Monday, March 19, 2012

We lose significant funding capabilities

Bridge and ferry expenses are classified in two categories: Operating expenses and capital improvements.  While capital improvements – building or repairing new or existing structures - can be financed by either tolls or one-time funds such as grants and bonds, operating expenses can only be funded through an ongoing revenue source like tolls. Grants and bonds are NEVER issued for operating expenses. 

Operational Funds
The majority of the Crescent City Connection’s operating budget comes from bridge tolls and Highway Trust Fund #2.

  • Bridge Tolls: $22M annually:  While much has been said that a significant amount of this revenue goes toward the collection of the tolls themselves, this just isn’t true.  In fact, this ongoing revenue stream – along with Highway Trust Fund #2 - finances a dedicated police force, three ferry routes, routine bridge maintenance, the bridge’s iconic lighting, street lights under the bridge, landscaping, grass-cutting, litter pickup, etc.  
  • Highway Trust Fund #2: $5.6 M +/- annually:  Vehicular licensing fees and gasoline taxes are collected statewide.  Only the six parishes surrounding Lake Pontchartrain – Orleans, Jefferson, St. John the Baptist, St. Charles, Tangipahoa and St. Tammany - get to keep these taxes in their own separate fund and do not have to share with the rest of the state.  These funds are split evenly between the Causeway and the CCC bridges.  If tolls are not renewed, the CCCD’s half will revert to the DOTD.   And even if tolls are reinstated at a later date, one-fifth of our funding will be lost forever.

Capital Funds
A city either goes forward into the future or decays. It is a living thing that cannot exist frozen in time.  Unless infrastructure is not only maintained but improved, the region suffers not only economically but in an overall reduction in quality of life to its residents. There are two traditional funding sources for capital  improvements.

  • Bonds: With a dedicated revenue source such as tolls and Highway Trust Fund #2 comes the ability to obtain a “loan” of up to $150 M in one-time funds that can be used for capital projects. Without any significant incoming revenue, the ability to bond is lost.   
  • Federal Funding:  With a revenue source such as tolls, the CCCD can quality for up to 80 percent in matching federal grants. In fact, U.S. Transportation officials told local public officials that if we as a region refuse to toll ourselves, our federal funding capacity would be lost.

The Bottom Line
Money begets money. Without a reliable revenue stream, we simply can’t qualify for loans or grants. By allowing the tolls to expire, we are not just turning down our only source for an operating budget, we are eliminating the ability to fund projects like a Peters Road off ramp, a more viable HOV lane, and a more robust ferry system.

2 comments:

  1. Tolls were originally implemented to pay for the bridge - well it's paid off now. There are several other bridges which cross the Mississippi which the state funds:

    Old Vicksburg Bridge, Vicksburg Bridge, Natchez-Vidalia Bridge, John James Audubon Bridge,
    Huey P. Long Bridge, Horace Wilkinson Bridge,
    Sunshine Bridge, Gramercy Bridge, Luling Bridge,
    Huey P. Long Bridge.

    Don't buy into the hype. Oh yeah, and due to laws passed in the 2012 legislation the state cannot use toll money to fund the ferries, so regardless of the election the toll funds CANNOT be used for the ferries.

    It's a big money making scheme for the state to pay for a select few overpaid government employees.

    The CCC Should be no different than the other bridges which cross the Mississippi, Period.

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  2. Also if time = money imagine all the hours of your life you lose waiting or fighting the traffic through that toll plaza.

    It's an unfair tax to the citizens of LA since were the ones 9/10 paying the toll as opposed to the out of towners.

    Get rid of it.

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