MDTA warns of fiscal strain from Key Bridge reconstruction; systemwide tolls eyed for 2028

Maryland Transportation Authority leaders told the House Appropriations Committee's Transportation and Environment Subcommittee that reconstruction of the Francis Scott Key Bridge accounts for more than half of MDTA's six-year capital program and is driving a step-up in borrowing and near-term cash needs that make a systemwide toll increase likely by fiscal 2028.

"We are looking at a 2028 toll increase," Bruce Gartner, executive director of MDTA, said, citing the agency's projection that debt issuances will exceed $3 billion through 2031 and that key financial metrics are projected to decline in the out-years. Sam Quist, the legislature's budget analyst, told the panel the debt-service coverage ratio is projected to fall from a projected 2.2 in FY27 to below required thresholds in subsequent years.

The agency reported about $238 million in state funds spent on the Key Bridge reconstruction as of November 2025, and it expects hundreds of millions in federal reimbursements over the next months, but it emphasized that federal reimbursements are on a reimbursable basis and timing is controlled by federal processes. Gartner said MDTA has already advanced state funds and is pursuing federal reimbursements, insurance proceeds and litigation proceeds as part of its financing plan.

MDTA described a package of operational and policy efforts aimed at improving its near-term cash position before raising rates: a planned reciprocity agreement with Pennsylvania to collect out-of-state toll debt; an RFP to hire collection-agency services for out-of-state accounts; expansion of E-ZPass adoption and interoperability; and customer-focused measures such as installment payment plans and enhanced notices. "We've developed draft RFPs and intend to issue later this year," Gartner said of third-party collectors.

Committee members pressed MDTA on timing and on equity concerns. The chair asked when staff would propose a toll adjustment to the MDTA board; Gartner said staff would likely present a proposal in January 2027 with board action targeted in mid-to-late 2027, aiming for implementation in calendar 2028. Delegates raised concerns about burdening commuters in eastern districts and asked whether discounts or targeted relief for frequent local users could be included; Gartner said MDTA's trust agreement does not permit free passage but the agency can design discount or commuter programs to mitigate impacts.

DLS recommended continuing committee narrative and reporting on Key Bridge progress and on MDTA's planning for a toll increase; committee members asked for a JCR progress update next year documenting incremental results on out-of-state collection and other debt-recovery actions.

The subcommittee did not take formal action at the hearing; members asked MDTA to return with more detailed schedules and to provide the requested JCR documentation in the budget process.