Pennsylvania Turnpike's finances headed south, audit finds

[TexasTowelie]

PITTSBURGH - The Pennsylvania Turnpike Commission's level of debt is "potentially unsustainable" because projected toll increases could lead motorists to find free alternatives, the state Auditor General's Office said in an audit released Tuesday.

Auditor General Eugene DePasquale said at a news conference that his auditors found that the turnpike's financial health has deteriorated substantially since 2007, when the legislature began requiring the agency to make payments of $450 million a year to PennDot. The commission has had to borrow a substantial part of that money, and its annual debt payments are about $600 million of its $980 million annual budget.

The audit found the commission's net position - assets minus liabilities - has "spiraled" from $1.76 billion in 2007 to negative $4.11 billion in 2015. This has occurred despite the commission's raising tolls nine years in a row.

"In order to meet its debt payments, the commission is expected to increase tolls each year through 2044, which is burdensome for travelers," the audit said. "In addition, it is necessary for traffic volume on the turnpike to also continue to increase.

Read more: http://www.philly.com/philly/news/20160907_Pa__Turnpike_s_finances_headed_south__audit_finds.html

[Curmudgeoness]

1. I also heard that they are required

to fund subsidies for mass transit out of their budget now. Funny how they never talk about increases to the bus rates. I know a rather wealthy woman in Pittsburgh who says that she can get greatly discounted rates on buses there, even though she could afford to pay more---just because she is over 65.

I don't live close to the turnpike, so I don't use it often, but listening to Pittsburgh radio, it seems that a lot of the people there have found other routes to take when they travel, if they can. They used to jump on the turnpike, but avoid it now. There is a point where you price yourself out of the market, and it is time for the legislature to do something to relieve this.