Toll revenue’s way off in Louisiana, thanks to Hurricane Ida

Damage caused by Hurricane Ida in August 2021 took a huge bite out of toll fee revenue in Louisiana. The bite was big enough that it wasn’t enough to cover the debt, according to a report from Louisiana Legislative Auditor Mike Waguespack.

Toll revenue decreased by 78% in fiscal year 2022 because of Hurricane Ida damage, which caused the suspension of all tolling operations, manual collections and invoicing from Aug. 28, 2021, to June 30, 2022, according to the auditor’s report.

While in 2021 the total amount of toll fees collected surpassed $4.4 million, in 2022 total toll fees amounted to less than $1 million – $966,682.

“In fiscal year 2022, the actual revenues of $4.4 million were 30% lower than the required debt service payment. The amount of toll revenue collected in fiscal year 2018 through fiscal year 2022 did not provide sufficient revenues to fully reimburse the state for debt payments made on its behalf,” according to the report.

The Louisiana Transportation Authority is servicing the debt on two bonds, one for $54.3 million and the other for $112.5 million.

Business interruption insurance proceeds collected by the Louisiana Transportation Authority, which manages the toll program, did not cover the shortfall. Insurance payments totaled $3.4 million for losses through June 30.

The Louisiana Transportation Authority also anticipates that collections will not fully reimburse the state in fiscal year 2023.

The authority ended fiscal year 2021 with an operating loss of $5 million and fiscal year 2022 with an operating loss of $5.1 million.

The Louisiana Transportation Authority was created in 2001 by the Louisiana Legislature to promote, plan, finance, develop, construct, control, regulate, operate and maintain any tollway in the state. The state operates a statewide toll system named GeauxPass. The toll road system includes the LA 1 (Louisiana Highway 1) bridge in Leeville. Toll collections from the LA 1 Bridge began in 2010. LL

More Louisiana news is available.