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Act 44
Act 44 was passed by the Pennsylvania legislature in July 2007, establishing for the first time ever, an inflation sensitive, long-term funding stream to address Pennsylvania’s transportation funding crisis. The Act provides more than $116 billion over a 50-year period for transportation maintenance and improvements in Pennsylvania by:
Converting I-80 to a tolled facility,
Increasing existing Mainline Turnpike Tolls, and
Issuing Monetization Bonds based on future toll revenues.
The anticipated revenue generated from Act 44 satisfies 95% of the needed funding identified in the Governor’s Transportation Funding and Reform Commission Report (November 2006). A majority of this funding will be used statewide to repair roads and bridges. Toll money collected on I-80 will be used to reconstruct and improve I-80 and to pay the lease payments in accordance with the PTC/PennDOT Lease Agreement. PennDOT’s federal funding compliment will remain the same, so the on average $80 million per year currently being spent on I-80 will be available for use on other interstates in the Commonwealth. In addition, all of the state’s rural and urban public transit agencies will now receive increased, stable, and performance-driven funding annually as a result of funding generated through monetization of bonds based on Mainline Turnpike toll increases. I-80 toll money will not be used for transit as specified in the PTC/PennDOT Lease Agreement.
