Owner-Operator Independent Drivers Association
1 NW OOIDA Drive, Grain Valley, MO  64029    
Web site: www.ooida.com

Contact: Norita Taylor, norita_taylor@ooida.com 
Headquarters: (800) 444-5791

 

(Bloomberg, PA, Oct. 26, 2007) – Representatives from the Owner-Operator Independent Drivers Association (OOIDA) spoke at a hearing held by the Pennsylvania Republican House Caucus today. They protested efforts to impose tolls on Interstate 80 in Pennsylvania, as well as the signing of a half-century long lease of that highway that assumes tolling authority will be granted to the Pennsylvania Turnpike Authority. Points of contention include the lack of public scrutiny, safety issues and the assured dramatic costs that will beset the citizens of Pennsylvania.

“There needs to be an examination of how current resources are being used before the public is asked to pay more for a system of financing that the public is beginning to question and distrust,” said OOIDA Executive Vice President Todd Spencer.

“There is no doubt that converting I-80 into a toll road will have a devastating economic impact on small business professionals like our members, on the trucking industry and on the Commonwealth as a whole,” added Spencer. “There are far too many public officials that are either unwilling to tighten their belts and put highway funding actually towards highways or simply are just looking for a quick fix to funding problems while they are in office, regardless of the impact on the future of the Commonwealth.”  The association contends that the solution is also not found in the sale or lease of the Pennsylvania turnpike.

Last week, the Pennsylvania Department of Transportation and Pennsylvania Turnpike Commission signed a 50-year lease based on tolling I-80. Neither organization has been granted the authority by the Federal Highway Administration (FHWA) to move ahead with tolling. Thus far, public officials have refused to release a copy of the lease.  A summary of the lease was supposed to be posted on a web site according to a news release from the turnpike commission, but no information has been published to date. 

 

EDITOR’S NOTE: Below is the full testimony presented by Mr. Spencer.

The Owner-Operator Independent Drivers Association is the national trade association representing the interests of small-business trucking professionals and professional truck drivers. OOIDA was established in 1973 and is headquartered in the greater Kansas City, MO, area. The Association currently has more than 7,500 members in Pennsylvania as well as over 157,000 members in the United States.

TO UNSUBSCRIBE: You may opt out of future email news releases simply by replying to this message with your request to be removed from distribution.

Testimony of

TODD SPENCER
EXECUTIVE VICE PRESIDENT
OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION

Before the
REPUBLICAN POLICY COMMITTEE

Regarding
TOLLING OF INTERSTATE 80

OCTOBER 26, 2007

Submitted by

Owner-Operator Independent Drivers Association
1 NW OOIDA Drive
Grain Valley, Missouri 64292
Phone: (816) 444-5791
Fax:    (816) 427-4468

Good morning Representatives Turzai, Millard, and Hutchison. Thank you for inviting me to testify this morning.  The effort to impose tolling on Interstate 80 has obviously garnered a tremendous amount of attention as the Commonwealth of Pennsylvania faces difficult decisions related to its funding needs for roads, bridges and tunnels.

My name is Todd Spencer.  I have been involved with the trucking industry for more than 30 years, first as a truck driver and owner-operator; and then as a representative for our nation’s small-business trucking professionals and professional truck drivers.  I am currently the Executive Vice President of the Owner-Operator Independent Drivers Association (OOIDA).

OOIDA is the national trade association representing the interests of independent owner-operators and professional drivers on all issues that affect small-business truckers for nearly 35 years.  The more than 157,000 members of OOIDA are small-business men and women in all 50 states who collectively own and operate more than 260,000 individual heavy-duty trucks.  Owner-operators’ trucks represent nearly half of the total number of Class 7 and 8 trucks operated in the United States. As citizens of Pennsylvania are well aware, trucking is significant to their economic wellbeing.  As of today, OOIDA has over 7,500 active members across the Commonwealth of Pennsylvania.

The Association actively promotes the views of small business truckers through its interaction with state and federal regulatory agencies, legislatures, the courts, other trade associations and private entities to advance an equitable business environment and safe working conditions for commercial drivers.  Tolling and all other highway-funding mechanisms used by the federal and state governments have a direct impact on the livelihoods of all truckers.

As such, OOIDA has been engaged in the debate regarding the imposition of tolls on existing non-tolled highways for quite some time.  OOIDA also played an integral role in the formation of the Americans for a Strong National Highway Network – a coalition of national organizations representing a full range of highway users that are working together to oppose the outright sale of public highways to private companies, while also working to identify viable funding solutions for our nation’s infrastructure needs.

The Interstate Highway System has been a major factor in boosting the United States of America to its present position of international economic dominance.  It has been the central element of a coordinated infrastructure network that provides the country with the ability to efficiently move people and resources to workplaces and finished products to consumers with ever-increasing speed and reliability.  The resulting economic activity has created a quality of life that is envied throughout the world.

It is no secret how important Interstate 80 is to this national system. The amount of interstate and intrastate commerce transported on this highway is staggering and the significant economical value of that commerce is obviously immense, not only to the Commonwealth of Pennsylvania, but the entire country as well.

With this in mind, we are continually amazed and saddened by the blatant disregard for the public good that has been exhibited by Governor Rendell, PennDOT and the Pennsylvania Turnpike Commission in regards to the future of I-80 and for that matter, the Pennsylvania Turnpike.

All the roads that the motoring public drives on are taxed through fuel taxes, excise taxes, tire taxes, and heavy vehicle use taxes.  It is the responsibility of the Commonwealth to determine priorities in funding, and how best to use the resources provided to continue to move the State.  No doubt there are needs, and no doubt the willingness of highway users to pay for those needs, but there needs to be an examination of how current resources are being used before the public is asked to step up to the plate and pay more (tolls are taxes) for a system of financing that the public is beginning to question and distrust today.

Tolls represent double taxation.  Highway users currently pay more than $35 billion annually in federal fuel taxes and other fees to support highway maintenance and construction.  In addition, motorists contribute more than $50 billion each year in state and local highway user fees.  Imposing tolls on existing Interstate highway lanes on top of these fees would be unfair and inequitable, and would prove to be a very difficult burden at a time of record high fuel prices. There is no doubt that converting federally funded highways into toll roads will have a devastating economic impact on small business professionals like our members, on the trucking industry, and on the Commonwealth as a whole.

Imposing tolls on Interstate 80 more than just a bad idea, it is one with potentially dangerous ramifications.

As has been seen time and again elsewhere that tolls have been imposed on heavily trafficked roadways, traffic will divert to other, often less safe roads.  Implementing tolls force traffic to utilize alternative that are not designed for the increased volume.  The decision of truck drivers to use these less suitable routes is not based on an attempt to maximize their profits; rather it’s an exercise in survival.  The higher tolls impose a severe financial hardship on small business truckers who are already coping with narrow to non-existent profit margins. 

For example, the State of Ohio significantly reduced tolls on the Ohio Turnpike a few years ago after finding that large percentages of trucks were using alternate, non-tolled routes.  One such alternate route had a fatal accident rate that was 17 times higher than the Ohio Turnpike’s rate.  Diversion of traffic will also affect the financial stability of companies that depend on Interstate highway travel, such as truck stops, motels, restaurants or gas stations. 

Act 44 & the leasing of I-80

Act 44 and its provisions for the tolling of Interstate 80 was a backroom business deal that was passed without a public involvement.  In fact, some could argue that most PA citizens still think this is a proposal and don’t realize this is a done deal.  The 50-year lease between two public entities, PennDOT and the Pennsylvania Turnpike Commission, was signed shortly thereafter, and to this date, hasn’t been made public.   It is appalling that the Pennsylvanian lawmakers make these sorts of deals and lock the citizens of the state into a contract for the next half a century.

Shortly after the lease was signed James Ray, Chief Counsel and Acting Deputy Administrator of the Federal Highway Administration (FHWA), wrote to state Transportation Secretary Allen Biehler and Pennsylvania Turnpike Commission Chief Executive Officer Joe Brimmeier stating that the approval process for the Interstate System Reconstruction and Rehabilitation Pilot Program has begun and isn’t a guarantee.  What happens if FHWA doesn’t approve I-80 for this pilot program?  What is the Commonwealth on the hook for?

Conclusion

We recognize that Pennsylvania is facing very difficult challenges with maintaining highways and other surface transportation facilities, when there is a need to add capacity to the overall system. We need to be looking for solid solutions that are beneficial in the short-term and especially in the long-term. Unfortunately, there are far too many public officials that are either unwilling to tighten their belts and put transportation funding toward transportation or simply are just looking for a quick fix to funding problems while they are in office, regardless of the impact in the future. 

Something must be done to stop tolls from being imposed on I-80.  Fortunately, there are efforts underway to do just that.  Efforts that may be unpopular with the Governor and the Turnpike Commission, but ones that are certainly being well received by the citizens of Pennsylvania. I’d like to thank the efforts of Congressman John Peterson, who introduced an amendment to the U.S. House of Representatives’ FY2008 Transportation Appropriations bill and Representative Hutchison for his leadership by introducing House Bill 1878 to repeal Act 44.

Thank you for providing me with this opportunity to testify on behalf of the members of OOIDA. 
I would be pleased to answer any questions that you may have.