Mass Pike in power play with legislature - two toll increases if they don't hike gas tax $s

The Massachusetts Turnpike Authority board of directors today voted for two toll increases (March 29 and July 1) the second of which they say will be reversed if the legislature supports the Governor's proposed 19c gas tax hike or otherwise votes substitute funds. Approved today in a contentious meeting were toll increases of 25% by in-state 'FAST LANE' transponder, 20% cash or out-of-state E-ZPass transponder for cars at the two mainline toll points of the metro-Boston segment of the Turnpike, and 67% Mass transponder 57% cash or out-of-state transponder at the harbor tunnels to go into effect March 29.

A second phase of toll increases were scheduled for July 1. They'd bring the total increase in tolls to 60%/50% at the Turnpike metro toll points and 100% (a doubling) at the harbor tunnels. The toll increases are presented in the table nearby.

"Should additional state assistance become available  to meet recommended revenue requirements prior to implementation of Phase 2 (the July 1 increases) the Authority may take action to eliminate the July 1 increase," a summary sheet for today's meeting says.

Governor Patrick last week released a plan in which 4c of a 19c proposed increase in the gasoline/diesel tax would go to the Turnpike. Each cent a gallon of motor fuel tax is estimated to raise around $25m so the Governor's plan would generate about $100m/year - about the equivalent of the toll increases approved today. That would raise the revenues of the metro-Boston section of the Turnpike from around $150m/yr now to $250m/yr.

The western turnpike from MA128 out has separate accounts and garners about $115m/year.It is not affected by today's increases.

Staff said that without a toll increase the authority's metro-Boston section:

- won't be able to meet debt service requirements beginning this financial year

- will be unable to cover operating costs and debt service

The revenue is needed to keep the Turnpike's $2.2b of metro bonds out of junk bond status, cover operating and debt service and provide for a minimal capital program for rehabilitation of $21m to $78m/year through 2014, the staff memo said.

Debt service on borrowings of more than $2b incurred by the Turnpike to build the untolled Big Dig is rising to sharply, a major factor in the Turnpike's financial crisis.

Alternative proposed by minority director Connaughton

Mary Connaughton, the director who voted against the toll increases as adopted, proposed cashless tolls at two of the Big Dig ramps and restoration of tolling at West Newton combined with smaller toll increases at the mainline toll points. She also proposed a more rapid move toward all-electronic tolling to reduce costs.

Executive director Alan LeBovidge has been absent in the past week and missed today's meeting, leading to suggestions he may be stepping down from his position. Jim Aloisi state secretary of transportation and chairman of the Turnpike dominated today's session.

TOLLROADSnews 2009-02-24