Bridge Toll Reductions

In an effort to improve the quality of life of commuters, New Jersey Governor James E. McGreevey and Pennsylvania Governor Edward Rendell today announced that they are making strong recommendations to the Delaware River Joint Toll Bridges Commission for toll reductions and toll equity on Delaware River bridges. The Governors made the announcement at the toll plaza at the Morrisville-Trenton Bridge.

The Governors will urge the Commission, which meets again on September 29, to move forward on a toll rollback that would reduce tolls by as much as $.50 for cars and per truck axle. As a result of a new toll equity proposal, the reduced toll would be $.75 for all cars on all seven toll bridges.

Currently, tolls for cars are $1.25 for District 3 bridges (Milford-Montague, Delaware Water Gap, Portland-Columbia) and $1.00 for District 1 (Morrisville-Trenton, New Hope-Lambertville) and District 2 (I-78 and Easton-Phillipsburg) bridges.

"Our plan to bring toll equity will do just that-allow every driver, regardless of location, to pay the same amount on Delaware River joint toll bridges,” said Governor McGreevey. “This plan will not only reduce the overall cost of the toll to $.75 for New Jersey commuters, but will also bring long overdue fairness to the system."

“Governor McGreevey and I are committed to making the bridges as affordable as possible, but we also are aware that there are much-needed capital improvements that need to take place,” Governor Rendell said. “Our recommendations would result in a fair, safe, secure and reliable system for the bridges.”

For trucks, tolls are presently $2.25 per axle, but were previously scheduled to increase to $3.25 in January 2004. If the Commission accepts the Governors' proposal, the new toll would decrease by $.50 to $2.75 per axle.

The DRJTBC implemented toll increases in December 2002 to pay for a 10-year, $526 million capital improvement project across the entire bridge system, and the creation of a Public Safety Department and a Terrorism Insurance Fund.

The Governors' plan announced today would eliminate the need for a separate public safety department through a cooperative agreement between the New Jersey State Police and the Pennsylvania State Police to expand their jurisdictions to the toll bridges. They also announced that in the event of a terrorist attack, the Governors will work in conjunction with the federal government to ensure that the bridges are rebuilt, rather than contributing toll revenues to an insurance fund.

"We are working closely with Colonel Miller of the Pennsylvania State Police concerning the security of the Commission's bridges and other properties, and developing a plan that is in the best interests of both states," said Colonel Joseph 'Rick' Fuentes, Superintendent of the New Jersey State Police.

“We believe that this plan would allow the Pennsylvania and New Jersey state police to join forces in a way that would provide superior law enforcement services,” Pennsylvania State Police Commissioner Jeffrey Miller. “Using the resources of both departments in an integrated fashion would result in a more effective and efficient police effort.”

Other joint recommendations announced by Governors McGreevey and Rendell include:

1. Insurance: The Self Insurance Fund is eliminated. New Jersey and Pennsylvania agree to step in and rebuild any bridge or other structure that is destroyed or damaged in a terrorist incident.

2. Capital Improvements: The $526.5 million dollar capital improvement fund would be maintained in its entirety.

3. Credit Rating: The DRJTBC shall maintain such reserve balance (currently estimated to be $80 million) as is necessary to maintain a satisfactory rating with nationally recognized rating agencies.

4. Bond Requirements: The DRJTBC shall maintain such revenue levels as are necessary for the Commission to meet its obligations to its bondholders. Currently, the DRJTBC is required to maintain revenue levels equaling 130% of its total operating expenses and debt service. Parenthetically, any excess revenue would be utilized as “pay as you go” capital to fund toll reductions.

The DRJTBC, established in 1934, is charged with maintaining and improving 20 bridges--seven toll bridges and 13 toll-supported bridges.

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Author: Press Release - State of New Jersey