CON Position By Greg Cohen American Highway Users Alliance ADC Conference Denver September 19 2014 Background The HwyUsers Alliance is proud to be a sponsoring organization of ADC Great issue for this group ID: 622206
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Slide1
The Great Debate on Tolls & PPPs
“CON” Position
By Greg Cohen
American Highway Users Alliance
ADC Conference – Denver
September 19, 2014Slide2
Background
The HwyUsers Alliance is proud to be a sponsoring organization of ADC
Great issue for this group!
Not a partisan issue
Quick points of philosophical agreement:
We both support more freedom of mobility
We both oppose waste and bureaucratic excessSlide3
Limit Tolling
While some tolling and PPPs can add value to users, there are many temptation to fleece us
By limiting the types of tolling projects there is a better chance of good outcomes:
Building new roads (more quickly too)
Adding tolled express lanes
Converting underutilized HOV lanes to HOT lanes
Even in these cases, road users must be protected!
No non-compete agreements or similar arrangements.Slide4
Differences of Opinion
Oppose the conversion of existing free lanes
Oppose “long-term” leases for lump upfront cash (both public and private)
On diversion:
D
on’t trust toll operators more than tax collectors
Tolls are more regressive than fuel taxes
Safety impacts from diverted truck traffic are a cost
Enviro
. groups like EDF love pricing as a means to do social engineering & oppose physical capacity
Oppose “balkanization” of the StatesSlide5
A little history
98 years ago: Fed. Aid Hwy Act of 1916 creates Fed-State partnership to fund the national connected highway network. Tolls banned if federal funds used.
1927 – Relaxed ban on bridges but tolls had to be lifted once bridge bonds are paid.
1956 – Grandfathered toll roads onto Interstate System routes
1987 – Program to permit tolls on non-Interstate routes
receving
fed-aid. Slide6
Recent history
1998 – Pilot program for up to three Interstate routes to convert to tolls (no diversion / last resort for funding)
2012 – MAP21 permits unlimited tolling of new capacity only.
2014 – Obama Administration proposes allowing tolls anywhere on the Interstates, and
permiting
diversion of the tolls to transitSlide7
Highway Robbery
Yesterday, The HwyUsers entered an Amicus Brief in support of the users of the Dulles Toll Road
Cato & the Recreation Vehicle Industry Association joined the brief
A long-term concession agreement between VDOT & MWAA left toll road users with a 466% increase in tolls since 2005.
The tolls were continually raised to pay for rail to the airport. Road users have no ability outside the courts to effectively fight the toll increases.Slide8
Diversion of tolls is not confined to this
i
solated
c
ase
PANY&NJ divert tolls for PATH trains and the WTC
Since Robert Moses left, the
Triborough
Bridge and Tunnel Authority under MTA diverts its revenue to the New York Subway
A few miles of I-95 in Delaware pays for much of the State government on the backs of motorists.Slide9
Under Obama’s Plan “Bad” toll projects just as likely to be the norm as “Good” toll projects
Examining recent tolling attempts on the I.H.S.
I-80 in Pennsylvania
I-95 in North Carolina & Virginia
I-90 in Washington State
NJ 440 into Staten Island (combined with concession agreement on GS Pkwy & NJ
Tpke
)Slide10
Why it’s so Easy for Good Toll Ideas to Go Bad:
Crony capitalism:
Monopolies, whether public or private, are NOT market based.
Public officials who are weak & afraid
Don’t tax me, tax the guy behind the tree!
Windfall revenues from long-term leases
Less opportunity for taxpayers to question rates, particularly under a concession.
Some toll authorities keep their books closed to the public and their mischief can’t be uncovered.
Tolls can be used for social engineering.
Tolls harm a captive population of road users.Slide11
Conclusions
No system is perfect
Taxes are diverted.
Tolls are diverted too.
The Obama plan to allow tolling of any or all Interstates creates dangers for motorists.
Federal program must be reformed to restore the trust in the Highway Trust Fund and taxes must be adjusted to deal with needs, inflation, and increased fuel economy.
In the limited cases where toll and PPP plans add more value to motorists, Congress must still maintain its constitutional duty to regulate interstate commerce and taxpayers must still have means to address grievances. Slide12
THANK YOU
Contact Greg Cohen @ gregcohen@highways.org