US dollar as measured by the consumer price index has declined 14%. A dollar today buys only 73% of the construction it bought in Feb 2005 according to the index of producer prices for road construction - a 27% decline in construction purchasing power.

Toll rates on the Maine Turnpike are among the cheapest ten in the US currently at 3.76c/mile (2.34c/km) for cars and 15.1c/mile (9.4c/km) for typical five-axle tractor trailers. Drivers with Maine E-ZPass get unlimited use for a quarterly fee, providing an average discount on cash and out-of-state E-Zpass of 58%. Truckers with Maine E-ZPass get volume discounts peaking at 20%+$35 off for monthly bills of $300+.

If tolls were increased by 24%  the average per mile toll would rise from 3.76c (2.34c/km) to 4.66c (2.9c/km) for cars and from 15.1c (9.4c/km) to 18.7c/mile (11.6c/km) for tractor trailers.  

Executive Director of MeTA Paul Violette says in a statement:

"No one likes a toll increase, but we don’t do anyone a favor by allowing Maine’s most important highway and its bridges to deteriorate to a point where safety is compromised and repairs become even more expensive. Our 20-year plan called for a toll increase in 2010, but the perfect storm of skyrocketing construction costs, declining toll revenues and collapse of the financial markets may require that we advance it by one year."

MeTA in its bond documents promises bond investors to maintain the tollroad to a standard that will enable it to operate efficiently and safely, so it can continue to  generate adequate revenues.

Most of the 176 bridges on the Maine Turnpike were built in the eight years between 1947 and 1955.  The lifespan of these bridges was designed at 50-70 years, depending on wear and tear on each structure.  That means nearly all of the bridges are due for major rehabilitation 1995 to 2025. In the mid-1990s MeTA began a bridge rehabilitation program that has fixed 80 of the 176, leaving 96 bridge projects to be completed by 2025 -six bridges a year.

2009 to 2013 the Authority wants to rehab 25-30 bridges and six interchanges, and repave 80km (50 miles) of highway.

The great financial crisis is costing MeTA. Downgrade of surety bonds from AAA rating will cost it an estimated $12m next year.

Other costs have risen hugely  2005 to 2008 :

- overall construction costs up 38%

- anti-ice salts up 83%

- paving materials up 82%

- diesel fuel for Turnpike trucks up 117%


The Turnpike is citing various economies made in the context of the proposed toll increase:

- staff reductions saving $3.2m this year

- $4m more savings in operating budget in 2009

Most of the economies are attributed to  improvements in toll collection via Maine E-ZPass.

Traffic volumes in 2008 are forecast by MeTA to be down for the first time in the tollroad's 61 year history - by around 2%.

Toll transactions on the Maine Turnpike are about 83m/year (227k/day) covering about 63.4m trips (174k/day) and generating $83m/year in toll revenues.

The Turnpike has 18 interchanges most with ramp toll points and three barrier toll points. The original 45 miles (72km) from near the New Hampshire border to Portland opened in 1947 and was widened to 3 lanes each direction early in the decade. It is designated I-95.

64 miles (103km) Portland to Augusta were completed in 1955 and remain 2+2 lanes. 

TOLLROADSnews 2008-10-16