The Pennsylvania Turnpike: Unsafe At Any Speed Updated: April 10, 2013 by Eric J. Epstein Rock the Capital The Pennsylvania Turnpike was a landmark achievement for Pennsylvania motorists when it officially opened on October 1, 1940. America’s first Superhighway gave Pennsylvanians greater access to work, recreation and the freedom to roam the open road. Many of us harbor happy motoring memories: stopping to picnic, eating clam rolls at Howard Johnsons or taking Sunday afternoon jaunts to view fall foliage. That era is gone. The Greatest Generation has yielded to the Greatest Burden. Cheap gas, friendly attendants and clean restrooms are in history’s rear view mirror. So too is the old way of doing business at the toll road according to former-Pennsylvania Turnpike Commission’s (“PTC” or “the Commission”) Vice-Chairman, Timothy Carson. Six year’s ago, Mr. Carson ushered in a new era proclaiming, “We’re not your father’s Turnpike.” (1) The Turnpike should not be my granddaughter’s debt burden either. Governor Rendell (D-Philadelphia) did not create the kleptocracy that is the Turnpike, but he did conspire with both Republican chambers to construct an excruciating debt burden embedded in the passage of Act 44. According to former-Auditor General Jack Wagner, (D-Allegheney) the Turnpike’s “long-term debt has increased by more than 200%, from $2.6 billion to $8.3 billion, since the General Assembly approved Act 44 of 1 2007.” (2) And the debt continues to rise: “The ratio of debt-per vehicle rose from $6.47 in 2003 to $35.62 in 2012. The Turnpike still owes owes Penn DOT $450 million every year until 2058.” (3) The Commission is run by a Chief Executive Officer, a Chief Operating Officer and governance is set by appointed Turnpike Commissioners. The Turnpike is a major business enterprise and a historical marker covering 546 miles of roadway with 21 maintenance facilities, five tunnels, 64 toll interchanges, 17 services plazas. While the physical infrastructure that is the Turnpike is an essential artery for Pennsylvania, the Turnpike Commission is an outdated political patronage den where tolls, bonds, and perpetual debt are its lifeblood and the reason for its existence. There has to be a better way than the status quo. We scream when gas blinks upward and support military action to pay less at the pump. But Pennsylvanians remain respectfully indignant when the Turnpike holds them hostage and charges an arm and leg for a cold slice of pizza. The cost for a one-way trip ticket per automobile is about the same price to sit in the outfield bleachers at a Phillies game and on par for what we charge a nonresident to shoot to a bear. The Turnpike Commission raised tolls 42.5% in 2004. Holy crap! That was more than the raises legislative leaders (16% to 34%) gave themselves on July 7, 2005 at 2:00 am in the morning. As the economy tanked, tolls steadily increased for motorists using cash or EZ Pass. Increase after increase was met with quiet despair and editorial outrage. 2 Then came the “See No Evil” toll increase of 2010. The Turnpike Commission decided to stop printing fares on tickets as a 10% increase was set to explode. The Commission argued that eliminating fare information would save $100,000 in printing costs. Auditor General Jack Wagner countered that “the removal of fare information as an attempt to conceal the rate increase from the public. He also said that motorists would be confused because without the fare printed on the ticket they would not know how much their trip would cost.” (4) The Turnpike’s logic was bizarre: Let’s save money on printing costs but reimburse Commissioners for reenacting Sodom and Gomorra. Fresh from PHEAA facials, falconry lessons and mud baths, Mr. Wagner “found commissioners racked up $539,000 in expenses between 2007 and 2011, including $45,992 for lodging, $15,356 for meals, and $406,497 for cars.” (5) And these guys don’t even pay tolls. The Turnpike later reversed its decision and printed the actual cost of fares on tickets. Whatever happened to truth in advertising? Well before the “Guess Your Charge” fiasco, former Turnpike CEO Joseph G. Brimmeier - who was indicted by Attorney General Kathleen Kane (D-Lackawanna) on March 13, 2013 - promised on January 24, 2004, “Further, I pledge that this will be the last toll increase for at least the remainder of this decade, so Pennsylvania Turnpike customers can once again enjoy a respite from toll increases while driving a better, safer road.” (6) The following year, “The number of cars using the Pennsylvania Turnpike is down by less than 1% since last summer's toll increase.” (7) 3 Mr. Brimmeier broke his bond three years later and maneuvered to increase Turnpike tolls by 25%. In 2009 - the first year of a full throated recession - the Promisekeepers increased tolls by 3%. (8) Maybe I’m too old school, but I was taught that a decade constitutes ten years. Brimmeier bragged that the Turnpike hadn't raised their tolls since 1991. While that’s true, it’s only half of the story: Turnpike tolls were increased by 30% in 1987 and another 30% in 1991. In 2007, House Bill 1590 gave “the PTC full discretion to set toll rates subject to bond covenants giving bondholders rights in circumstances of default.” In other words, "Tolls shall not be subject to supervision or regulation by any other state commission, board, bureau or agency. (9) This was a chilling reminder of former Senator Allen Kukovich’s (D- Westmoreland) warning that the Turnpike’s bond business “just seems to be pay backs to political folks all the time.” Since the General Assembly approved Act 44 “there have been five annual toll increases, and the PTC’s “long-term debt has increased by more than 200%, from $2.6 billion to $8.3 billion” and traffic volume stagnated between 2007-2012. During fiscal year 2010-11, traffic volume on the Pennsylvania turnpike totaled over 189 million vehicles, including 165 million passenger vehicles (87%) and 24 million commercial vehicles (13%). The total net revenue generated from tolls in fiscal year 2010-11 was $763 million ($436 million or 57 % from passenger vehicles, and $328 million or 43% from commercial vehicles). An increasing percent of revenue (47% in 2011) goes toward debt service mainly due to the burdens of Act 44 – passed in 2007. (10) 4 But this is hardly a surprise given the structure of the Turnpike and its propensity to bond itself into financial servitude. Inviting more bond indenture for this crew was like asking an Edsel to tow a Pinto to a repair shop. The Philadelphia Inquirer’s Editorial Board concluded in 1997: Political considerations are routinely a factor in the turnpike's selection of bond underwriters, turnpike documents show. The documents list turnpike bond deals with the name of the underwriting firms, their share of bonds and their profits, and the political party that sponsored them. The commission has issued or refinanced more than $2b in bonds to pay for road projects since 1986 [without bids]. Turnpike officials said the bonds were split 50-50 between the parties...Several studies have concluded that municipal bond issuers pay significantly higher costs on negotiated underwritings, such as the turnpike's, than on competitively bid offerings.” (11) Since this Inquirer’s investigation was published, Pennsylvania has been served by four Governors, two Attorney Generals and experienced six toll increases. This year’s bump was actually more than the price of a gallon of gas. EZ-Pass customers now pay $3.98 more to cross the state or $30.17 while cash hostages were assessed at an additional $4.75 and pay $35.15. With health insurance outpacing inflation and property taxes steadily increasing, can consumers afford to drive on a road with never ending toll hikes? The uncomfortable irony is that toll hikes defeat the beauty and freedom that the Turnpike delivered in 1940. The Turnpike Mission is: “To operate and manage a safe reliable cost-effective and valued toll-road system.” Seventy-three years ago we figured a way to blow holes in mountains to connect people. Now we extort soccer moms to underwrite the politically disconnected. 5 Managers, Employees, and Lobbyists It’s difficult to imagine a more inefficient use of labor and toll dollars. Does the Commission really need 480 managers and 1,799 employees to staff, manage, and operate the Turnpike? That’s 2,279 employees making sure 546 miles of road run on time. (12) Or 4.17 employees (including one manager) per mile of toll road. In 1957 - under a Democratic administration - there were 1,560 employees at the Turnpike. Fifty years years later the number mushroomed to 2,279. By 1997 - under a Republican regime - the Turnpike was considered overstaffed when its employee/mile ratio was 3:1 compared to 1:1 at Penn DOT. Some bureaucratic whack job would view this as economic development. Staffing numbers decreased by 2011 as ATM’s supplanted ticket takers. “The turnpike’s workforce consisted of 2,104 employees as of May 31, 2011.”(13) Not bad if you don’t count the contractors, relatives and the 7,000 folks who “ride for free represented a 60-percent increase from 1997.” (14) Can you imagine how “efficient” our schools would be if we deployed one teacher for every four students? The student to teacher ratio in Pennsylvania for primary schools is 15 kids to one teacher. (15) In 2007 the Turnpike Commission reported 10 managers earning from $125,320 to $178,427.