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JUNE 23, 2010 | Testimony by MATTHEW BROUILLETTE
More Reforms Before More Revenue in Transportation
Testimony before the Senate Transportation Committee
Good morning and thank you Chairman Rafferty for the invitation to testify before your committee and for your consideration of our policy solutions to help address Pennsylvania's transportation infrastructure funding challenges. While many in this building and in the transportation industry view Pennsylvania's transportation infrastructu
MAY 3, 2010 | Policy Points by COMMONWEALTH FOUNDATION
Transportation Special Session Survival Guide
Gov. Rendell has called a special session of the Pennsylvania General Assembly to discuss transportation funding. Here are some resources on financing and managing Pennsylvania's transportation infrastructure.
APRIL 14, 2010 | Commentary by MATTHEW BROUILLETTE, NATHAN BENEFIELD
Transportation Funding Solutions Require Reforms and Reprioritization
Now that the federal government has rejected the ill-conceived plan to toll I-80 for a third, and supposedly final time, Gov. Rendell and the General Assembly must implement serious solutions to the Commonwealth's transportation funding challenges.
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JULY 29, 2010
Tough Questions for Pennsylvania Turnpike Commission
The PA Turnpike Commission (PTC) testified before the Senate Transportation Committee during this summer's special session on transportation funding. Most senators on the committee expressed concern on several aspects regarding the PTC.
Senators inquired about the new toll increase, 3% for E-ZPass users and 10% for cash paying drivers, starting January 2, 2011. Specifically, Sen. Gordner asked about news that the new toll increases will make Pennsylvania the most costly in the nation. PTC CEO Joe Brimmeier said these claims are false, and that 14 states have costlier roads.
What Brimmeier neglected to mention was the Pennsylvania Turnpike will in fact become the most expensive long toll road (roads 100 miles or longer) in the nation. It is true that some states have more expensive toll facilities, but those are limited to short range highways spurs and bridges. The Turnpike will cost 8.5 cents per mile after the toll increases.
The PTC is also $6.5 billion in debt, a debt that has nearly tripled in the last three years. Last month, Moody's downgraded its rating on some Turnpike bonds, and issued a negative outlook due to rising debt. Standard and Poor's also issued an analysis warning that steep increases to tolls will create public and political backlash. The CFO said the Turnpike has taken steps to address the bond issues that were not reflected at the time of Moody's downgrading.
Still, Sen. Earll said the debt gives her the "heebie jeebies" and that the Senate Transportation Committee will need to maintain pressure on the PTC, and evaluate whether administrative overhead is in line with the overall budget.
Both Earll and the committee chairman, Sen. Rafferty, questioned some of PTC positions with high salaries and ambiguous names, asking about their purpose. The PTC has been successful in eliminating 15 management positions and 180 collector positions, but still has nearly 2,100 employees, and still has many more workers per mile than PennDOT.
The PTC has a long history of corruption dealing with patronage, inefficiency, and litigation.
To be fair to the PTC, the commission has made some improvements, which several of the senators attributed to talks of privatizing the Turnpike (the PTC was scared into an attempt at efficiency). The Commonwealth Foundation has touted the benefits of a Turnpike lease in the past. Some steps the PTC is taking to "act more like a private business" (in the words of the CEO) include:
- Outsourcing its plaza service to HMS Host and Sunoco, which is saving the expense of $170 million to build new service plazas.
- A partnership with State Farm to enhance road safety through the "State Farm Safety Patrol." State Farm has paid to brand PTC-owned and operated safety vehicles.
- A partnership with TransCore, to operate the "back-office" operations of the E-ZPass accounts.
- Becoming more transparent through the 2008 introduction of an Electronic Bidding System. Bids are advertised on the Turnpike website.
Many senators reiterated the necessity of having more frequent meetings with the Pennsylvania Turnpike Commission in order to promote progress and observe the debt situation.
posted by NATALIE ROGOL | 11:07 AM | 0 comment
JULY 15, 2010
PA Turnpike to Hike Tolls on Cash Payers by 10%
The Pennsylvania Turnpike Commission (PTC) announced yesterday that it would be increasing tolls by 10% on cash payers and by 3% on E-Z Pass holders, beginning in January. This follows a 25% increase in Jan. 2009 and a 3% across-the-board increase in Jan. 2010.
From the AP:
The Turnpike Commission voted Tuesday to increase rates 10 percent for cash customers but 3 percent for E-ZPass users, or about two-thirds of all turnpike vehicles.
When the rates take effect Jan. 2, it will be the first time that E-ZPass users will pay less than others.
The turnpike has increased rates seven times in 70 years, including twice in the last year and a half. Tolls rose 3 percent at the start of this year after rising 25 percent in January 2009. The higher fees will produce an estimated $35 million a year.
posted by NATHAN BENEFIELD | 08:33 AM | 0 comment
MARCH 1, 2010
Transportation Industry Misleads on I-80 Tolling
A couple of recent editorials in favor of the Pennsylvania Turnpike Commission's plan to toll I-80 - both by transportation industry insiders - gives some misleading info. Peter Javsicas of Pennsylvanians for Transportation Solutions has a Patriot News piece claiming I-80 tolls won't be used for transit.
But the state Mass Transit Trust Fund will receive $410 million in FY 2010-11 (and increasing amounts in future years) from the Turnpike Commission under Act 44 if I-80 is tolled, and only $250 million without I-80 tolls. That's $160 million-plus that mass transit gets, only if I-80 is tolled. Sure, they might create separate checking accounts, but the bottom line is that the push to toll I-80 is driven, in large part, by the desire to subsidize underperforming and inefficient mass transit agencies.
Jim Scheiner, a former PennDOT official, also has a letter in the Patriot News, citing the benefits of the tolling plan for I-80 drivers. Among his claims are that the proposal would spend "$2.5 billion over 10 years to upgrade I-80." Of course, this leaves out the facts that:
- Pennsylvania would have spent $1.4 billion in that time on I-80 without Act 44
- I-80 drivers will pay $5.3 billion in tolls over that time
- $2.6 billion from I-80 tolls go towards payments to PennDOT over that time
- A 2005 PennDOT study recommended against tolling I-80 because
- The "deteriorated condition" of the road had been improved
- The "benefits to users of an I-80 toll road would be insignificant for a considerable period of time"
We have identified several alternatives to tolling I-80, including repealing prevailing wage laws and using public-private partnerships to reduce taxpayer cost and improve the quality of services. However, as John Micek of the Morning Call writes, the state has no "Plan B" if and when the federal government rejects I-80 tolling.
posted by NATHAN BENEFIELD | 09:16 AM | 0 comment
