OTA blames inflation on $3.2 billion Access Oklahoma overrun

OKLAHOMA CITY (KFOR) — The Oklahoma Turnpike Authority is blaming inflation after announcing this week its ongoing 15-year Access Oklahoma Project will cost $8.2 billion rather than the $5 billion initially projected.

The project was announced in 2022, aimed at improving the state’s turnpike network. The agency’s goal during the process has been to make those updates while maintaining low toll rates.

"This new estimate factors in 60 percent inflation in material and labor costs since the program's announcement in December 2021 and anticipates future inflation,” said OTA Executive Director, Joe Echelle.

Echelle said every single line item in the plan has increased in cost that is also being fueled by workforce shortages. News 4 sent over some questions to Echelle in response to the announcement:

Q: Does OTA have plans to reduce the number of projects in the ACCESS Oklahoma program or will things proceed as normal?

A: No, there will not be a reduction in projects at this time. In fact, three projects are being added to the 15-year long-range plan. OTA has no intention of removing projects as they are all necessary and needed.

Q: Are there any concerns regarding the viability of a 15-year plan when there are fluctuations and unknowns regarding future costs?

A: This is the reason OTA has a long-range plan, which allows us to better forecast future inflation to the best of our ability and plan for contingencies. OTA started estimating the future long-range program in 2021 and could never have predicted the 60 percent inflation in the highway construction industry since that time. A key factor to understanding the difference between the initial $5 billion estimate and today's $8.2 billion estimate is that the initial amount was based on a per-mile basis of 2021 actual costs and was a net-present value before any engineering design work had started. The $8.2 billion is a total program cost estimate through 2037 that reflects completed and ongoing design work information, factoring in inflation and contingencies. While it's impossible to plan for everything, the Authority believes this to be as realistic a cost estimate as possible. 

Q: How significant, and how quickly, could Pike Pass owners see a possible increase as new costs are calculated?

A: OTA is currently reworking its estimates for a toll increase for its Board to consider. The Authority must look at new toll numbers for new revenue projections before it enters the bond market.

Q: Can non-Pike Pass owners also another potential increase in the near future?

A: Yes, because we expect to update tolls for both payment systems at the same time.

Q: Will costs for the planned projects be impacted by the City of Norman not approving a resolution that would have moved forward with improvements there?

A: OTA will save between $150 million and $200 million by not building the frontage roads and additional interchanges along the East-West Connector in Norman. However, we've added three projects -a pavement rehabilitation project on the Muskogee Turnpike, the Arkansas River bridge on the Muskogee Turnpike and a pavement rehabilitation project on the south end of the I-44/H.E. Bailey Turnpike.

News 4’s John Hayes sat down with Oklahoma Senator Mary Boren (D-Norman) who criticized the new cost, and the impact it’ll have on everyday Oklahomans.

“You're going to see that their cost of commuting is going to go up, and that's just not fair,” said Boren.

Boren said she’s worried leadership within the OTA doesn’t have a handle on big asks, and are passing on costs to drivers without considering the impact on their finances.

“This is baked into their system and the system is rigged against drivers in Oklahoma who will be ending up paying the cost,” said Boren. “It's not paid by the contractors, they always get what they need.”

Echelle provided an additional statement below in response to toll concerns:

The Oklahoma Turnpike Authority has one of the lowest toll rates in the nation. As an example, the original toll amount on the Turner Turnpike in 1955 was $1.40. Today, a trip between Oklahoma City and Tulsa on the I-44/Turner Turnpike costs $4.50. If that amount had been adjusted for inflation through the years, the toll for that trip would be $16.22. OTA has purposely done what it can over the decades to keep transportation costs low for motorists while providing a safe and efficient system and paying off bond obligations. Even after a toll increase, we still will have one of the lowest toll rates and one of the best transportation values in the nation.

Joe Echelle, OTA Executive Director