By: Eric Boehm | PA Independent
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A new executive commission tasked with closing the state’s transportation funding deficit will not consider raising the gasoline tax or leasing the Pennsylvania Turnpike to generate revenue.
Barry Schoch, Secretary of the state Department of Transportation and the chairman of the commission, said all other options – including potentially revisiting the failed plan to place tolls on Interstate 80 – are on the table as the commission begins its work.
Gov. Tom Corbett created the commission on the state’s estimated $3.5 billion in annual unmet transportation funding needs. It will meet at least three more times before the end of June and will submit a final report to the governor in August.
The commission consists of 36 individuals, representing state and local governments, the state’s business community, transportation special interests and representatives from some of the state’s 30 mass transit operations. Click here for a full list of all members.
Corbett briefly stopped by the meeting to address the members on the importance of their task.
"What we've asked you to do is to give us solutions for the future," Corbett said. "You have my encouragement and I look forward to the report."
Monday, Schoch admitted the commission will not be able to fill the funding hole entirely.
“It took us 40 years to get here, we’re not going to try to get out of it in the first five years,” said Schoch. “We’re going to take a responsible bite out of it.”
He said the commission will try to identify about $2.5 billion in new, recurring revenues specifically for transportation.
Members of the commission were told not to expect federal funding to solve the problem, because expected changes in federal transportation funding could result in a decrease of up to 40 percent in state allocations, according to Mark Sullivan, a senior advisor with the Federal Highway Administration.
The state Transportation Advisory Commission identified the $3.5 billion shortfall in a report last year. According to the TAC’s estimates, the annual deficit will grow to $7 billion by 2020 and $10 billion by 2030 as costs of maintenance increase and new capacity is needed.
The $3.5 billion deficit includes a $484 million in unmet public transportation operating expenses.
Funding options including tolling and taking on higher levels of bonded debt to pay for infrastructure upkeep will be considered, said Schoch.
Traditionally, the primary funding mechanism for transportation in Pennsylvania has been the gasoline tax, which stands at 32.3 cents per gallon and is the 10th highest in the nation. However, declining consumption of gasoline – the result of higher prices at the pump and more fuel efficient vehicles on the road – has reduced revenues.
Schoch said the gasoline tax model, which is essentially a user fee for drivers, might not be the right approach anymore.
“We all depend on the system, even if you don’t drive,” said Schoch. “There’s things delivered to your community, there are groceries delivered to the stores and materials delivered.”
Schoch said both he and Corbett opposed the idea of leasing the Turnpike to a private firm.
