RI Truckers Blast Revenue Projections in Tolling Proposal

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RI Truckers Blast Revenue Projections in Tolling Proposal

The Rhode Island Trucking Association is blasting the Raimondo Administration for its timing of pushing through its truck tolling plan, after letters surfaced between the Federal Highway Administration (FHWA) and the Rhode Island Department of Transportation showing that the DOT asked to be able to toll the underside of bridges -- and was denied by the Feds. 

Bill Fisher, spokesperson for the RITA, said Wednesday that he is "seriously concerned" with the toll plan timing, and questioned the state's revenue projections based on the request. 

“So now we know the state asked permission to toll on the undersides of bridges, and the Feds said no,” said Fisher. “Why would [the Administration] look to skirt federal law if they weren't concerned about revenue projections?"

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Bond Obligations in Focus

RITA issued the following statement after the letters had been made public on Wednesday.

"The fact that the state is just now receiving clarity on how toll revenue can be expended reinforces our belief that the original toll plan was moving far too fast and had not been properly vetted. We also find it troubling, as should lawmakers that DOT is seeking to go beyond the scope of the federal exemption to toll trucks going under bridges.  It begs the question if the original plan will generate enough revenue to pay back the bonds," wrote Fisher on behalf of RITA. 

RITA went on to blame the DOT -- rather than the truckers - for the current situation. 
 

"It is clear from the headlines during the past several months that prior DOT management is largely responsible for the condition of our roads and bridges, not the trucking industry. Decades of poor planning, neglect and failure to adhere to environmental regulations will cost the taxpayers of Rhode Island $112 million. We commend Governor Raimondo for her commitment to begin reforming the DOT, but it is also a clear-cut argument against the notion that trucks produce 90% of the damage to our highways and bridges. All of these issues need to be properly vetted in the upcoming legislative session," said Fisher.


The Administration pointed to the correspondence as supporting its plan, following the release earlier in October by the Governor’s office of the economic impact study conducted by REMI.
“As we’ve said all along, the authority to assess user fees already exists in federal law,” said Marie Aberger in the Governor’s office, referencing the letter from the FHWA to Director Alviti “clearly reiterating this.” READ THE LETTER HERE
 
“[The] second letter from FHWA to Director Alviti…makes it clear how the revenue from the toll on a bridge can be used: if a bridge that's been tolled has been repaired or reconstructed, and if the state certifies that it has the resources to keep it maintained, funds generated from a gantry located on that bridge can be used to repair another bridge,” said Aberger. “[FHWA]…expressed their continued support for RIDOT identifying alternative revenue sources, including tolls (as we are currently over- reliant on federal funds).” READ THE LETTER HERE

Fisher countered however that the “revenue projections” are not there. 

“We’d be on the hook for these bonds,” said Fisher. "We're saying charge us more in fees, focus on the diesel tax. We're worried about what no one has talked about, and that's evasion.  It's a big deal because you don't need to go through Rhode Island to drive from New York to Boston. We still have to make the bond payments.  These guys have computer programs that incorporate the fees and tolls. The burden is being placed on the local guys." 

“We're just looking for more vetting of the situation,” continued Fisher. “Look, the economic impact study didn't address the cost to consumer goods -- no one said it wasn't going to create jobs.  That wasn't the concern.” 

READ THE ALVITI LETTER of October 13, 2015

READ THE ALVITI LETTER of September 29, 2015

Republican, Advocacy Groups Continue to Push Counter Proposals

On October 7, the Republican Policy Group released their road repair plan that they said would levy no new fees or tolls. 

“Unfortunately, without taking the time necessary for a thorough analysis, Speaker Mattiello dismissed the Republican’s responsible plan to fix Rhode Island’s bridges. While there is always a political edge in the General Assembly, the Office of Speaker must transcend partisan politics – and we all must put electioneering aside when we consider issues that profoundly affect our economic stability and public safety," said Representative Patricia Morgan in a statement. "We remain committed to open dialogue with all, regardless of political affiliation, in order to reach common ground and stop the damage that tolls and massive debt financing will wreak on our state's taxpayers, consumers, small businesses and trucking industry."


The Center for Freedom and Prosperity, which recently released its alternative P3 Policy Paper, in which it proposed a delivery model that would be a “private sector partner who wins an open bidding process would self-finance and deliver all specified construction upgrades and maintenance services in exchange for a guaranteed revenue flow from the state over a defined period of time.”
“No response or curiosity was expressed by the Speaker's office after it received an advanced copy of the P3 policy paper released last week by the RI Center for Freedom & Prosperity that could deliver the Governor's ambitious bridge and road upgrade project in a safer, timelier, and less costly manner, and with less debt and risk under a proven model that has been successfully deployed in many other states,” said Mike Stenhouse, CEO for the Center. 
 


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