Home >  Local News >  Transportation

Sunday, January 13, 2002

By Joe Grata, Post-Gazette Staff Writer

Public officials with the determination and clout to build highways find ways to pay for them, no matter how many IOUs they have to print.

In the case of the Mon-Fayette Expressway and Southern Beltway, a 100-mile package of toll roads being planned, under construction or already open in several places, the politically appointed Pennsylvania Turnpike Commission has borrowed most of the first $1.5 billion.

Whether you knew, you've been repaying the loans (bonds) every time you buy gas and renew your license and plates -- $40 million each year as a result of a 1991 statewide gas tax increase and $28 million each year from 1997 increases in motor vehicle registrations and fees.

The turnpike has now submitted a 12-page document to the Southwestern Pennsylvania Commission, the regional transportation planning agency, laying out its official plan to raise an additional $2.5 billion to complete the two roads.

Once again, the turnpike proposes turning to banks and other financial institutions. Its plan depends on elected state and federal officials approving more transportation taxes to refinance existing bonds as well as issue new ones over the next 20 years.

Once again, you as a highway user would pay for the loans. You are government's collateral.

The debt would run through 2061, tantamount to a 60-year mortgage. If this were a house loan, the bank president would slam the door in your face.

But turnpike officials asked the Southwestern Pennsylvania Commission to approve the IOU-funding plan at its Feb. 25 meeting.

The plan can then be incorporated into a federally mandated draft environmental impact study to be released publicly in March for the 24-mile section of the Mon-Fayette Expressway from Route 51 in Jefferson Hills north to Pittsburgh and Monroeville.

The section is part of a large 70-mile toll road through Washington and Fayette counties, hooking up with Interstate 68 in West Virginia. The 30-mile Southern Beltway, not as far advanced, would follow the Allegheny-Washington county line to Pittsburgh International Airport. Don't look for the expressway to be finished to Pittsburgh before 2010, and the beltway before 2020.

Even with today's low interest rates, the total amount that would have to be repaid to borrow about $2 billion of the $2.5 billion needed to finish the toll roads would be about $4 billion. While supporters argue that the projects will stimulate economic growth and provide for the future, today's young people, their children and grandchildren would be paying off the bills, and paying tolls to drive the highways, too.

Keep in mind that before 1991, the Pennsylvania Turnpike Commission didn't have a penny to spend on the Mon-Fayette Expressway or Southern Beltway. Therefore, coming up with $1.5 billion thus far represents a monumental achievement.

The new turnpike plan assumes a lot. Perhaps you've heard the story about when you ass-u-me too much?

Critics and skeptics have been waiting for this day to see how the turnpike, its political allies and highway advocates proposed to raise the final $2.5 billion. Sell Philadelphia?

I've heard the question hundreds of times: "Where's the money?"

The Pennsylvania Turnpike Commission says here:

Public-private partnerships. These represent the value of right-of-way donations, tax increment financing and private contributions, such as 327 acres that a private owner has offered to donate for the Southern Beltway. $100 million.

Refinancing gas tax bonds. By 2013, the original bonds in the hands of investors would be called and new ones sold, based on the 1991 gas tax revenue, with repayment extended to 2053. $260 million.

Refinancing registration fee bonds. By 2021, the original bonds would be called and new ones sold, based on the 1997 registration fee increases, with repayment extended to 2061. $200 million. (Don't be shell-shocked; the year 2061 is not a misprint.)

TEA 21. Approval would be sought for the Federal Highway Act, which provided $5 million in both 1999 and 2000 under a "national corridor program," to provide $4 million in both 2002 and 2003. $8 million.

Special federal funds. Assumes "as more miles of expressway are finished, pressure will increase" on federal officials to deliver more "demonstration project" and "discretionary" funds through 2007. $90 million.

"Earmarked" federal funds. These funds would rely upon political clout of lawmakers to write special funding into transportation legislation for 2008-12. $105 million.

"Earmarked" federal funds. Ditto for 2013-17. $120 million.

"Earmarked" federal funds. Ditto for 2018-22. $135 million.

State legislated funds. Assumes "as more miles of expressway are opened to traffic, an increasing amount of pressure will be placed on local and state politicians to deliver." The document notes, "In 2003, a new governor and new Legislature will be in office," and they would be expected to make $28 million available annually in order to borrow more money. $463 million.

State legislated funds (2012). Assumes state lawmakers would agree to another $28 million a year. $463 million.

State legislated funds (2020). Assumes state lawmakers would agree to another $32 million a year. $502 million.

The total comes to $2.446 billion to pay for consultants, engineers, project administrators, attorneys, financial advisors, lobbyists, real estate agents, secretaries, clerks, managers, travel, property acquisition, utility relocation, hearings, meetings, materials, equipment, supplies and field offices.

Oh, yeah. Construction, too.

If you want details about project costs and the funding plan for the Mon-Fayette Expressway and Southern Beltway, you can visit the Southwestern Pennsylvania Commission's Web site at http://www.spcregion.org/. Then look under "Public Participation."

The information also is available at the Pittsburgh Planning Department, county planning offices in the nine-county area and at many public libraries. You can call the SPC at 412-391-5590, Ext. 333, to learn which libraries have the info.

Although the first public participation panel met on the toll roads funding plan last week in Washington, Pa., other meetings will be held at 6 p.m. Thursday at the Westmoreland County Courthouse, Greensburg, and at 5 p.m. Jan. 29 at the Regional Enterprise Tower, the former Alcoa Building, 425 Sixth Ave., Downtown.

You can let the Southwestern Pennsylvania Commission know what you think by fax, e-mail or letter between now and Jan. 31.

Plate du jour. I recently spotted the Pennsylvania personalized license plate PENZ FAN while driving on Route 30 east of Greensburg. Me, too!

Contact Joe Grata c/o The Pittsburgh Post-Gazette or e-mail him at jgrata@post-gazette.com . Not all transportation-related issues are addressed because of volume.