Time running out for debt relief to defer Mass Pike toll hike, pols posture

Massachusetts senate president Therese Murray (Dem) put out a statement today that got her headlines in Boston such as "Murray vows no toll increase on Turnpike." Her statement is headed up: "Senate will not support toll hikes". She fiercely attacks the state Governor Deval Patrick (Dem) claiming he had made a "threat" Tuesday to raise tolls, accusing him of "scare tactics."

Actually Therese Murray's Senate has no power over toll rates. Its "support" is not needed. Under existing Massachusetts state law toll decisions are made by the board of directors of the Massachusetts Turnpike Authority which although threatened with disbandment continues to be in charge of the Turnpike. And the Governor only has indirect influence through his secretary of transportation who chairs the Turnpike board.

The Governor's so-called "threat" of a toll increase and "scare tactics" in Murray's characterization consisted of pointing out that without agreement in the legislature on revenue measures to take over some of the debt burden of the untolled Big Dig the Turnpike faced insolvency and a default, and the board would therefore likely make major toll increases.

The Turnpike board actually voted Feb 25 for stepped toll increases to apply March 29 and July 1.

At the major Boston Extension plazas at Alston/Brighton and Route 128 Massachusetts transponder or FastLane tolls would rise from $1.00 to $1.25 3/29 to $1.50 7/01. Cash/out-of state E-ZPass tolls would increase more and harbor tunnel tolls would approximately double by the second half of the year.  see table nearby

see Feb decision

http://www.tollroadsnews.com/node/4025

In March the governor Deval Patrick, the senate president Therese Murray and the House speaker Robert deLeo said they had reached agreement on relieving the Turnpike of $100m in annual debt service costs incurred on the Big Dig. On that basis the Turnpike Board met and deferred the March toll increases, but the resolution left the full increases in July on the books in case the politicians welshed on their $100m promise.

see March decision to defer the 3/29 toll increase

http://www.tollroadsnews.com/node/4072

True to form they're welshing, and blaming one another.

Said Senate president Murray today: "The public cannot be expected to take on any additional burdens, like a toll increase, when they are already being asked to make significant sacrifices for the greater good of the Commonwealth (state)."

The Governor proposed raising money to take over Turnpike debt and fill other financial holes with a 19c/gallon increase in the state's gasoline/diesel tax. The Senate and House rejected any motor fuel tax increase and want instead to raise the state sales tax from 5.0% to 6.25%, which the Governor says he'll veto. 

It's a stalemate among the three Democrat Party dominated branches of government.

There is almost agreement on changing the names of state agencies to merge the Turnpike into state highways and transit into a new mega-agency in the name of "reform" - a reform which will increase costs substantially over about two or three years, while supposedly offering economies of scale some time later.

Empty rhetoric (ADDITION)

If politicians like Murray wanted to put some content into their vague talk of reform they'd be discussing some of the excesses of spending at the Turnpike that seem to be result of labor contracts - for example the scandal of 172 state troopers on the Turnpike payroll making $26m last year or an average of $151k each. The 65 highest paid people on the Turnpike staff - paid more than the executive director, the chief financial officer, head of engineering  the head of operations and the legal counsel - were cops. Of nine Mass Pike employees taking home over $200k all were cops, two lieutenants, six of them sergeants and one a trooper. They were running up fantastic amounts of overtime!

A bunch of cops at the Turnpike is costing more than the core function of toll collection.

http://www.tollroadsnews.com/node/4160

Not a word was breathed of this police racketeering at the Turnpike in the politicians lofty talk of "reform."

"Going right up to the wire"

Turnpike board member Mary Connaughton told us today that the legislature and the executive are "going right up to the wire" in their arguments over raising revenue to relieve the burden of Big Dig debt at the Turnpike.  She thinks that the crisis in the state budget is so severe it will likely preclude revenue measures to relieve the Turnpike's debt, as promised.

She says the Turnpike Authority is likely to be around until at least the middle of 2010 because of the complexity of refinancing the Turnpike's $2.5b of debt.

Toll increases preferred by Boston Post readers 55/45 over taxes

Meanwhile a Boston Post poll of readers says they favor toll increases over gas/diesel tax increases by 55/45. see barchart nearby

ADDITION: Noah Bierman of the Boston Globe reports the Turnpike Authority is already getting new toll tickets printed at the higher toll rates to be used if the Authority sticks with decision to raise tolls July 1.

TOLLROADSnews 2009-05-27 ADDITIONS 2009-05-28 14:10