Lawmakers shouldn't ignore broad impact of 'Pike' lease
Butler area state lawmakers have expressed concern about how Gov. Ed Rendell intends to deal with the issue of leasing the Pennsylvania Turnpike. Rightly so.
Lawmakers should have the opportunity to review all leasing proposals received before deciding whether to award the lease to the entity — domestic or foreign — that Rendell regards as having submitted the best offer.
The governor has said he would submit to the General Assembly only the offer that his administration deems best.
That issue aside, one ingredient in the proposal to lease the Turnpike that hasn't gotten enough attention is future toll increases.
Under the privatization plan the governor has put forth, the private operator would be allowed to increase tolls by 25 percent in January — assuming that the lease would be in effect by then — and then each year by either 2.5 percent or the consumer price index, whichever is greater.
Over the decades of the Turnpike's existence, the toll road has been able to operate with periodic toll increases. Under the lease proposal, there would be no respite from annual increases. It is doubtful that the private roadway operator would pass up any additional-revenue opportunity, considering its big outlay to lease the road.
House Majority Whip Keith McCall has said that to induce enough lawmakers to support privatization, bidders probably would need to offer nearly $30 billion to lease the 530-mile toll roadway.
A valid question then becomes how steadily increasing tolls, coupled with skyrocketing gasoline and diesel fuel costs, will affect Turnpike traffic volume, especially if Interstate 80 remains toll free.
For many people and trucking companies, using the Turnpike is an option, not a requirement. Steadily increasing tolls could hurt traffic volume.
"We as a legislature need to have all of the information available to us," said state Rep. Brian Ellis, R-11th. "(Rendell) has taken an agressive approach (regarding the proposed lease) that leaves the legislature out of it. It's very disappointing."
"This (Rendell's plan to present only the 'best' proposal) gives us no opportunity . . . to determine for ourselves which would be the better deal for Pennsylvania," said state Rep. Dick Stevenson, R-8th.
Lawmakers also must realistically consider what effect the big upfront toll increase and the seemingly never-ending subsequent increases will, because of their impact on traffic volume, have on the ability of the private operator to keep up with necessary maintenance and repairs.
The Pennsylvania Turnpike Commission can justifiably be criticized on a number of fronts, such as some no-bid constracts, favoritism or political patronage in hiring practices and the number of managers. However, it has made significant strides over the years in modernizing the highway — without annual toll increases such as those now being proposed as part of the lease arrangement.
Pennsylvania lawmakers often merit criticism for being too slow to act on issues, but in regard to leasing the Turnpike, haste should not take center stage.
As important as the amount of money that a lease would produce for the state is the financial impact on users, commercial truckers and everyone else — and how those higher tolls might negatively impact tourism and other state entities that depend on Turnpike traffic.
It is to be hoped that Butler County lawmakers are among those at the forefront in ensuring that the right Turnpike decisions are made. Simply being concerned about the way the Rendell administration is trying to control the issue is not enough.
