Research documents who pays and who benefits from toll system revenue

From ATRI The American Transportation Research Institute (ATRI) today released new research that documents the collection and distribution of $14.7 billion in U.S. toll revenue, representing 82 percent of U.S. toll collections. The research sheds light on many questions about tolling, including how much toll revenue is generated versus reinvested in toll facilities and contrasts…

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From ATRI

The American Transportation Research Institute (ATRI) today released new research that documents the collection and distribution of $14.7 billion in U.S. toll revenue, representing 82 percent of U.S. toll collections. The research sheds light on many questions about tolling, including how much toll revenue is generated versus reinvested in toll facilities and contrasts truck-generated toll revenue versus truck utilization of toll roads.

This study was identified as the top research priority for the industry by ATRI’s Research Advisory Committee in 2019.

Some key findings include:

  • Toll Facility Costs are High.  Of the $14.7 billion in total toll revenue, $4.764 billion or 32.4 percent of total revenue was used to cover facility costs. Of this, $2.32 billion or 15.8 percent of total revenue was spent on toll collection costs.
  • Nearly 50 Percent of Toll Revenue Collected is Diverted to Uses Other than the Operation of Toll Roads and Bridges. Slightly more than 48 percent (or $7.1 billion) was positive cash flow (i.e. “profit”) beyond the cost of operating the toll systems and paying interest.  Of this, trucking paid $2.03 billion or 28.5 percent.  A reasonable question is why these facilities are operating and justifying the current toll structure if the Net Cash Flows exceed a zero or breakeven level.  Given that most agencies are government or quasi-government entities, the coverage of costs should be sufficient in order to justify a user-pays model.
  • Toll Payments are Subsidizing Transit and Non-Toll Facility Related Transportation Costs.  A total of $3.013 billion (20.5% of $14.7 billion) was transferred out by nine of the 21 toll systems to other government agencies that included mass transit and non-toll facility-related transportation.

You can download the full report and Executive Summary of Key Findings – A Financial Analysis of Toll System Revenue: Who Pays & Who Benefits – by clicking here.

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