Feds say no to I-80 tolls

By Brad Bumsted
STATE CAPITOL REPORTER
Thursday, September 11, 2008

HARRISBURG -- The federal government has rejected Pennsylvania's plan to toll Interstate 80 -- creating a $450 million void in the state's transportation funding plan and breathing new life into a proposed $12.8 billion turnpike lease.

Leasing the Pennsylvania Turnpike for 75 years is the only available option at the moment to replace that revenue, Gov. Ed Rendell said today at a news conference. Spanish toll road operator Abertis Infraestructuras SA and Citigroup made the offer in May but lawmakers have been cool to the plan.

"It would be playing Russian Roulette not to act on the Albertis bid," said Rendell, who has long sought a turnpike lease despite significant resistance from lawmakers.

The plan to toll I-80 was the linchpin of Act 44, a state transportation funding law enacted last year to provide about $1 billion a year for highways, bridges and mass transit. Replacing that revenue would require an 8-cent-per-gallon increase in the state gas tax, which Rendell said is not likely as gasoline prices remain near historical highs.

Pennsylvania's 32.3-cent-a-gallon gas tax is the nation's 12th-highest.

There's no immediate financial impact. The shortfall would occur in 2010. But Rendell argued that mass transit "can't plan for the future" without secure funding in place.

"It would be irresponsible for us to throw up our arms. We have a $12.8 billion solution," Rendell said. U.S. Transportation Secretary Mary Peters called Rendell at 1:55 p.m. today to inform him that her department has rejected the state's plan to toll I-80. The decision was a blow to the state Turnpike Commission, which pushed hard for tolling the interstate and has fought attempts to privatize the turnpike. "After we've had an opportunity to see and understand the FHWA's rationale, we certainly will have more to say on this important issue," turnpike CEO Joe Brimmeier said in a statement.

The decision also was a major victory for Republican U.S. Reps. Phil English of Erie and John Peterson of Venango County, who argued that tolling I-80 would cripple the rural areas they represent along the interstate corridor.

"This is a huge victory for rural Pennsylvania and a blow to Harrisburg's attempt to turn I-80 into a cash cow for unrelated transportation programs, like mass transit," English said in a statement. "The U.S. Department of Transportation's decision slams the door on the attempt by PennDOT and the Turnpike Commission to treat rural communities as second class citizens and to stretch the federal law."

State lawmakers return to session Monday following a two-month recess. Rendell said the Legislature needs to act on the turnpike bid before adjourning. The House and Senate have only nine session days scheduled before the Nov. 4 election, and Senate leaders don't plan on holding a post-election session.

Albertis has extended the life of its offer, but Rendell said time his running out.

"I can guarantee you that Albertis bid will not be there in January," he said. "It's a problem we've got to solve now."

House Appropriations Chairman Dwight Evans, a Philadelphia Democrat who sponsored the turnpike privatization bill, believes the lease proposal should get a full airing in the Legislature, said his aide Johnna Pro. "Representative Evans believes the bill should come to the (House) floor where we can have a robust debate on the merits and have a vote," Pro said."To not even discuss it would be silly."

Some of Evans' fellow lawmakers, however, might not share Rendell's sense of urgency.

"The prospects for dealing with it now are zero," said Paul Parsells, chief of staff to Majority Whip Keith McCall, D-Carbon County. "There is no crisis."

Rendell said he is open to any other option that raises $1 billion a year. "Could they come up with a second proposal? Sure," Rendell said. The governor said the state's transportation funding dilemma might knock him off the campaign trail, where he is stumping for Democratic presidential nominee Barack Obama.

"It might mean I have to curtail some of my campaign activity," Rendell said.

The state Turnpike Commission could submit a new bid for tolling I-80, but Rendell said the chances of approval are virtually nil.

Peters rejected the application, Rendell said, because federal law requires that money raised from tolling an interstate be used for repair and maintenance of that interstate or roads that link to it.

"It did not meet technical requirements of the act," Rendell said.

Brad Bumsted can be reached at bbumsted@tribweb.com or 717-787-1405.
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