The Transportation Commission Makes Its Recommendations

On July 19, the Governor’s Transportation Funding Advisory Commission unanimously recommended $2.7 billion in new transportation taxes and fees, to be phased in over five years. Although the final report has not been issued (it is expected on Aug. 1), a great deal of information was reported by the media.

Without a lot of detail on these proposals, it is difficult to respond, but I can tell you that I do have concerns about doubling the county share for mass transit. This recommendation just passes the buck and requires county governments to do the heavy lifting. Quite frankly, it’s very similar to what was done in the Republican budget. What’s interesting is that many of these options are also ones that the governor has already dismissed.

As reported by the media, the commission report says that a motorist with one car, driving 12,000 miles a year in a car with average fuel efficiency, would pay $36 more annually, not counting higher driving infraction fines. By the fifth year, when the fees are fully implemented, the cost would be $132 a year for that same driver, again, not counting higher driving infraction fines.

Following is a list of the proposals, as reported in the press, including taxes and fees:

• Remove the cap from the Oil and Franchise tax to apply that levy to the full cost of the wholesale price of gasoline (Generates $272 million in the first year and $1.36 billion by year five)
• Raise the driver’s license and vehicle registration fees by the consumer price index from the year they were last raised to 2012, then, 3% a year annually; Vehicle registration would increase from $36 a year to $49 while the registration for tractor-trailers (80,000 pounds) would increase from $1,687 to more than $2,200 (Generates $412 million initially, $574 million by year five)
• Cap the $570 million the PA Department of Transportation annually pays for state police and move about half of that sum ($300 million) from the PennDOT budget to the general fund
• Restructure Act 44 to move $200 million from highways to mass transit; Increase the local mass transit match to 15% of new money local match to be funded by small games of chance and send 2% of all state sales taxes to transit. (Generates $44 million in year two, $172 million by year five)
• Modernization and cost-savings to fund roads, highways and bridges: $10 million in year one; $66 million by year five. Those would include higher fines and fees for various activities. Also nearly $6 million for renewing licenses and registration every two years
• The panel also recommended the Legislature enable tolling of all interstates in PA, stressing that without a change in federal law, none of those highways could be tolled; Without the change in state law, even with a change in federal law, tolling could not occur
• Extending validity of driver’s licenses from four years to eight years
• Consolidation of drivers license centers (Also, the commission suggests exploring a fine option instead of suspension for individuals caught driving without insurance)
• Under the commission’s proposed modernization strategy, some government services will be outsourced to the private sector, including currently free driver’s license testing; Under the commission’s proposal, an individual would have the option of paying $15 to PennDOT to take a driving skills test or the individual could take the test sooner through a private testing service
• Changing all traffic lights in the state to LED lighting, which would improve visibility for drivers and reduce energy costs for local governments
• Installing red-light-running cameras as a tool for enforcement
• Using alternative fuels for PennDOT’s fleet should also be considered, including natural gas, electric and biodiesel
• Consolidating traffic management operations into a Statewide Traffic Management Center; This would include combining traffic management operations of the Pennsylvania Emergency Management Agency, the state police, the Pennsylvania Turnpike Commission, and PennDOT

The funding projections are that $481 million could be generated in year one, and $1.7 billion by year five for state highways and bridges; $80 million by year one, $289 million by year five for local highways and bridges; and, $200 million by year one, $404 million by year five for mass transit.

I am hopeful that, unlike the budget debate, that the process by which we consider this report and its recommendations is a bipartisan one that determines what the best options are through debate and discussion. No one argues that we have to find more money to maintain and improve our roads, bridges and public transportation systems; the question is going to be whether these proposed options are the best choices.

I can assure you that I, and my colleagues, will be reviewing this report in great detail, discussing it within our own caucus, and also taking the time to talk with local officials to gauge the effect some of these proposals will have on local priorities, particularly mass transit.