TOLL ROAD FINANCING: A NEW LOOK AT AN OLD SOURCE OF FUNDS FOR HIGHWAY CONSTRUCTION. SESSION 12

There has been considerable interest of late in toll roads as a source of funds for highway construction. This interest is caused principally by the shortage of other available funds for highways. Even with the new five-cent fuel tax, insufficient monies are available for the critically needed rehabilitation of the existing highway system, let alone for new construction. The use of financiing with tolls, therefore, is again being investigated in some states where new roadways are considered essential for the regional economy. Tolls certainly can develop a revenue source, but not to the degree they used. In recent studies in Pennsylvania, Wisconsin, and Florida, there has been the opportunity to identify the changes that have occurred in toll road financing over the last two or three decades since the heyday of new toll roads. These changes are substantial and will impact any new toll financings that may take place. Toll roads can no longer rely solely on tolls as a basis for financing as so many of them did in the 1950's. This is not only because the corridors with the greatest potential have already been developed but also because the arithmetic of toll road financing is by no means what it used to be. (Author)