PennDOT, the Pennsylvania Turnpike and transit leaders across the state are putting together a coalition for a major push to change funding for public transit by eliminating contributions from the turnpike.
They took the first step Monday with the release of a joint study by the turnpike and the Southeastern Pennsylvania Transportation Authority that called for the state Legislature to provide broader state and regional taxing powers to fund transit and release the turnpike from paying $450 million a year towards the service.
Then the turnpike, Department of Transportation and even truckers who challenged the legality of the payments doubled down Thursday on the need for a revised funding formula after a federal judge denied the truckers’ claim that using toll money for transit is illegal.
The next step: Port Authority of Allegheny County weighs in.
The turnpike and Port Authority are expected to release a similar study next month, but the conclusions are expected to be largely the same as the SEPTA study since the issues and the consultant, Michael Baker Inc., are identical.
The turnpike, which has been making transit payments since 2007, is heavily in debt and has to borrow the money every year.
Its payments in support of transit have been suspended since July because of the federal lawsuit challenging the legality of using turnpike tolls to pay for anything other than turnpike work. State law requires the payments through 2022 but the turnpike would like to end them earlier.
The Southeast study recommends the Legislature consider a range of 43 potential revenue sources for state or regional transit funding, from traditional sources such as cigarette, alcohol or hotel room taxes to fees for electric cars, adult bicycles or lead acid batteries. The study doesn’t endorse any particular plan, but turnpike CEO Mark Compton said it is designed to “start the discussion with the General Assembly.”
“There’s no question in my mind both [state and regional funding] have to be pursued,” Mr. Compton said Tuesday.
In addition, the study identifies needed turnpike and SEPTA projects that aren’t moving forward because of a funding shortage. It is “not feasible” for the turnpike to consider discretionary projects such as new interchanges as long as it is paying for transit, Mr. Compton said, and local transit agencies have no ability other than fares to raise more money for capital projects they want to pursue.
Leslie S. Richards, PennDOT secretary and chairwoman of the turnpike commission board, agreed.
“We are at a critical juncture in understanding just how damaging and deep the risks to our statewide transportation funding pool really are,” Ms. Richards said in a news release about that study.
“This report demonstrates the importance of our mass transit assets now and into the future.”
In this area, the turnpike doesn’t have funds for a proposed new interchange between Irwin and Monroeville or for rebuilding the Monroeville interchange. Port Authority, meanwhile, doesn’t have the $150 million or so it needs to build a new garage so it can expand bus service as ridership is growing.
Suit highlights problem
The truckers lost the first round of the lawsuit Thursday and almost immediately filed a notice to appeal. Regardless, all parties agree the system should be changed.
“We need to continue to build a world-class transportation system in Pennsylvania that addresses all of our needs,” PennDOT spokeswoman Erin Waters-Trasatt said in a statement. “We will continue to work with stakeholders and legislators to identify long-term funding strategies to maintain these critical services while supporting economic growth.”
Todd Spencer, president of the Owner-Operator Independent Drivers Association, also highlighted the funding arrangement in response to the lawsuit decision.
“Our case has been widely reported in the press and incorrectly linked with other reports alerting the public to a looming transportation crisis, driven in part by the same statutory scheme that our lawsuit challenges,” Mr. Spencer said.
“[State laws] passed in 2008 and 2013, respectively, ordered the Pennsylvania Turnpike Commission to send $450 million a year to PennDOT. The turnpike is in debt approaching $12 billion, and the Auditor General has labeled the state's transportation funding system ‘unsustainable.’”
In the turnpike-SEPTA study, the report also stresses that improved transit and transportation are key factors in promoting economic development. The current funding system is blocking improvements, it said.
“Companies and employees view mass transit as a key differentiator in choosing where to locate their businesses and where to work,” Dennis Davin, state secretary of community and economic development, said in a news release about the study. “We need to continue growing capacity across the commonwealth so that we can support economic growth and compete with regions like New York and Washington, D.C., to attract new business.”
Mr. Compton stressed the turnpike isn’t looking for any money for itself.
“We’re really not looking for a subsidy,” he said. “We’re just looking to be left alone. If we don’t have to pay that $450 million a year, we’ll be fine.”
Allegheny County Executive Rich Fitzgerald, who co-chairs the study’s advisory committee for the western region, said he expects the study for this area to produce similar recommendations. Port Authority and the turnpike split the $410,000 cost of the study.
“Really, there’s only two options: The state is going to have to authorize through the Legislature the power to raise transportation money on a statewide basis or the second option is to give authorization locally for jurisdictions to raise funds,” Mr. Fitzgerald said.
“The worst option is doing nothing. Our economy will come to a grinding halt. You have to have a vibrant transportation system.”
Mr. Fitzgerald acknowledged that authorizing additional taxing powers could be a difficult sell in Legislature, but he said expanding funding for mass transit and transportation projects should be a bipartisan issue. He encouraged elected officials, neighborhood groups, unions, universities and others to join forces.
“This really is a bipartisan challenge,” he said. “It’s really got to be everybody coming together.”
Previous efforts to eliminate the turnpike payments for transit found no footing in the Legislature because the state has its own financial concerns and hasn’t found another source for the money, which by law will be reduced to $50 million a year in 2023. Mr. Compton said the issue could get a more favorable hearing this time because of the turnpike’s struggles and the needs of local transit agencies.
“In both the Southeast and Southwest, I was impressed with the determination of the advisory committee members to get something done,” Mr. Compton said. “The synergy with these two studies is really strong.”
Ed Blazina: eblazina@post-gazette.com, 412-263-1470 or on Twitter @EdBlazina.
First Published: April 7, 2019, 12:00 p.m.
