Re: Turnpike fiscal mess in need of private cleanup
The people of PA voted for Ed Rendell and we got act 44. Now the Gazette says the Turnpike is being mismanaged? From the PA Turnpike website:
In July 2007, Governor Rendell signed Act 44 into law, requiring the PTC to make payments to PennDOT for statewide transportation needs. In order to provide the payments, the PTC must increase its toll rates each year. A key part of Act 44 was the application to the Federal Highway Administration for permission to place tolls on Interstate 80 (I-80). The tolls would have funded I-80’s reconstruction and payments to PennDOT. After three years of studies the federal government denied the application to convert I-80 to a tolled facility. The PTC, however, still must continue to make significant payments to PennDOT.
In addition to increased toll rates along the PA Turnpike, it is likely the PTC will have to cut spending on its own long-term projects and capital expenses, to maintain the mandated level of funding to PennDOT.
The PTC has paid $3.625 billion to PennDOT to date.
The PTC must pay $450 million each year, through the year 2057.
By the end of the 50-year lease period outlined in the law, the PTC will have provided nearly $24 billion in supplemental funding Non-Turnpike projects.
I cannot explain all $7 billion (if it is real), but 3.6 billion is easily explained above.
