Tolling's big future in Massachusetts - transit, planners control new authority

With a reorganization of transportation governance  moving through the state legislature the Massachusetts Turnpike Authority days are numbered, but tolling could be set to blossom. The Turnpike plus the two harbor tunnels along with MassPort's Tobin bridge will be transferred to a new Massachusetts Surface Transportation Authority (MSTA or 'MassSurfTrans'?) whose board of directors will be dominated by city planners, rail transit officials and environmentalists.

The bill creating MSTA, Senate Bill 10 (SB10) passed the full senate 39/1 last week and is being considered this week by the lower house. The new authority will be in need of toll revenues. Much "reform" is being promised but the details of the bill provide little scope for economies, assuring employees of existing agencies their rights will be protected.

The bill provides for no increases in motor fuel taxes.

SB10 sponsored by Senator Steven Baddour chair of the committee on transportation provides for MSTA to be controlled by a board of eleven directors lacking in any representative of motorist, trucking or other highway interests which might fight tolls, but dominated by those favoring transit who could benefit by tolls as a source of revenue and as an incentive to use transit.

MSTA could develop into a Boston version of the New York Metropolitan Transportation Authority (NYMTA) a similar multimodal agency in which transit interests dominate. NYMTA operates the most profitable toll facilities in the nation. The NYMTA's bridge and tunnel tolls are a cash cow for the NYMTA's lossmaking rail and bus services.

Toll revenue of the NYMTA this year is $1292m which produces a cash flow of about $884m. Of this $708m is transferred across to help fund loss-making transit services.

Makeup of MSTA board favors transit, won't resist tolls

According to Section 2 of Chapter 81B of SB10 the MSTA's board members will comprise:

- secretary of transportation

- secretary of administration and finance

- one proposed by the state association of transit authorities

- one proposed by the state association of regional planning agencies

- two from the Massachusetts Bay Transportation Authority or successor rail and bus transit agency

- two finance and accounting types

- one construction expert

- one representative of an environmental organization

- one expert in transportation law

The MSTA will have separate modal divisions.

Transit will be operated and developed within MSTA by a Division of Public Transit which will inherit the existing Boston area Massachusetts Bay Transportation (transit) Authority (MBTA) and smaller regional transit authorities.

The MSTA will be able to pool revenues and so will be under no discipline to operate toll facilities as a self-financing mode.  It will inherit among other powers the Turnpike Authority's power to issue bonds secured to toll revenues. 

Unimpeded discretion to set tolls

MSTA will have full discretion as to the toll rates it levies: "The authority is hereby authorized to charge and collect and from time to time fix and revise tolls...Such tolls shall not be subject to supervision, regulation, approval or disapproval by any department, division, commission, board, bureau or agency of the commonwealth or any political subdivision thereof." [Section 10 (a)]

Tolls will be fixed and adjusted "at a minimum" to cover the costs of operating, maintaining and improving the tolled facilities and servicing their debt.

MSTA is therefore not precluded from making surpluses on tolls and using them for its other transportation costs.   Pooling of funds will be through a 'Toll and Fare Stabilization Fund.'

Toll facilities will come under a Division of Roads and Bridges (Chapter 81C) which will have the powers of the present Massachusetts Highways Department including eminent domain rights to acquire land.

Arrest of toll evaders

MSTA will have the right to arrest toll evaders: "An operator of a vehicle using the turnpike, the metropolitan highway system or the state highway system who refuses to pay the toll prescribed by the authority or who evades or attempts to evade payment of the toll prescribed by the authority may be arrested without a warrant." (Section 55, paragraph 2)

Provision for detolling

Only when debt on the Turnpike is paid off and it is deemed to be in good condition by MSTA can Turnpike tolls be discontinued: "Section 56. The turnpike shall thereafter be operated and maintained free of tolls when (i) all notes and bonds issued by the authority relating to the turnpike and payable from turnpike revenues have been paid or a sufficient amount for the payment of all such notes or bonds and the interest thereon, to the maturity thereof, shall have been set aside in trust for the benefit of the holders of such notes or bonds; and (ii) the turnpike is deemed to be in good condition and repair to the satisfaction of the division.

Transfer of the Turnpike to MSTA set for July 1 2009

"The Massachusetts Turnpike Authority shall transfer the Turnpike, as defined in section 3 of chapter 81A of the General Laws, its right to collect toll revenues on the Turnpike, and all related assets, liabilities, expenses and obligations to the division of roads and bridges in the Massachusetts Surface Transportation Authority no later than July 1, 2009." (Section 54)

The Tobin Bridge and its tolling rights will be transferred to MSTA by July 1, 2010. (Section 56).

MSTA will assume all the bond debt of the Turnpike Authority. (Section 57)

Employees of Turnpike Authority come over to MSTA

SECTION 63.  "On July 1, 2009, each employee of the Massachusetts Turnpike Authority whose salary is paid out of revenue generated by the Turnpike, as defined in section 3 of chapter 81A of the General Laws, and whose salary is accounted for on the books of the Massachusetts Turnpike Authority as arising from revenue generated by the Turnpike, as so defined, shall become an employee of the Authority.  On July 1, 2010, all remaining employees of the Massachusetts Turnpike Authority shall become employees of the Authority. "

All employees transferred from the Turnpike to the MSTA will retain their existing seniority, civil service rights and will keep their existing pay rates and seniority.

"All officers and employees of the Massachusetts Turnpike Authority transferred to the service of the Authority shall be transferred without impairment of seniority, civil service status, retirement or other statutory rights of employees; without reduction in compensation or salary grade, notwithstanding any change in job titles or duties; without loss of accrued rights to holidays, sick leave, vacation and benefits; and without change in union representation." (Section 63)

TOLLROADSnews 2009-03-30