Tolls or leases, new funding a necessity

January 16, 2008

EDITORIAL: By The Sentinel [Carlisle, PA]

A couple of developments this week drew our attention back to Pennsylvania’s need to get caught up with road and bridge repairs.

One of them was a report from the National Surface Transportation Policy and Revenue Study Committee, a group formed by a 2005 act of Congress to consider how to fund such improvements nationwide. The committee called for annual increases in the gas tax until it reached 40 cents a gallon — more than double the current rate of 18.4 cents.

The 12-member committee was not unanimous on this point, however. Three members, all with ties to the current administration, including Transportation Secretary Mary Peters, plan to issue a dissent in which they favor more toll roads and private-sector investment in roads and bridges.

That brings us back to Pennsylvania, where we seem to be having trouble choosing between toll roads and private investment. The Legislature passed a bill to put tolls on Interstate 80 and increase tolls on the Pennsylvania Turnpike, but Gov. Ed Rendell and some legislators have been pushing to lease the Turnpike to a private operator instead.

Strong opposition from the I-80 corridor and mixed signals from the federal government, however, have made the toll proposal look like a bit of a gamble.

This week, state Sen. John Gordner, R-Columbia, announced plans to introduce a bill that would repeal the I-80 toll bill in favor of leasing the Turnpike. He proposes leasing it in three parts — the section from Ohio to Harrisburg, the section from Harrisburg to New Jersey, and the Northeast Extension.

His proposal also will include a provision to prevent a foreign-owned entity from bidding on the leases.

The idea of leasing out the Turnpike in sections has some appeal, in that it would allow Pennsylvanians to see for themselves whether the economics behind leasing are sound. Previous road leasing deals in other parts of the country have been criticized for giving up too much to private firms, so starting out with a partial deal might help smooth the way to lease all of the Turnpike.

On the other hand, the division of the Turnpike as laid out in the Associated Press story about Gordner’s proposal doesn’t address the Turnpike “spurs” like PA 66 in Westmoreland County and PA 60 in Beaver and Lawrence counties — not to mention PA 43 in Washington County, which is part of a larger uncompleted project to connect Pittsburgh to West Virginia.

The finished roads could be easily included, but the unfinished projects could be abandoned in the negotiations for a lease. Western legislators might well reject such a deal in the same way that those from the I-80 corridor are fighting the current toll plan.

But the part of Gordner’s plan that is most likely to be dropped at the start is the one banning foreign companies from bidding on the Turnpike. The most active firms in this field are from outside the U.S.; Spanish and Australian companies formed a consortium to lease the Indiana Toll Road.

It’s clear, though, that the health of our roads and bridges depends on new funding sources. Individually, we can pay more for gasoline or pay at the toll gate, as opposed to collectively paying interest on the money advanced from leasing the Turnpike.

One thing is certain, though. The longer the debate goes on, the longer it will be until we actually begin bringing our roads and bridges up to standard.