Penn Pike details 25% toll increases saying mission changed to supporting state roads, transit

Pennsylvania Turnpike Commission (PTC or Penn Pike) has released details of approximate 25% increases in tolls to go into effect Jan 4, 2009. The increases were foreshadowed in the summer of 2007 as part of the Turnpike's commitment to the state under Act 44 to make large annual payment to the state DOT for the support of its non-tolled roads and loss-making transit.

The toll increases and an allowance for some reduced traffic volume are expected to increase revenues from $619m to $738m in FY2010 or 19.3%. Toll rates were last increased in 2004 with the proceeds used to support the raising of capital for $1.2b for reconstruction and 3rd laning of 32 miles (51km), resurfacing of 173 miles (278km) of the turnpike, and replacement of 85 bridges.

But with the passage of Act 44 in July 2007 the Turnpike was set on a path to generating revenue to support major subsidies to state transportation. Sponsored in large part by the Turnpike the legislation also involved a 50-year concession to the Turnpike to toll I-80, which part of the scheme cannot be implemented because the terms were subsequently found by USDOT to be inconsistent with US highway law.

CEO Brimmeier says mission changed

Turnpike CEO Joseph Brimmeier said today: "The mission of America’s First Superhighway has changed, and that change is evident in every Pennsylvania county today because of the $1.2 billion we’ve already provided to PennDOT during the previous 16 months. No state has provided anywhere near this level of new funding."

His statement continued: "“Our customers need to know that the revenue from the tollbooth is now being reinvested in the Commonwealth’s transportation systems and its economy. For the first time, toll income isn’t only going back into our toll roads, but helping to fund infrastructure improvements in every corner of Pennsylvania. Toll-increase proceeds are mainly earmarked for non-Turnpike projects, so the funds generated by this increase will largely be used by PennDOT to help finance off-Turnpike road and bridge projects and the state’s 74 mass-transit operations.”

Increases detailed

The most common car toll - which the Turnpike strangely calls a 'fare' - will increase from 75c to 95c (26.7%), and for the most common truck trip the toll will rise from $6.25 to $7.85 (25.6%). Tolls will rise by similar percentages all over the system for all vehicles classes and payment modes, except on tbe recently opened Unionvoille to Brownsville segment of the Mon Fayette Expressway where the higher rates were anticipated.

CEO Brimmeier says that over three years they will be providing Act 44-funds totaling $2.5b to the state for other roads, bridges and mass-transit agencies.

“Beyond 2010, we will supply $450m per year if we don’t toll I-80 and more than $1 billion per year on average in the next decade if we do (toll I-80). In addition, we continue to make unprecedented investments in the Turnpike itself through a 10-year, $4.6b capital-improvement plan.”

Tolls are expected to be increased annually in future about in line with inflation.

Materials provided to the press:

http://www.paturnpike.com/toll/2009_tolls_press_kit_docs.aspx

TOLLROADSnews 2008-12-04