Pennsylvania Mulls Loss of Toll Revenues

Pennsylvania officials are debating whether to resubmit to federal officials an application to implement tolls on Interstate 80 or look to alternative revenue enhancers as the Pennsylvania Turnpike Commission continues its payments to the state.

The Federal Highway Administration in September rejected Pennsylvania's request to begin tolling I-80, a 311-mile east-west roadway that runs through the center of the state.

Pennsylvania's secretary of transportation, Allen Biehler, last week told the state's House Democratic Policy Committee that he plans to meet with federal officials to discuss potentially filing the tolling request again.

At the same time, Gov. Edward Rendell has said the state may need to look in other directions for additional revenue while the Obama administration fills FHWA and Department of Transportation positions, and federal lawmakers hammer out plans for surface transportation financing.

"[The governor] believes that it would be a waste of time for the secretary to submit an application at this point," said Rendell spokesman Chuck Ardo. "He believes that it would be more prudent to wait for the [transportation funding] legislation to work its way through Congress before any further attempts are initiated."

Pennsylvania's Act 44 allows the state's Department of Transportation to lease I-80 to the PTC in a public-public partnership, with the authority implementing tolls and allocating to the state yearly lease payments financed through bond sales.

Without the tolls, PennDOT will continue to receive payments from PTC, yet the amount will drop to $450 million in fiscal 2011, which begins July 1, 2010, compared to an estimated $922.5 million payment for that year under the tolling plan.

Overall, not tolling I-80 will result in $60 billion less in revenue for the state over 50 years.

PTC spokesman Carl DeFebo said the authority is on track to give PennDOT $900 million in fiscal 2010, including a $225 million payment on July 31.

Tolling alternatives include an increase in the state's 31.2 cent per gallon gas tax and diverting revenue from other transportation programs.

"There are any number of proposals being bantered around, but none have risen to the level of gaining any appreciable support," Ardo said.

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