The Pennsylvania Turnpike has experienced such sharp declines in traffic and revenue as a result of the COVID-19 pandemic that the agency is reviewing all of its expenses, including its 10-year, $5.9 billion capital improvement plans and its $450 million annual payments to the state to help pay for public transit.
Figures released by the turnpike show traffic has dropped weekly since March 1, reaching a low of 1.5 million vehicles for the week of March 29, a decrease of nearly 63% compared to the same week in 2019. As a result, toll revenue fell from $23.6 million the week of March 1-7 to $11.9 million the week of March 29, a drop of nearly 50% compared to 2019.
“The PA Turnpike Commission continues to closely monitor traffic and revenue and the effect the COVID-19 pandemic has had on our bottom line,” CEO Mark Compton said in a statement Thursday. “Given the significant drop in traffic, especially commuter traffic, and the accompanying revenue decrease, the Commission is reviewing our operating and capital spending and funding obligation to the Commonwealth to mitigate the loss.”
Mr. Compton said that review includes all capital projects that involve widening the roadway or other nonessential maintenance. Some parts of the toll road are original construction from the 1940s and 1950s.
“We’re reconsidering capital expenditures with a focus on moving ahead with only mission-critical projects necessary to maintain our 552-mile tollway — along with our facilities, technology and fleet — in their current conditions,” Mr. Compton said.
One capital expense the turnpike won’t delay is the five-year, $129 million project to go to all cashless tolling beginning in fall 2021, requiring motorists to use prepaid E-ZPass transponders or be billed after the turnpike takes a photo of their license plate. Then, the toll plazas will be removed and replaced with overhead gantries, followed by a redesign of most exit ramps to allow for a free flow of traffic from the toll road to local roadways.
In addition to capital projects, Mr. Compton said the agency is reviewing whether it will be able to make the quarterly payments to the state Department of Transportation that are required under law to help pay for the state’s share of subsidy for public transit. The turnpike borrowed the money last year to make the current $112.5 million payment, but Mr. Compton said it is reviewing whether it can make the next payment in July.
This is the same pot of money the turnpike couldn’t pay for about a year from July 2018 to July 2019 because of a lawsuit by a national trucking group that claimed it should be illegal to use turnpike tolls to support other projects. The lawsuit made it impossible for the agency to borrow the money for the payments.
When the truckers lost, the turnpike borrowed money in July 2019 for the payments.
The payments have been a financial thorn for the turnpike for years, helping to build its debt of more than $13 billion. Those payments are scheduled to be reduced to $50 million a year in 2023, but Mr. Compton said the agency may not be able to wait that long.
“…Given the ongoing revenue disruption, we are examining our options as to continuing to make payments to the Commonwealth,” Mr. Compton said. “With our unfunded payment due in July, the next few months will be crucial for us to work with the General Assembly and Gov. [Tom] Wolf to ensure that these unprecedented changes to our operating picture are fully understood and that we can continue to meet our primary mission of operating the Turnpike system.”
The previous delay in transit payments caused Port Authority to put more than $65 million in capital projects on hold but didn’t interrupt service. Another delay would come at a time when the transit agency already is reeling from low ridership as a result of COVID-19.
“This is not extremely surprising,” said authority spokesman Adam Brandolph, “but is certainly one more thing that we’ll have to work through.”
One difference is Port Authority is eligible for $141.75 million in federal stimulus money to reimburse loses due to the pandemic. Although there could be some grant money available, no such reimbursement exists for government-operated toll roads.
State Sen. Kim Ward, R-Hempfield, said she appreciates the turnpike’s plight, but the virus also has hit state finances hard. Gov. Wolf has predicted a $5 billion state deficit by the end of the fiscal year June 30 because of lost sales tax and other revenue.
Ms. Ward sponsored legislation under consideration in the state House to pare back the annual payments by $100 million a year until 2023, but she said that is in jeopardy because of the virus-related economic downturn.
“The turnpike is doing the prudent thing: If you have to hold off on projects, you have to hold off,” she said. “We thought we could shorten the timetable for making those payments.
“It’s just a tough situation. Look at one month of the virus has done. It has turned [state finances] upside down.”
Mr. Compton said the turnpike is reluctant to hold back improvement projects, but its first obligation is to maintain what it has now.
“I want to be clear: Our roadway is our key asset and we remain committed to advancing projects that improve or maintain safety and extend the life of that asset,” he said.
Ed Blazina: eblazina@post-gazete.com, 412-263-1470 or on Twitter @EdBlazina.
Correction, posted April 17, 2020: In an earlier version of this story the cashless toll date was misstated.
First Published: April 17, 2020, 10:45 a.m.
