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Thompson addresses I-80 tolling after commission re-submits applications |
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Local Content -
Local News
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Written by Matthew Steffy
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Tuesday, 30 June 2009 |
Congressman Glenn Thompson (left) addressed a gathering of businessmen and residents concerned over the possible tolling of I-80. Joining Thompson at the conference was Clarion Mayor John Stroup (right). (Photo by Matthew Steffy/The Punxsutawney Spirit)
CLARION — Round two of the Interstate 80 toll debate is now underway. The Pennsylvania Turnpike Commission is in the process of re-submitting applications to toll I-80, and United States Rep. Glenn Thompson acknowledged the returning possibility of tolling the road during a conference held Monday at the Holiday Inn in Clarion titled "Your Input on I-80."
"There have been many people fighting I-80 tolling since its inception summer: 2007," Thompson said. "Toll is a four letter word, but in this case, it's used as code for a three letter word: Tax. Taxing people who live and work along I-80.
"This tax would be a lose-lose for the Commonwealth of Pennsylvania. We've won a few of the battles along the way, but there is still a cloud hanging over the state."
According to Thompson, the Federal Highway Administration (FHWA) requires toll money to be spent on the road that is tolled, or roads that connect with the tolled road, Thompson said.
When the FHWA rejected the original proposal, local government officials immediately began working to prevent similar state action from passing.
"We know that the FHWA rejected the bid proposal that the Pennsylvania Turnpike Commission (PTC) put to the Federal Highway Administration," said John Stroup, mayor of Clarion.
"That was September 11 (2008). September 12, a few of us through the Clarion Chamber and Clarion Economic Development Corporation sat down knowing that it wasn't over. That's why we're here today."
"This is not an issue that's going to go away," Thompson said. "This is an issue of funding gaps created through years of mismanagement."
Stroup says that the PTC believes "the current Washington administration will give them a free pass on the tolls."
"The biggest reasons that proponents of tolling give for tolling is that they want I-80 to pay for itself," Stroup said. "In other words, they want us to pay our own way."
Thompson mentioned that proponents of tolling also claim that out of state truckers are not adequately paying for the use of the road. He refuted this claim with the example of Strimbu Trucking Company, whose owner — Bill Strimbu — was present.
Strumbu said that his business, which is located in Ohio, contributes to Pennsylvania roadways, and that tolling I-80 would only hurt his business and the communities surrounding I-80.
"I'm one of those companies that uses I-80 everyday," Strimbu said. "Most of our customers are in Western Pennsylvania. We're running about 125 trucks right now. Last year, the Pennsylvania Turnpike, which we travel quite frequently, cost my company roughly $175,000. Our fuel taxes that we paid in Pennsylvania last year — when we ran 2,652,000 miles in the state — was $154,284."
Strimbu added that the license plate registration fees for his trucks, done through an international registry, are divided into several states, including Pennsylvania. The amount contributed to Pennsylvania was more than $54,000.
"Just for the state of Pennsylvania, our cost exceeded $394,000," Strimbu said.
"So you can imagine I was a little bit hot when I heard when I was told that out-of-state truckers don't pay their fair share."
Strimbu added that his company tries to avoid the turnpike because all toll costs have to be absorbed by the company, and cannot be passed on to the consumer because of the recession. This leads to problems on smaller, municipal-maintained roads.
"What we've done in the recessionary period, which most trucking companies do, is we stay off toll roads wherever we can," he said. "So that puts our equipment on secondary roads — congested areas. When we do a cost/savings analysis, it's better to divert than to pay excessive tolls."
In addition to safety and tax concerns, speakers at the conference stated that tolling I-80 would have drastic negative effects on the state's economy.
Three such speakers were Dick Beach, CEO of George Howe Company, Tony Mazzocchi, sales manager of Commodore Homes, and Pat Kahle, owner of Zacherl Motors.
"We supply products to people from the Ohio Valley to the New Jersey shore," Beach said. "Our trucks travel thousands of miles each week on I-80. The actual tolling expense for the Howe company will be six figures per year by the time all of the preset tolls are implemented. Even today, the amount we would spend on tolls would run into the tens of thousands of dollars."
Beach added that the issue of maintaining state roads usually brings up the question of where funding will be obtained.
"The solution is often to tax the people who can put up little or no opposition and have few, if any, viable alternatives," he said. "The financial impact on businesses and consumers, if tolling occurs, is absolutely staggering. The direct and indirect cost can only be measured in the billions of dollars. Consumers will pay more, jobs will be lost and businesses will suffer."
Mazzocchi believes that the principal selling point of Commodore Homes, affordable housing, could be compromised if I-80 tolling is passed.
"Our market area extends from Ohio to Maine, all the way down to Delaware." he said. "We ship approximately half of those across I-80, either east bound or west bound. The toll increase on these homes shipping out will have a direct reflection on the price of these homes. That cost will have to be passed on to the customer.
"Additionally, about 90 percent of our materials we receive in all four plants come in on I-80. So all of the materials that we receive are going to go up in cost as well, and that goes to bottom line. Again, that hurts affordable housing."
Like Strimbu, Kahle believes that the state receives enough tax revenue from those who use I-80 to more than adequately maintain the road.
"Never in the history of our business has there been legislative action that so threatened our industry than this proposed tolling," Kahle said. "There is a list of fees that truck owners already have to pay to various forms of government to gain the privilege to do business in this commonwealth.
"You can ascertain that drivers certainly aren't getting that free ride that Gov. Rendell and the short-sighted lawmakers that dreamed up this peace of legislation seem to think they're getting," Kahle said.
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Last Updated ( Wednesday, 01 July 2009 )
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