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Funding Transit With Proceeds From Road Privatization

Posted by: Christian Madera

24 May 2007 - 5:00am

A proposed long-term lease of the Pennsylvania Turnpike could provide close to $1.7 billion a year -- funding the state's transit and road needs without the need for additional taxes.

"A long-term lease of the Pennsylvania Turnpike could generate enough revenue on its own to meet public-transit and roads and bridges funding needs identified by the state, according to a report released on Monday.

A lease, which was pitched in Gov. Ed Rendell's proposed state budget and has won little favor with legislators, could raise an estimated $1.7 billion annually. It could also eliminate the need to fund transportation through other sources, including a new tax on oil companies proposed as part of the governor's budget plan.

In an analysis of three transportation funding options conducted by Morgan Stanley & Co., the lease came out on top, the governor said."

"With a June 30 budget deadline looming for the state general budget, the Port Authority, SEPTA and many state transit agencies, legislators are still at work on finding a solution to the state's transportation funding needs."

Full Story: Report says turnpike lease could fund public transit as well as roads needs
Source: Philadelphia Business Journal, May 22, 2007
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Leasing the PA Turnpike

Submitted by Ken Firestone on Thu, 05/24/2007 - 09:23.

Will the lease pay the same irregardless of how many tolls the private company collects? What happens if rising gas prices reduce the number of trips, and tolls, and the company defaults?

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Areas well-served with public transit and nearby jobs and services simply require less travel because residents have the option of walking, riding a bike, taking public transit, or driving.
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