The Pennsylvania Turnpike Commission announced Tuesday the unanimous approval of the permanent implementation of the cashless, All-Electronic Tolling (AET) system instituted March 16 to mitigate the spread of the COVID-19 virus.
The decision, approved by the PTC Commissioners at a bimonthly public meeting, will result in the layoff of approximately 500 employees, primarily toll collectors and fare-collection personnel.
“I deeply regret that we have reached this point, but the world has been irrevocably changed by the global pandemic,” PTC CEO Mark P. Compton said. “This pandemic had a much greater impact than anyone could have foreseen. The PA Turnpike has not been spared from COVID-19.”
Compton said the PTC is committed to helping impacted employees through the transition phase. Employees with layoff status will be able to retain certain health benefits for up to 24 months.
“We are also reviewing internal positions that could offer an opportunity for impacted workers, such as opening vacant equipment-operator jobs now, rather than in the fall, to place as many qualified employees as possible,” Compton said. “Plus, we are working with the Commonwealth to identify job placements for impacted employees who hope to continue in state-related service.”
With no option of cash transactions, drivers will move through the lanes at posted speeds without stopping and will either be assessed via E-ZPass or a PA Turnpike TOLL BY PLATE invoice will be sent in the mail. Compton referred customers to visit the No Cash Zone webpage for more information.
“In mid-March, we made the decision to stop accepting cash in the lanes to protect employees and customers from COVID-19,” Compton said. “It was fully intended to be a temporary condition. However, with AET already our goal for the future, the decision to accelerate makes sense when faced with this extended pandemic.”
Compton noted that traffic has dropped by almost 50 percent since March compared to 2019. Toll revenues dropped by more than $100 million for the fiscal year ended May 31.
Efforts to previously mitigate the pandemic’s impacts included cutting capital spending by 25 percent, reducing operating expenses, instituting a hiring freeze, offering a voluntary-retirement program, and delaying its July transit-funding payment of $112.5 million to the Commonwealth. The Commission also restructured certain outstanding debt for fiscal year 2021 to lower overall debt-service costs.
Separately, the Commission secured a $200 million line of credit to fund operating expenses if necessary, depending on the length of the COVID-19 crisis. Federal-relief funding sought by the PTC, its industry trade association, and neighboring toll agencies have not yet been realized.
“From the start, we have taken a phased, deliberate approach to offset revenue loss that offers a degree of flexibility to adapt depending on the crisis’ duration,” Compton said. “To date, the Commission has taken several steps to cut costs. However, it has become clear these steps are not enough.”
Compton said the decision to permanently operate AET was also driven by safety concerns for employees and customers.
The PA Turnpike first explored AET options in a 2011 feasibility study. In 2013, conversion planning, design, and employee engagement began with a series of pilot programs implemented for testing from 2016-2019.