Turnpike tolls will increase each year so that the Pennsylvania Turnpike Commission (PTC) can continue making ongoing annual payments to PennDOT for road, bridge and transit projects around the Commonwealth as required by law in Act 44 of 2007, while still maintaining and repairing the Turnpike system. Between 2007 and 2013, the PTC has provided PennDOT with $3.85 billion in new funding. In addition, the PTC is required to make annual payments to PennDOT in the amount of $450 million annually, through 2057, making the PTC a long-term funding partner with PennDOT.

The PTC has taken several steps to better manage operating costs to ensure that toll dollars are invested appropriately and effectively. Those steps include staff reductions, changes in procurement practices and other cost-saving measures. The PTC will continue to seek ways to generate additional savings to minimize the annual toll increases necessitated by law under Act 44. In July 2010, the PTC approved an E-ZPass incentive plan designed to spur more motorists to use the electronic toll payment system, which is more efficient for the agency and for motorists.
For more on E-ZPass, CLICK HERE.

We’ve done our best to streamline operations and become more efficient - especially after the economic downturn that impacted us as it has every other business.

• Turnpike has 200 fewer employees now than at any time in the past decade, yet we're responsible for more traffic, more highway miles and more investment in our state's ground-transportation infrastructure.
• Each time we build a new piece of tolled expressway or add lanes during a six-lane widening project, it creates more roadway miles that must be maintained. But, by asking more of our employees, we've been able to address maintenance needs – more plowing, more mowing, more line painting – while realizing a cutback in workforce.
• In addition to workforce reductions, the Commission has effectively controlled costs by keeping a lid on expenses, considerably reducing operating-cost increases. Though it's seen operating expenses go up nearly 6 percent a year over the past decade, the Commission has cut those increases in half this fiscal year and last fiscal year. It also reduced expenses throughout the organization by trimming or eliminating costs for conferences, travel, utilities, building security and other such expenses.

The PA Turnpike receives no state or federal tax dollars for its maintenance or operations. State and federal gas tax revenue are dedicated to the Motor License Fund that is used by PennDOT. While your toll dollars are primarily used to maintain, operate and rebuild the PA Turnpike system, the PTC also provides annual payments to PennDOT in accordance with Act 44 of 2007 to help fund PennDOT road, bridge and transit projects across the Commonwealth.

For most of the PTC’s 70 years of operation, every toll dollar collected was reinvested in the system. That changed with the passage of Act 44 in 2007 when the Pennsylvania General Assembly made the PTC a full funding partner with PennDOT. The PTC, as a creation of the General Assembly, is charged with implementing this statute. Its strong history of financial stewardship and high bond ratings has enabled it to honor the Act 44 commitments. Pennsylvania is not the only state that has turned to toll revenues as a source for additional revenue for transportation systems. As gasoline tax revenues continue to shrink when compared to the growing needs, many states and municipalities around the nation are exploring new and innovative funding streams.

The cost to maintain and build roadways continues to increase — as does the PTC’s responsibility to provide new transportation funding for the entire commonwealth. A strong transportation system is a critical component to economic growth. Annual increases will allow the PTC to keep pace with rising costs so that progress is not lost in providing necessary funding for roads, bridges and transit throughout Pennsylvania. It also avoids instituting those bigger increases of 30-40 percent every dozen years or so, as was the old practice.

The original bonds, and many other bonds sold in the past 70 years, were paid off on schedule, which is one of the reasons why the Turnpike has earned consistently high marks from the ratings agencies. Toll dollars are necessary to fund the Turnpike’s ongoing operations and maintenance; our $4.5 billion reconstruction program; yearly debt service; and, our Act 44 payments to PennDOT. The Turnpike receives no tax dollars for its basic operations and relies almost exclusively on toll dollars. With the passage of Act 44 in 2007, we have seen an increase in our debt service payments as a result of $3.85 billion in new funding we provided to PennDOT from 2007-2013. Starting in 2010, the Turnpike is obligated to make an annual payment to PennDOT of $450 million for the next 47 years. Annual toll increases will enable us to meet that obligation.

There is no question that the annual Act 44 payments represented a major shift in our mission. For the first time, toll dollars would be leaving our facilities. But there was a great need for additional transportation funding identified in a special state report in 2006, and a number of revenue-generating ideas were discussed on how to best bridge the funding gap. Tolling was the concept that received support among elected officials reluctant to increase taxes. It is important to note, however, that this is not the first time the General Assembly has relied on our agency to address transportation funding challenges. In 1985, Act 61 was passed by the General Assembly, which assigned 20 major road projects to the Turnpike, including the Mon/Fayette Expressway and Southern Beltway projects. Many transportation funding experts believe that as states across the nation grapple with funding shortfalls, tolls and other user fees will become more commonplace.

Traditionally, toll dollars are dedicated to the maintenance and operation of that tolled facility. For the better part of our 70 years in business, that is how we operated. However, with the passage of Act 44 in 2007, the General Assembly mandated that the Turnpike serve as a funding partner for PennDOT. As a creation of the General Assembly, we are obligated to follow the mandates of Act 44. And the truth is, with more fuel efficient vehicles, alternative fuels use and changing driving habits, a tax on fossil fuels is not the best funding mechanism to rebuild our highways as we move ahead.

E-ZPass is more efficient for the PTC – but most importantly, it’s safer and more convenient for customers. In fact, we can process up to four times as many cars per hour using E-ZPass versus the traditional cash lanes, making everyday tollbooth congestion a thing of the past in some areas. E-ZPass reduces idling, which means a cleaner environment. And with E-ZPass, we are better positioned to add new capacity to manage increased traffic without having to add toll plaza lanes. It makes sense for the agency and for our customers.