Source: wikipedia.org

Soon the Secretary of Transportation will decide whether Pennsylvania can toll I-80.  In the end there is only one choice, but it’s not an easy decision because several good things might come from tolls on I-80.  First, Pennsylvania could fund maintenance on I-80 and other Pennsylvania roads.  Prior to Act 44, Pennsylvania’s annual maintenance shortfall was $1.2 billion (including transit).  And although tolling I-80 would likely divert traffic to other roads with higher crash rates, some trucks might divert to the PA Turnpike.  Currently trucks bound for Philadelphia and Harrisburg (distribution capital of the Mid-Atlantic) travel via I-80 and US-322, US-15, or I-476.  I know this from my many years living in Boalsburg, PA.  Setting I-80 tolls equal to those of the Turnpike could end much of this diversion.  Unfortunately for Pennsylvania, it might also result in DCs relocating to other States.

Second, it is worth noting that the value currently provided by the PA Turnpike is relatively low.  The Ohio Turnpike charges 80,000 pound, five-axle trucks a rate of 13.4 cents per mile while Pennsylvania charges similar trucks 42.7 cents (over three times as much).  From experience I can say that the Ohio Turnpike is a better road.  There may be many reasons for the difference, but clearly Pennsylvania has been using its Turnpike for things other than providing maximum value to travelers.

Third, while tolls on I-80 may provide a solution to Pennsylvania’s problems, they create more problems for the Nation.  Tolls above the cost to maintain the toll road are essentially a tax on local and interstate traffic.  If all States tax interstate commerce, then the economy and the Nation will suffer.  Just as setting fuel taxes too low to maintain roads is a bad idea, setting toll rates above incremental (or average) cost is a bad idea.  People and firms make bad decisions for the economy (but good for them) when their costs do not represent the true costs of doing business.  This is why provisions of TEA-21 and SAFETY-LU require toll revenues be used only for financially and physically maintaining interstates converted to toll roads.  The Pennsylvania plan violates both the intention and the letter of the law.

So with mixed feelings I predict that Secretary LaHood will deny Pennsylvania’s request a second time.  Pennsylvania will have to find an alternate way to maintain its roads, perhaps by reaching into the pockets of the citizens of Pennsylvania.

Pete Swan is an Assistant Professor of Logistics and Operations Management at Penn State Harrisburg, Middletown, Pennsylvania.  He researches issues involving productivity, operations, and transportation markets and is an active member of the Transportation Research Board.

Bookmark It

Hide Sites