The Pennsylvania Turnpike Commission (PTC) is undertaking long-overdue updates to its toll collection system that will more accurately and efficiently charge road users. The Commission expects the changes to save up to $25 million a year in costs — however, that’s a drop in the bucket compared to its massive debts, which will likely necessitate above-inflation toll increases for the foreseeable future.
This is due to the notorious Act 44 of 2007, which, seeing the PTC as an easy source of needed revenue, raided the Commission to solve the Commonwealth’s transportation funding problems, especially for public transit. For 15 years, the PTC was forced to shell out $450 million a year for other transit priorities, which led to huge annual toll increases, deferred maintenance on Turnpike roadways, and the delay of expansion projects.
These payments essentially shifted the burden of paying for the state’s transportation projects onto Turnpike users. It dinged southwestern residents more than most, given the necessity of long I-76 drives to reach points east, especially to Washington, D.C. Meanwhile, I-80 remains free to all.
Worse it forced the PTC to take out billions in debt. In 2022, according to a state audit, the PTC owed lenders $13.2 billion, more than the debt of the government of Pennsylvania.
That same audit found that the agency was in danger of pricing “itself out of the market to keep up with its bills.” When prices rise too high, usage will go down, reducing revenues, requiring higher prices.
Finally, in 2023, the legislature slashed the PTC’s forced transit contribution down to $50 million, to be paid every year until 2057. This precipitated a crisis in transit funding, which the Shapiro administration and the General Assembly are still working to resolve.
But just to pay down the debt, Turnpike users are likely looking at decades of annual 5% toll increases, or more than twice the target level of inflation in federal policy.
It’s in this context that the Commission is moving to end toll plazas for good in favor of “open road tolling,” which eliminates the last frustrating inefficiency of Turnpike travel: slowing down to go through the old toll booths. Overhead gantries along the PTC’s highways will scan E-ZPass transponders or photograph cars’ license plates as they pass underneath at full speed. Western Pennsylvania can expect to see them by January 2027.
The end of tollbooths will also allow for a wider variety of interchange shapes, permitting the long-needed addition of ramps at Route 130 in Westmoreland County, as well as allow for direct connections between I-76 and I-70 at the notorious Breezewood interchange.
At the same time, the Turnpike must continue to improve its toll collection systems to prevent “leakage” — that is, revenue losses due to unpaid tolls, most from the current toll-by-plate system’s problems in reading license plates and getting the owner’s right address from PennDOT.
The Commission argues that its leakage rates of 6% to 7% are consistent with other agencies, but with over 550 miles of roadway under management, that adds up to more losses than most. Toll-by-plate systems must become more efficient, especially as the PTC continues to ask for more from toll-payers.
Pennsylvania needs a comprehensive transportation funding solution across PTC, PennDOT and regional transit agencies. The Turnpike’s more efficient toll collection is a step in the right direction, but only a small one.
First Published: January 7, 2025, 10:30 a.m.
