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Refining turnpike toll collection, increases on soon-to-be commissioner’s radar

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(The Center Square) — The Pennsylvania Turnpike Commission will soon see a new commissioner focused on fare collection and reducing how much tolls increase annually.

Keith Leaphart, a physician, entrepreneur, and philanthropist, received a unanimous and favorable recommendation from the Senate Transportation Committee on Tuesday for the Turnpike Commissioner position.

“The Turnpike Commission will do extremely well with him here,” Sen. Vincent Hughes, D-Philadelphia, said.

The praise was bipartisan.

“Your resume is incredible, impressive, and I think will bring a different dynamic to looking at this issues, so I look forward to that as well,” said Sen. Wayne Langerholc, R-Clearfield. “I will support your nomination.”

In his written testimony, Leaphart emphasized the quality of the turnpike’s toll collection system.

“Leakage has always been a challenge for the tolling industry — even in cash collections — just as it is in the retail sector. We do everything we can to minimize it,” he wrote. “Overall, the PA Turnpike Commission (PTC) captures 93-94% of revenues. Leakage is vastly a customer-behavior issue — not a system issue.”

Collection was at “expected levels,” he noted, and argued that focusing on the nominal dollar amount of uncollected tolls could be misleading.

“Leakage remains constant as a percentage of transactions. While the dollar amount has grown, the percent of unpaid transactions remains 6-7%,” Leaphart wrote. “The percentage is the number that is evaluated as an accurate indicator of progress. The dollar amounts are not a measure of progress because leakage moves as toll rates go up and traffic volumes rise each year.”

The problem remains customers who refuse to pay tolls and “intentionally cheat the system.”

The turnpike, thanks to Act 12 of 2022, can now suspend the registrations of Pennsylvania drivers who do not pay their tolls, and unpaid tolls go to debt-collection firms after 60 days. For “egregious violators,” Leaphart noted that the turnpike works with local district attorneys to file criminal charges.

Despite those efforts, tolls will continue to increase. The turnpike has more debt than the entire commonwealth, as The Center Square previously reported, and the commission is expected to consider a 5% toll increase at its next meeting on July 5, which would take effect on January 7, 2024.

“The proposed 5% toll-rate increase continues our planned multi-year reductions in annual rate increases with a goal of getting to a 3% annual toll increases in 2028,” Leaphart wrote. “Due to past Act 44 obligations and escalating debt service associated with Act 44 debt, the PTC will need to increase tolls every year through at least 2053 based on current projections.”

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