Historical and Contemporary Toll Revenue Uses

Abstract

Given the current climate favoring increased reliance on user fee facilities, it may be important to review limitations placed on revenues collected by existing toll facilities, as well as the opportunities that have allowed for expanded roles of these authorities. Common uses of toll revenues today, aside from debt retirement, can be grouped into four categories: subsidy of transportation and transit programs; expansion of state highway systems; support and improvement of other state transportation projects; and investment in ventures to promote economic growth and development. The rationale behind these uses may be of interest when considering administration of revenue collected through congestion and road-pricing programs. Congestion and road-pricing programs could gain greater acceptance if surplus revenues could be channeled into transportation infrastructure investments; improved transit service frequency, operating times, and coverage areas; investments in ridesharing initiatives; and mitigation of impacts on disadvantaged groups. In recent times, as the initial financing debts of toll facilities are retired, some state legislatures have elected to keep tolls on these highways and expand the responsibilities of the toll agency. In some states, the operations of toll facilities have become integrated with state transportation departments, and excess toll revenues are pledged either toward bonds for projects to be undertaken by the department or to take the place of the state's interest in the issuance of debt. The Intermodal Surface Transportation Efficiency Act of 1991 has provided the basis for changing the relationship between the states and toll authorities; innovative finance methods are encouraged to achieve infrastructure improvements that can no longer be accomplished through traditional public taxation mechanisms.