Fixing the turnpike mess
Talk about unintended consequences. As a way to avoid increasing gas taxes back in 2007, the Pennsylvania Legislature decided to raise $450 million yearly — $400 million for public transit and $50 million to encourage multimodal projects — by tolling Interstate 80 and placing higher tolls on the Pennsylvania Turnpike.
However, tolling Interstate 80 was rejected by the federal government. The Legislature could have devised other means to raise revenue but took the easy way out — lawmakers decided to just raise turnpike tolls and have the turnpike make an annual $450 million payment to the state Department of Transportation until 2023.
Fast forward to 2020 and the announcement last month by the Pennsylvania Turnpike Commission that tolls will rise — by 6% — for the 13th straight year.
Not surprisingly, the ever-increasing tolls, combined with the coronavirus pandemic, have fewer drivers using the turnpike, resulting in lost toll revenue of more than $118 million.
The Legislature should do some outside-the-box thinking to remedy this scenario, such as a proposal offered by a pair of Democrats from Bucks County.
Sen. Steve Santarsiero and Rep. Perry Warren introduced bills in their respective chambers that would offer an annual state income tax credit of 50% of tolls paid, with a $500 cap. In order to qualify, all tax credit filers would be required to submit valid E-ZPass documentation.
They said the rebate would provide relief for turnpike motorists while also producing an additional 2.5% in revenue for the turnpike commission.
No one could have foreseen how decisions made back in 2006 would end up being so disastrous in 2020. But we know the consequences now and it’s time for Republicans, who control the Legislature, to stand up and find a way out of this mess. They can’t keep ignoring the problem, hoping it will go away.
Republicans have refused to even consider the rebate bill. That must change. They should at least allow hearings on it. Perhaps the bill is a little too generous or maybe it’s impractical. But we’ll never know that until the bill is debated in the Legislature.
Turnpike officials estimate it could take two years for traffic levels to reach pre-pandemic levels. And that will happen only if motorists accept the ever-increasing tolls. Consider this: Tolls were raised on the turnpike only five times before 2006 and back then drivers paid $14.70 to travel the length of the 356-mile highway. Next year, such a trip will cost an estimated $65.28 — a 344% increase in 14 years.
Increasing tolls every year is not a sustainable path to financial security for the turnpike. A tax credit may not be the answer, but it’s at least worthy of discussion.