Act 44 Plan

Statewide Transportation Funding Challenges

The Pennsylvania Turnpike Commission (PTC) developed this online resource to provide background information on Act 44 of 2007 and our agency’s longstanding role as a funding partner with PennDOT.

Act 44 required the PTC to provide PennDOT with $450 million annually for highways, bridges, and public transit, with Act 89 of 2013 modifying the payments to dedicate the full amount to public transit. Beginning in 2022, PTC payments to PennDOT for transit have been reduced to $50 million.  In addition to the PTC's contribution of $50 million annually, another $450 million will be provided from the state’s General Fund to be used for statewide public transit projects.

As a result of the financial burden of Act 44, the PTC has been forced to raise toll rates for 13 straight years and the agency’s debt levels have risen to nearly $14 billion. While the PTC's annual Act 44 obligation has been reduced from $450 million to $50 million, beginning in July 2022, the Commission will be required to continue to raise tolls through at least 2051 as a result of the debt previously issued to fund its Act 44 obligations from 2007 through 2022.  With the reduction in its Act 44 obligations, the PTC will accelerate its capital reinvestment into its system through its capital budget after 15 years of reduced capital investments cause by Act 44. 

Background

The PTC has played a key role in the statewide transportation discussion for decades. The state has turned to the PTC for major highway expansion projects, including the ongoing Southern Beltway and Mon-Fayette projects and others. Since 2007, the PTC has provided nearly $8 billion to PennDOT to fund statewide transportation projects across the state.

What is the PA Turnpike Commission’s role in statewide transportation funding?

In July 2007, Governor Ed Rendell signed Act 44 into law, requiring the Commission to provide annual payments to PennDOT to help fund projects and transit operation in every county in the state. In order to make these payments, the PTC has raised toll rates every year since 2007. What impact has Act 44 had on the Turnpike Commission?

Act 44 marked an important change for our customers and our agency operations. In addition to the impact on our customers, the PTC’s growing debt, as a result of the Act 44 payments, compelled the PTC to reduce its capital investment into rebuilding and expanding the Turnpike. While Act 44 continues to pose significant challenges, the Commission continues to achieve our mission of providing safe and efficient travel for our passenger and commercial customers.

Why did the Legislature Pass Act 44?

The goal of Act 44 was to provide necessary funding for statewide interstate, road, bridge, and transit projects across the state. The revenue was to come from expanded tolling in the state. Under Act 44, Pennsylvania made an application to the Federal Highway Administration for permission to place tolls (I-80). The Commission was to install and manage toll collection on I-80. The tolls would have funded I-80’s reconstruction and funded Commission payments to PennDOT. After three years of studies, the federal government denied the state’s application. The PTC, however, still must continue to make annual payments to PennDOT. Act 44 was amended by Act 89 of 2013. With the new law, the PTC's annual payments to PennDOT remained at $450 million through June 2022. All $450 million has been annually allocated to support transit and other non‐highway programs. Starting in fiscal year 2023, the Commission's Act 44 payments drop to $50 million per year until 2057.  This reduction in its annual Act 44 obligation will allow the PTC to increase its capital reinvestment into its infrastructure and will lead to a long term reduction in the Commission's total amount of debt outstanding.