PA Turnpike makes final large payment to state, plans to ease toll increases

Middletown, Dauphin County — Today marked a crucial step for the Pennsylvania Turnpike that could potentially save drivers some cash in the long run. For the last time, the turnpike paid out a $450 million payment to the state.

“Our customers have done their part and have paid more than their fair share,” said Pennsylvania Turnpike CEO Mark Compton.

Before anyone strikes up the marching band, toll prices will go up next year by five percent and five percent until 2025. But then, there will be a reduction in the increase for drivers. No longer will this road have a major burden to pay for transit across the state, meaning more investment into its own infrastructure and less investment from its users.

“It’s a long road ahead of us and unfortunately for our customers, they will not feel direct relief. However, our annual toll increases will be less and less as we proceed through with paying off our debt,” said PA Turnpike Chief Engineer Bradley Heigel.

Over the past 15 years, under Act 44 signed into law in 2007, the Pennsylvania Turnpike, a private entity, has paid PennDOT and the state nearly $8 billion dollars. Today, marked the end of the annual $450 million payments.

But the financial obligations will be felt across the system for the next 30 years. Because of these annual payments, the system has taken on over $14 billion in debt. That’s a lot of numbers, with the most important for drivers, coming to their wallets.

For users, with this payment done and dusted, yearly price increases will decrease. Annual five percent increases will stay into effect until 2025. That will drop to 4 percent in 2026, 3.5 percent in 2027 and three percent in 2028 through 2050.

“Today, I'm here to say that we can move forward from this obligation. Stop just managing and preserving the asset, but begin to improve and significantly start to grow our 80 year old system,” Compton said.

Still, for the next 30 years, the turnpike will be forced to pay off its debts while still investing in the road. Thus prices will still increase. But, starting next year and into the future, the system will be able to upgrade some much needed bridges, tunnels and expand the road.

Starting next year, that annual obligation to the state will plummet to $50 million a year, opening up the chance for the road to focus on reconstruction rather than rehabilitation. Over the past 15 years, because of these huge payments, the turnpike has avoided taking on projects like replacing the Delaware River Bridge, improving the tunnels and building new interchanges. With this new found money, those opportunities will now exist.

“With the sun setting on Act 44, and the significant reductions of our future obligations, our focus now moves through our total reconstruction program,” said Rick Dreher, PA Turnpike CFO.

Too help save money, since 2002, the turnpike has reduced its workforce by 50 percent with cashless tolls playing a huge role.

ncG1vNJzZmivmpawtcKNnKamZ56axLR7y6iamqRfpa5uwNSrpamhm5p6rq3Knqpmnpmjrq15y5qpoJ1dpa66ucSnq2asn2LAta3TnmSppJGjwG7AzmacmquVYsGwuMtmoKebopqutLHS