Monday, August 29, 2005

Gerald Baliles Proposes Interstate Tolling

Virginia could reap about $1 billion a year if it set up a network of tolling stations on the state's interstate highways, says former Gov. Gerald Baliles in an Aug. 23 letter to state Sen. John Chichester.

Baliles' proposal is directed at Chichester's Statewide Transportation Analysis and Recommendation Task Force (START), which holds its first meeting next month.

Writes Baliles: "When you dig into the statistics on vehicle miles traveled in Virginia, one fact jumps out. The vast majority of the growth is on the interstate highway system." Setting up 38 tolling locations would raise $1 billion a year, and tolls are indisputably a user fee, which has more political support than a tax increase, he says. "A billion dollars of new money annually, sustained over 12 to 15 years, for example, would give Virginia resources to address a long list of significant projects."

Among the projects are the Third Crossing in Hampton Roads, widening Interstate 81 in the Shenandoah Valley and a "long list" of road improvements in Northern Virginia, and some key rail projects.

The tolls - collected electronically - would average 85 cents, but could vary, such as lower tolls for commuter routes and higher tolls at border crossings, or different tolls for trucks, etc. Plus, tolls could be lowered across the board if another funding source were found for the $1 billion, Baliles says.

Baliles also proposes creating Port District Transportation Funds, tax districts that would use the revenues collected to build key infrastructure. Baliles uses as an example the $130 million Virginia spent in 1989 to upgrade Route 28 next to Washington Dulles International Airport, an investment that, a decade later, produced $6 billion in economic activity a year and $1 billion increase in property values, he says.

11 Comments:

At 2:25 PM, Blogger COD said...

Plus, tolls could be lowered across the board if another funding source were found for the $1 billion, Baliles says.

ROFL. That's a good one - tolls going down. Anybody know of a single instance of tolls being reduced because new funding was found, or the original project was paid for?

 
At 4:15 PM, Blogger Hydra said...

How can you collect tolls electronically on the interstates whwere many travelers are from out of the area. I know that some of the electronic toll systems are interoperable or widely used, but this could be a bit of a problem.

 
At 4:15 PM, Blogger Hydra said...

I think 95 in Connecticut did away with tolls - used to be known as the connecticut turnpike.

 
At 8:37 PM, Blogger Hydra said...

The nice thing about this is that a lot of the money will be paid by "other people". Virginia is a big state though, with only 38 toll booths it is easy to see how inequitable this could be or could become.

I still think it is better to tax cash flow directly, but travel is so closely connected to the economy that this might make a good proxy.

I'm not sure why some teenager idly making the circuit around town looking for girls should ride tax free and the trucker bringing in our meat and vegetables should get taxed because he goes throgh an intesection.

On the other hand this would pick up some revenue from people who are otherwise just passing through, so there are enough ups and downs with this to go around.

I presume the funds would be used only for transportation projects.

 
At 12:23 PM, Anonymous Anonymous said...

Yes I do know of an instance. Virginia Beach used to have tolls on what was I-44 to and from the Oceanfront, but took them down in the middle 90's after the road was paid for.

 
At 10:23 PM, Blogger Hydra said...

That's two. And weren't there tolls in Petersburg once upon a time?

 
At 8:22 AM, Blogger J.R.Hoeft said...

There were also tolls on the tunnels here in Hampton Roads...and those tolls are being revisited. The Chesapeake Bay Bridge-Tunnel just raised its toll to $12 -- one way. This kind of keeps the Eastern Shore undeveloped.

At any rate, never had a problem with EZPass on my commutes from Newport, RI here to Norfolk. Thought that it was a great idea for the frequent traveler.

For the infrequent traveler, they will still be stopping at the toll booth. The hassle is not all that great. Most toll booths I transited in New York, New Jersey, Delaware, etc. were fairly expeditious.

Just traveled the ultimate toll road -- the PA/OH turnpike. Traffic still is heavy, so I can't imagine how much money the states must rake in from those roads.

Travelers -- especially those using I-95 as a thoroughfare -- would not think much of paying $5 to cross the state.

The internal rate should be minimal (ex. getting on in Emporia and off in Alexandria could be miniscule, say $0.50?).

 
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