Expert: I-80 data on tolls is flawed

The speaker said there’s never been a successful conversion of a free highway to a tolled one.

SPECIAL TO THE VINDICATOR

HARRISBURG — An independent expert in the field of public-private partnerships and infrastructure investment projects says he has serious concerns about the credibility of the information used in the Pennsylvania Turnpike Commission’s revised application to toll Interstate 80.

That’s according to Pa. state Rep. Dick Stevenson of Grove City, a member of the Policy Committee and outspoken advocate against the tolling.

Brian F. Chase, an independent consultant who specializes in creating and implementing strategies for financing and development of large infrastructure projects, reviewed information submitted to the Federal Highway Administration to authorize the tolling of I-80 and told the House Republican Policy Committee his various concerns with the application.

“Mr. Chase, who has extensive experience in the field of transportation investments, told us that I-80 is a ‘poor choice’ for tolling,” Stevenson said. “In fact, he testified that to his knowledge, there has never been a successful conversion of a free highway to a tolled highway. He does not believe I-80 will be the first model, especially considering the large extent of public opposition to the plan.”

In addition, Stevenson noted that Chase’s testimony referenced a serious lack of credibility on the part of the investment group hired by the Turnpike Commission to determine a fair market value of the interstate. That information was necessary in the resubmitted application as it was one of the main reasons why the federal government rejected the first two versions.

The Turnpike Commission hired Provident Capital Advisors of Baton Rouge, La., to assess a fair market value. Just days before Provident Capital was hired, its name was Provident Health Care Coalition LLC, and the firm had no documented expertise in any type of transportation investment projects. It specializes in health care and prison housing.

“Chase told us that it would be more appropriate for the FHWA to hire its own consultant to determine the highway’s free- market value and to then bill the Turnpike Commission,” Stevenson said, noting that the lease agreement between PennDOT and the Turnpike Commission should have been subject to third-party competition. “He clearly stated that the federal government will consider the public uncertainty over promised improvements to the highway, especially considering that toll revenues will ultimately benefit urban mass-transit systems.”

The Policy Committee invited representatives from Provident Capital and PennDOT, Pennsylvania’s primary transportation authority, to testify at the hearing, but both declined.

“We also learned that Pennsylvania has a ‘red flag’ over its head when it comes to credibility, judging from the criminal investigations focusing on the Turnpike Commission and other significant ethical lapses among turnpike personnel,” Stevenson added. “Today’s hearing was very informative and exemplifies the many weaknesses, especially the credibility of Provident Capital, when it reviews the application, and sees the lack of merit within the tolling proposal.”