Act 44 of 2007

Act 44 of 2007 was a landmark piece of legislation enacted by the Pennsylvania General Assembly to address a critical funding shortfall for the state's transportation infrastructure. Signed into law by Governor Ed Rendell in July 2007, it established a complex public-private partnership between the Commonwealth of Pennsylvania and the Pennsylvania Turnpike Commission. The act's primary mechanism involved leveraging toll revenue from the Pennsylvania Turnpike to generate billions of dollars for roads, bridges, and mass transit systems across the state, fundamentally altering the financial landscape for the Pennsylvania Department of Transportation.

Background and legislative history

The impetus for Act 44 stemmed from the collapse of a prior proposal to lease the Pennsylvania Turnpike to a private consortium, an idea championed by Governor Ed Rendell but met with significant resistance in the Pennsylvania General Assembly. Facing a dire report from the Pennsylvania Transportation Funding and Reform Commission which highlighted a massive funding deficit, legislative leaders, including Representative Keith R. McCall and Senator Joseph B. Scarnati III, negotiated a compromise. The legislative vehicle, House Bill 1590, was fast-tracked during the summer of 2007, bypassing the typical committee process in the Pennsylvania House of Representatives. It received final approval and was signed by Governor Ed Rendell on July 18, 2007, as a direct response to the failed Interstate 80 tolling plan and intense lobbying from entities like the American Public Transportation Association.

Key provisions and amendments

The core provision of the act required the Pennsylvania Turnpike Commission to make substantial annual payments to the Pennsylvania Department of Transportation. These funds, initially set at $750 million and later increasing to over $900 million, were to be raised through significant toll increases on the existing Pennsylvania Turnpike and, most controversially, by imposing tolls on Interstate 80. The act amended the Turnpike Commission Act to grant the commission jurisdiction over Interstate 80. Other key amendments involved the creation of a dedicated funding stream for agencies like the Southeastern Pennsylvania Transportation Authority and the Port Authority of Allegheny County, while also allocating funds for statewide bridge projects and local road maintenance under Act 89 of 2013.

Implementation and administration

Administration of Act 44 fell primarily to the Pennsylvania Turnpike Commission and the Pennsylvania Department of Transportation. The commission immediately implemented a series of scheduled toll hikes on the Pennsylvania Turnpike, which began in 2009. Its most ambitious task was preparing to convert Interstate 80 into a toll road, a process that required approval from the Federal Highway Administration under the Tolling Pilot Program. The Pennsylvania Turnpike Commission submitted a detailed application to the Federal Highway Administration and entered into a Memorandum of Understanding with PennDOT. However, the central premise of tolling Interstate 80 was never realized, crippling the act's financial model and leading to continued debt issuance by the commission.

Impact and analysis

The impact of Act 44 was profound and multifaceted. It successfully generated over $7 billion for transportation projects between 2007 and 2013, funding critical work for the Pennsylvania Department of Transportation and providing stability for transit agencies like the Southeastern Pennsylvania Transportation Authority. However, it also placed a massive debt burden on the Pennsylvania Turnpike Commission, which saw its outstanding liabilities skyrocket. Economists and groups like the Commonwealth Foundation criticized the act for creating a unsustainable cycle of borrowing and toll increases. The failure of the Interstate 80 tolling plan rendered the original funding model untenable, directly leading to the passage of Act 89 of 2013, which replaced Act 44's funding mechanism with increased fuel taxes and vehicle fees.

Legal and political challenges

Act 44 faced immediate and sustained legal challenges. The most significant was the repeated rejection by the Federal Highway Administration of Pennsylvania's application to toll Interstate 80, culminating in a final denial in 2010. The FHWA ruled the proposal did not meet the strict criteria of the Interstate System Reconstruction and Rehabilitation Pilot Program. This decision was a major political defeat for Governor Ed Rendell and legislative leaders. Subsequent lawsuits, including actions by toll payers and advocacy groups, challenged the constitutionality of the toll increases and the commission's debt. The ongoing controversy heavily influenced the transportation funding debate that resulted in Act 89 of 2013 under Governor Tom Corbett.

Category:2007 in Pennsylvania law Category:Pennsylvania statutes Category:Transportation in Pennsylvania