TOLL FINANCING: A TIME-TESTED APPROACH TO NEW CHALLENGES

As the explosive and persistent growth of transportation demand continues unabated and the discontent over traffic congestion is growing, it has become clear that funding for roads is inadequate to maintain the existing needs, let alone make improvements for future needs. This article examines toll financing that is gaining recognition as a politically acceptable and financially prudent means of funding both new construction and the reconstruction of transportation infrastructure. The concept of toll financing was borrowed from Great Britain with the establishment of the first recorded toll bridge in Newbury, Massachusetts in 1656, while the first turnpike was Virginia's Little River Turnpike, established in 1785. The article discusses the rationale for toll finance and recognizes that because tolls directly link costs with revenue, and user benefits with user fees, tolls are the most precise user-fee mechanism to fund transportation facilities. Additionally, because toll financing provides dedicated revenue to ensure adequate operation and maintenance, toll roads, bridges and tunnels are among the safest, best built and best maintained transportation facilities in the world.