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What is Act 44 and what does it do?
This State law, passed by the General Assembly and signed into law by Governor Rendell in July 2007, is designed to address the state’s transportation funding crisis. Under Act 44, the Pennsylvania Turnpike Commission (PTC) will lease Interstate 80 from PennDOT and implement a tolling system. In addition, the PTC will raise tolls on its mainline and sell bonds based on future toll revenues. The PTC has provided payments to PennDOT for the repaio and maintenance of local roads and bridges and to help fund the state’s 73 mass transit agencies. To view the payment schedule, CLICK HERECLICK HERE.
Where does the money come from and where will it go?
Act 44 will be funded through increased tolls on the existing Pennsylvania Turnpike; new tolls authorized on Interstate 80; and the sale of Turnpike bonds. Toll revenue collected on I-80 will be reinvested in I-80. The Turnpike Commission will invest $2 billion over the next 10 years to operate, maintain and improve I-80. The remainder of the I-80 tolls will be earmarked strictly for roads and bridges around the Commonwealth.
How will you implement Act 44?
The Turnpike Commission and PennDOT are working together to implement Act 44. In October, 2007, the PTC signed a 50-year lease agreement for I-80 with PennDOT. The PTC and PennDOT have filed a Phase 1 application with the Federal Highway Administration (FHWA) seeking authorization to toll I-80 as part of a pilot program authorized in the Transportation Equity Act of the 21st Century (TEA-21). The federal review and approval process associated with Phase II of the application will take at least 12 months to complete, and the earliest tolls would be collected on I-80 is 2010.
Did the General Assembly consider other options before passing Act 44?
The General Assembly and Rendell administration considered several options to address the funding crisis before approving Act 44. Those options included a steep increase in the gasoline tax and other fees and/or taxes. Many of these options were debated on the House and Senate floor and were the subject of numerous public hearings. Ultimately, Act 44 was passed because it represents a fair and balanced approach to raising the necessary revenue. Pennsylvania’s approach will serve as a model for other states as officials come to terms with the fact that the gas tax no longer works as the principal revenue source for transportation projects.
Why weren’t there public meetings along the Corridor before Act 44 was passed?
The Legislative process is an inherently public process. Bills are proposed and debated in both houses in public sessions; votes are cast in public and widely reported and documented. While the process is open to the public and often televised statewide the process does not require public meetings on every issue. However, like any major transportation project there are many stages in the implementation process for the tolling of I-80. State legislation is the beginning of this process not the end. The Pennsylvania Turnpike Commission is beginning an extensive public outreach program which will include public meetings throughout the region before toll collection points are located, designed and constructed. The impacts of tolling will be studied and presented to the public; environmental documents will be prepared; Federal Highway Administration approval will be sought. Public input will be an important part of this process before the project can be fully implemented.
What is the transportation funding crisis?
The Transportation Funding and Reform Commission issued a report in November 2006, that confirmed a funding crisis exists for transportation facilities in the Commonwealth. The report stated that “Pennsylvania has more than twice the percentage of structurally deficient bridges than the national average, and more than a third of the 21,000 miles of state-owned secondary roads are rated poor. Pennsylvania’s state-owned bridges are on average 50 years old.” The report identified an annual need of $1.6 billion per year in additional funding for the transportation network. To review an executive summary of this report, CLICK HERE. Act 44 is designed to begin addressing the need to repair these roads and bridges while making critical investments in the Commonwealth’s 73 public transportation systems.
What caused the crisis?
There is no single cause that led to the funding crisis but the fact remains that the current funding system is inadequate. State and Federal funding levels for transportation have not increased with the rate of inflation and recent double digit inflation in construction costs has made the situation worse. National efforts to reduce gasoline consumption have succeeded and while this is good national policy it equates to decreased revenue from gas taxes. To compound the challenge, this year, for the first time ever Vehicle Miles Traveled have decreased causing less gasoline to be consumed and reduced revenue from gas taxes. Lawmakers and experts from across the country agree that alternative funding solutions are needed.
How will the Act 44 money be spent?
Act 44 stipulates that the PTC will make annual payments to PennDOT. These payments will average $1.67 billion a year for the next 50 years for roads, bridges and mass transit. For the first time, the state has a funding stream that rises each year to keep pace with inflation; and that covers the entire transportation network. The funds will be distributed by PennDOT.
Why does the state want to put tolls on I-80?
Tolls are required to provide the additional funding needed to make critical improvements to I-80 that cannot be funded with available PennDOT resources. Other options like gas tax increase have not come to fruition. Since I-80 and the Turnpike are the two major east/west interstates that cross the Commonwealth, applying a uniform pricing strategy to both cross-state corridors will minimize the traffic diversion to I-80 and other tax-supported state highways that will likely occur when tolls are increased on the existing turnpike alone. Tolls are an equitable way to raise the revenue to support the maintenance of the roads that people use and rely on most.
Won’t tolls hurt local businesses and the local economy?
Obviously toll costs will affect certain groups and certain industries. It is our hope that the long term benefits of keeping I-80 and other major roads in good shape through efficient use of toll revenues will eventually offset the negative impacts of increased costs in the short term. A strong transportation system is a critical component to economic growth.
Won’t trucks use local roads to avoid paying the tolls?
This is a valid concern for local resident and the PTC. PTC statistics show that truck traffic on the Turnpike mainline has steadily increased about 2.5 percent annually following the last toll increase, which went into effect in 2004. As part of the I-80 Project, the Turnpike will conduct a traffic and revenue study that will focus in part on potential diversion of truck traffic from I-80 to local roads. Study results will be shared with the public and used to help make decisions on the location of toll facilities.
Will there be toll booths at every interchange?
No. Unlike the existing Turnpike, I-80 will not be run as a “closed system” with physical tollbooths at each interchange. Instead, most of the revenues will be collected electronically with vehicles passing under gantries at highway speeds. We anticipate up to 10 collection points along I-80 (on average, every 30 miles). With 59 existing interchanges, there would be a toll collection facility, on average, every 5 to 6 interchanges, allowing many local trips to go untolled. The toll collection system will provide for cash lanes in addition to the E-ZPass Express electronic toll collection. CLICK HERE for information on E-ZPass.
Where will the toll facilities be located?
The process for siting the toll plazas begins with a traffic and revenue study to identify a range of potential locations. These locations will then be examined for suitability of roadway based on factors such as vertical geometry (the steepness of the grade), horizontal geometry (the straightness of the road), the presence of sensitive environmental features, and the availability of utilities. As the locations are studied and refined, the PTC will coordinate closely with the public to share this information and receive additional feedback. The toll plaza location studies are anticipated to be completed by the spring 2008 and the PTC and PennDOT will host a series of public meetings seeking input on the potential locations.
How much will it cost to use I-80?
The tolling structure will be finalized in our traffic and revenue study – expected to be completed next winter. Toll rates will match Turnpike mainline toll rates which in 2010 are expected to be 8 cents per mile for cars and 30 cents per mile for the average truck. This would result in a cost of about $25 for a car to cross the state, and $100 for the average truck. Tolls will only be collected at mainline barrier locations, and travel to and from exits between toll plazas will be free.
Will toll revenues go to fund mass transit agencies?
For the first time, the state has a funding stream that increases each year to keep pace with inflation; that covers the entire transportation network; and is driven by user fees. The lease agreement between PennDOT and the PTC stipulates that no toll revenues collected on I-80 will go to fund mass transit agencies.
Will there be service plazas similar to those on the mainline Turnpike?
No. There are no plans to construct any service plazas on I-80; therefore, local businesses serving I-80 travelers will not be affected by new service plazas.
Will the level of maintenance on I-80 change?
PennDOT has made significant investments in improving I-80 in recent years. The PTC will build on that track record and plans a total $2 billion investment in I-80 over the next decade. Improvements would include truck climbing lanes, repaving and other work designed to make the road safer, smoother and more efficient. PennDOT and the PTC are working to establish Maintenance & Operating Standards for the new facility. CLICK HERE
Will there be emergency call boxes?
The answer to this question has not yet been determined. The Turnpike Commission will operate and maintain I-80 using many of the safety features enjoyed by travelers on the Turnpike’s mainline. Such features will enhance communication and response to emergencies and other situations.
Will the bridges with low clearance be corrected?
Yes. The PTC is evaluating the bridge clearances along I-80. Where deficiencies are found, the PTC intends to work to replace these bridges as part of the overall capital improvement plan for I-80.
What is the Turnpike Commission’s role?
The General Assembly and Governor Rendell agreed that the PTC is the ideal agency to manage, operate and maintain the facility and collect tolls. The PTC has earned top credit ratings from all three Wall Street rating agencies including Moody’s, Standard and Poor’s and Fitch Ratings. Moody’s and Fitch Ratings have ranked the PTC as the third most efficient and creditworthy toll agency in the nation. In fact, a recent Fitch Ratings credit report issued in 2006 stated “the PTC’s solid financial performance is significant credit strength.” To learn more about the independent ratings CLICK HERE.
Does the state need federal approval to toll I-80?
Yes. PennDOT and the PTC have jointly submitted a Phase 1 application to the Federal Highway Administration requesting approval to toll I-80 as part of the Interstate System Reconstruction and Rehabilitation Pilot Program established in TEA-21. To review that application CLICK HERE. Phase II of the federal review process in anticipated to take up to one year. We will post updates to our web site at www.paturnpike.com/i-80 throughout the process. In addition, there will be public meetings along the entire I-80 corridor at appropriate points in the process to ensure that the public is informed and has the opportunity to provide input.
Is there a lease between the Turnpike and PennDOT?
Yes. In compliance with Act 44, the Turnpike entered into a 50-year agreement with PennDOT in October 2007 to lease I-80 and assume responsibility for managing the interstate. To view payment information, CLICK HERE.
How do I get involved?
Public meetings will be scheduled at various points in the project development process. Stay tuned to the web site at www.paturnpike.com/i80 for public meeting and event information along with the most current news on the project. Please use the site as a resource to review progress and to submit questions or clarify rumors you might have heard. We welcome the opportunity to address civic groups and other organizations; to contact the Team with your speaker request CLICK HERE
What happens next?
Act 44 is law in Pennsylvania and the PTC and PennDOT are moving ahead aggressively to implement this statute. To review the timeline of project activities CLICK HERE. The goal is to reach a decision on the toll facility locations and other operational improvements to be made, and obtain environmental approval from FHWA for action by Fall 2008.
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