Bottom Of The Barrel

Fast Lane transponders are now free, kind of

The Fast Lane was fully implemented in Massachusetts in 1999 and currently has 720,000 active customers. Those customers each paid $25.95 for the ability to pay their tools electronically. Over the past decade that amounts to some serious cash for the Massachusetts Turnpike Authority - at least $18 million dollars and probably much more if you consider customers who have needed to purchase replacements or those who came left the system in the past 10 years.

Faced with mounting pressure to reduce spending, increase revenues and the real possibility that the MTA could be merged with other departments [MBTA and the state Highway Department], the Authority has announced it will no longer charge the 26 bucks for their transponders but instead give them away for free.

"We are taking reform and customer service for Turnpike users to a new level," Transportation Secretary James Aloisi Jr. said in a statement. "This move sends a clear message that the Patrick Administration is serious about efficiency in delivering transportation services and in this case serious about moving away from the days of the manned toll booth."

What was not included in his statement was the little service fee that is going to be imposed on all customers for having the transponder. 50 cents a month will be charged per user regardless if you actually use the Fast Lane system or not. “We're not doing this to make money," said authority spokesman Mac Daniel. "We’re just hoping to simply break even."

Break even huh? Well let's consider the facts:

Total toll transactions in 2008: $190.0 Million
Total toll transactions in 2007: $197.6 Million
One year decline: $6.7 million or 3.4 percent

With the decline in overall toll revenue, the Authority is looking for ways to make up the difference. They are currently contemplating an increase bridge, tunnel and highway tolls in an effort to pay off Big Dig debt however now we are supposed to accept that free transponders are in the public's best interest not the MTA's.

Having to make up a deficit of nearly $7 million [and not to mention pay off Big Dig debts] in 2009, their new service fee will generate $4.3 million from their current subscribers. Unfortunately for those who have already bought the $26 transponder, you will pay for it again in just over 4 years. So I guess instead of the old rent-to-own methodology this is the new millennium's own-to-rent system and we get to pay for it over and over and over again.

Labels: Massachusetts

posted by TheWino @ 10:44 AM