00:01 - Good morning.

00:02 - Or good afternoon and thank you for joining me

00:05 - to discuss the results of our performance audit

00:07 - of the Pennsylvania turnpike commission

00:09 - with me today or Gordon Dillinger

00:11 - deputy auditor general for audits.

00:13 - It's Scott king director of performance audits

00:16 - and David Jonas

00:18 - audit supervisor.

00:19 - Or like to think our audit team for completing

00:22 - a comprehensive and quality auto report.

00:25 - I would also like to think

00:26 - the turnpike commission for being transparent

00:29 - in working with us to ensure we had access to the information we needed

00:33 - to cook delete this Autumn.

00:35 - The arctic covered the time period

00:37 - of June one

00:38 - two thousand and twenty two

00:40 - through may thirty first

00:42 - two thousand twenty five

00:44 - and had two objectives.

00:46 - Determined if the turnpike commission's revenue collections

00:49 - or meeting

00:50 - projected toll revenue expectations

00:53 - in order to meet its payment obligations

00:55 - and planned capital

00:57 - improvement projects

00:58 - and.

00:59 - Evaluate this process for collecting tolls including

01:03 - how much is actually being collected

01:06 - while determining if the commission is using all the enforcement tools available

01:11 - to collect the money

01:12 - it is owed.

01:14 - This is our second performance audit of the

01:15 - turnpike commission since I've been in office

01:18 - and i'm pleased to say

01:20 - there has been improvement

01:21 - since our first audit

01:22 - in two thousand twenty two.

01:25 - Since two thousand and twenty two

01:26 - the commission has been able to make progress

01:29 - with it's debt payments

01:30 - and has improved

01:32 - it's credit rating.

01:35 - It has worked with the legislature

01:36 - to make it harder for drivers to dodge

01:39 - their toll bills

01:40 - including

01:41 - implementing our recommendation

01:43 - to suspend vehicle registrations for people

01:46 - who owe more than

01:47 - two hundred and fifty dollars

01:49 - and

01:50 - it has worked

01:51 - to look at new ways to implement how it charges driver

01:54 - to travel on a different bike.

01:57 - I commend the turnpike commission

01:59 - for addressing those issues.

02:01 - In all

02:02 - our auditors have five findings

02:05 - and made nineteen recommendations

02:06 - for the commission and the general assembly.

02:10 - In our first finding.

02:12 - We determined

02:13 - that the turnpike commission continues to face

02:16 - significant challenges

02:17 - to raise toll revenue

02:19 - in order to make it to legally required

02:21 - annual payment

02:22 - to penndot

02:24 - under act forty four

02:25 - of two thousand and seven

02:27 - and at eighty nine

02:29 - of two thousand and thirteen.

02:31 - At forty four

02:33 - an act eighty nine

02:34 - require the turnpike commission to pay penndot

02:37 - over now nine point six billion dollars.

02:41 - From

02:42 - two thousand and eight

02:43 - through

02:44 - two thousand

02:45 - fifty seven.

02:47 - These payments were to provide funding for roads

02:50 - Bridges and

02:51 - transit projects

02:52 - throughout the commonwealth.

02:54 - In two thousand and eight

02:56 - the turnpike commission paid pundit

02:58 - seven hundred and fifty million dollars.

03:01 - In two thousand and nine.

03:03 - It paid penndot

03:04 - eight hundred and fifty million dollar years.

03:08 - In two thousand and ten

03:10 - it paid penndot

03:11 - nine hundred million dollars

03:13 - and every year

03:15 - from two thousand and eleven to two thousand twenty two.

03:19 - It paid ten dollars

03:20 - four hundred and fifty million dollars.

03:23 - As of may thirty first

03:25 - two thousand and twenty five

03:27 - the turnpike commission

03:28 - has paid the department of transportation

03:30 - over eight

03:32 - billion

03:32 - dollars.

03:34 - In our second finding.

03:36 - We determined

03:37 - the toll increases driven by acts forty four

03:40 - and eighty nine

03:41 - continue to burden travelers.

03:44 - While the commission's payment

03:46 - due to

03:47 - due to penndot have dk or ease

03:49 - the financial burden is still passed on to travellers

03:53 - in the form of tolls that must be increased

03:55 - every year

03:56 - through

03:57 - two thousand

03:58 - fifty five.

04:00 - However the commission's overall credit rating

04:03 - continues to improve

04:04 - sister payment obligations to penndot

04:07 - under acts forty four

04:09 - and eighty nine

04:10 - have been reduced

04:12 - and two thousand and twenty three

04:14 - to fifty billion dollars per year

04:18 - to reduction in payment

04:19 - has allowed the commission to invest capital funds

04:23 - to make improvements

04:24 - beyond routine maintenance.

04:26 - In our third finding.

04:28 - We deter moment

04:29 - that open road tolling

04:31 - implemented

04:32 - in January two thousand and twenty five

04:35 - impacted both passenger

04:37 - and commercial vehicle tolerates

04:39 - resulting in a mixed of toll increases

04:41 - and

04:42 - decreases.

04:44 - The system created a new formula.

04:46 - That establishes toll rates based on the number of of

04:49 - vehicle axles

04:51 - and vehicle height.

04:53 - Which is determined when two passengers traffic

04:56 - passed through gantries

04:58 - which

04:58 - replace

04:59 - tollbooth.

05:01 - This new formula now aligns a turnpike with

05:04 - industry

05:05 - industry standards.

05:07 - On our fourth and fifth findings.

05:10 - Address the issue of

05:11 - unpaid tolls.

05:13 - We found that the turnpike commission's unpaid toll problem

05:17 - has grown.

05:18 - Because of an collected tolls

05:20 - and on billable tools

05:22 - for in-state and out-of-state travelers.

05:26 - From June

05:27 - two thousand and twenty four

05:29 - to may

05:30 - two thousand and twenty five.

05:31 - The turnpike commission

05:33 - is still owed

05:34 - two hundred

05:35 - and twenty nine

05:36 - million dollars

05:37 - in uncollected tolls

05:38 - and on billable tools

05:40 - for

05:41 - in-state

05:42 - and out-of-state travelers.

05:45 - About seventy five percent

05:46 - or

05:47 - approximately

05:48 - one hundred and seventy one million dollars of unpaid tolls

05:52 - come from travelers who travel the turnpike.

05:55 - Get a bill from the turnpike commission and never pay it.

05:59 - The rest of the unpaid tolls

06:01 - come from either travelers whose license plates or

06:03 - obstructed

06:04 - or unreadable by toll by plate scanners.

06:09 - Or

06:09 - from license plates that were scanned

06:12 - but the department of transportation doesn't have an address available

06:15 - for the vehicle so the turnpike commission

06:18 - cannot

06:19 - make ale a bill.

06:21 - Faced with this increase of uncollected tolls

06:24 - the turnpike commission must continue to seek new ways

06:27 - to collect the money

06:28 - it is owed.

06:30 - Auto team has laid out nineteen recommendations

06:33 - on ways to ensure

06:35 - the turnpike remains in

06:36 - an affordable way

06:38 - to travel through Pennsylvania.

06:41 - We recommend the commission.

06:43 - Closely monitor

06:44 - the performance of its to

06:45 - debt collection agencies to determine

06:48 - if using two agencies or yielding high collection rate

06:52 - and if not

06:53 - adjust accordingly.

06:55 - Continue to work with other states

06:57 - in particular those states whose travelers

06:59 - have the highest amounts of uncollected tolls

07:02 - in Pennsylvania

07:03 - to include.

07:04 - Potential reciprocity agreements with other states to collect

07:08 - those unpaid tolls.

07:10 - Make it easier

07:12 - to pay

07:13 - toll bills through tools like

07:14 - Venmo

07:15 - and cash app.

07:17 - Find ways

07:18 - to attach unpaid bills

07:20 - to an individual's credit report

07:22 - like any other creditor.

07:25 - To address a significant debt

07:27 - we recommend the turnpike commission continue to look at ways to cut costs

07:32 - and increase revenue.

07:33 - We also recommend the general assembly

07:36 - not to increase their annual

07:38 - see me not to increase the annual

07:40 - fifty million dollar payment depend on

07:42 - and consider legislation to reduce use

07:45 - or remove

07:46 - the annual payment.

07:48 - The turnpike commission

07:50 - has made tremendous improvements

07:51 - in innovation and technology since our audit

07:54 - of two thousand and twenty two.

07:57 - Has worked hard to reduce this debt

07:59 - and that work needs to be acknowledged

08:02 - but the fact remains.

08:04 - The turnpike still has a bigger debt obligation

08:07 - than the entire come off of Pennsylvania largely due

08:10 - to acts forty four

08:12 - and

08:13 - eighty nine.

08:16 - As a may thirty first.

08:18 - Two thousand twenty five

08:20 - the turnpike commissioned debt obligation

08:23 - was fourteen point four

08:25 - billion dollars.

08:26 - In comparison

08:28 - as of June thirtieth

08:29 - two thousand and twenty five

08:31 - the general debt obligation for all come up with activities

08:34 - for the entire commonwealth of Pennsylvania.

08:37 - Was eleven

08:38 - point six

08:39 - billion dollars.

08:40 - While it is no longer borrowing money

08:42 - to make his payments depend on.

08:45 - The turnpike commission still has to pay them

08:47 - an additional one point six billion dollars

08:51 - through two thousand fifty seven

08:53 - as a result.

08:54 - Of at

08:55 - forty four

08:56 - in eighty nine

08:57 - financial

08:58 - obligations.

09:00 - So as you can see.

09:02 - The turnpike commission

09:03 - didn't get into this situation alone.

09:05 - In the legislature and the governor

09:07 - needed to help improve

09:09 - his financial viability.

09:11 - While there have been steps taken in the right direction by the commission

09:15 - and the legislature

09:16 - more work needs to be done.

09:19 - It is up to us

09:20 - to recommend

09:22 - and implement real change to make sure the turnpike remains

09:25 - one of the best ways to travel

09:27 - across

09:28 - Pennsylvania

09:29 - no open left for questions.

09:32 - Sf.

09:34 - This is always.

09:36 - Just to

09:36 - clarify.

09:38 - Fifty million.

09:41 - Previous years is higher

09:43 - numbers.

09:45 - Is

09:45 - fifty million.

09:47 - The.

09:48 - Turnpike commission

09:49 - to use paint.

09:51 - Or is that the amount that are.

09:56 - As a result i believe of act eighty nine that is the result that is

10:00 - that is legally that pin

10:02 - that the turnpike is legally required

10:04 - to pay penndot.

10:09 - Either reduced or eliminated altogether.

10:14 - I

10:14 - think a lot of people

10:15 - interact with the term paper later they find out about

10:18 - it when they get their bill in the mail or they find out

10:20 - rates are going up.

10:23 - I kind of got this from your recommendations but.

10:25 - From your standpoint do you think it's acceptable

10:28 - for drivers to keep facing higher and higher tolls every year.

10:32 - Seemingly

10:33 - endlessly.

10:34 - When.

10:35 - There are other changes you think might

10:37 - help and that's why we've made a recommendation that we did

10:41 - to

10:41 - help

10:42 - decrease the turnpike

10:44 - in azure and carefree

10:45 - increase as you decrease the term bikes that

10:47 - hopefully the toll.

10:49 - That the traveler such as us

10:51 - will have to pay

10:52 - so we made a recommendation

10:54 - to.

10:56 - For the turnpike to continue to

10:58 - look at new ways but we also

11:00 - asked the legislature to get involved

11:01 - to reduce the fifty.

11:04 - That fifty billion dollar payment should be fifty million dollar payment per year.

11:08 - You mentioned

11:09 - how much money

11:10 - goes out from the turnpike commission

11:12 - to the state.

11:15 - Parks road funding.

11:17 - That that.

11:18 - That that goes into.

11:21 - Goes to the

11:22 - two penndot from the turnpike.

11:25 - Depended

11:26 - so

11:27 - penndot can use it for

11:28 - road

11:29 - Bridges and transit projects.

11:32 - That's.

11:34 - Why

11:34 - questions you're gonna

11:35 - take that money away or reduce that

11:37 - sounds like you'd

11:38 - like to

11:39 - start doing that.

11:41 - Doesn't that great big fiscal problem

11:43 - state

11:44 - you can get Pennsylvania forty

11:46 - right now.

11:48 - That'll be a good question for the legislature.

11:50 - There are bigger questions so we've made our

11:52 - recommendations in our recommendation was to

11:55 - help reduce the burden.

11:57 - Number one on penndot

11:59 - and also number two on

12:01 - on the

12:01 - the traveler.

12:03 - Guess.

12:05 - To that

12:06 - that

12:06 - everybody's years ago has Pennsylvania.

12:09 - Do you happen to know how unusual it is to have transfers like that.

12:15 - Is that something that happens in every state or is that

12:18 - part of why untold years.

12:20 - That's a good question for us with other states.

12:23 - I don't know that'd be a good question for them

12:25 - but we are talking with other states

12:28 - where

12:29 - we have already have a reciprocity agreement with the state of Delaware

12:33 - we're also talking to believe

12:35 - Maryland

12:36 - new Jersey and i believe

12:37 - from

12:38 - the Ohio

12:39 - Ohio

12:39 - as well.

12:41 - Sorta

12:42 - times

12:42 - point i guess

12:43 - analyze it a little more

12:45 - when you've got two hundred and seventy five million dollars in unpaid tolls.

12:49 - Those of us in the river are all paying

12:51 - tolls.

12:52 - I dunno if you can quantify this but to whatever extent you can i mean

12:56 - how much are we all paying sort of copper for the people who aren't paying

13:01 - how much flirted articles could be even around figures that

13:04 - they were paying at all.

13:05 - It would be easier.

13:07 - It would be easy for all of us if the peak apple who get get a bill

13:10 - and as i stated in our order report.

13:13 - People who get their bill

13:15 - and don't pay it then comes to

13:17 - one hundred and seventy one million dollars.

13:20 - That's that's a lot of money so if everybody would do their part

13:23 - the burden for us who do pay our bills.

13:26 - Would be little

13:28 - little better.

13:30 - It's about

13:30 - tech.

13:32 - How reliable.

13:35 - Cause like i act like i remember i got like something in the mail

13:38 - like you and like two dollars for

13:40 - some

13:41 - time

13:41 - i forget it was awhile ago but the point is it's like.

13:45 - My current shit.

13:47 - Take

13:47 - out automatically.

13:49 - My questions is there are concerns that some of this.

13:54 - Forget the finger thing it's too much

13:56 - something

13:56 - two hundred and twenty

13:57 - million

13:58 - twenty nine.

13:59 - Is our concern solve that.

14:01 - Whether it's changing chakra stuff that's already there.

14:05 - Missing tolls that.

14:07 - Go out to get filled and then people start paying because they don't know

14:10 - well

14:11 - and again one of the things that we that we talked about and auto report

14:14 - is that there sometimes the.

14:17 - Penndot

14:18 - may not have information on

14:20 - a driver

14:21 - or an attack

14:22 - and if they don't have information on a particular vehicle that travels the turnpike

14:26 - then became mobile.

14:28 - So that that is

14:30 - is is a concern.

14:37 - Beckett.

14:38 - Her

14:39 - hundred seventy one million one hundred and sixty eight million totaling.

14:42 - It's two dollars just to.

14:47 - Hang out

14:48 - or thank you both

14:49 - thank.