The bipartisan Transportation Funding and Reform Commission issued a final report this week with recommendations that would increase fees and taxes by over $1.6 billion to pay for critical improvements to Pennsylvania’s highways and bridges and help fund public transit.

Transportation Secretary Allen D. Biehler, P.E., who chaired the commission, said, “Not only is the commission proposing a solution to ensure Pennsylvanians have a better transportation system, but it also is recommending management and financial practices for the Department of Transportation and transit agencies to make sure all investments are made wisely and efficiently and that service is improved. We want to make sure that those paying the bills get the best value for their investment for many years to come.

The commission recommended $900 million in additional funding for highway and bridges and $760 million in targeted public transit funding.

The fee and tax increases recommended include: 12.5 cents per gallon from the state wholesale fuel tax, increases in the driver and vehicle registration fees to raise $150 million, increasing the Realty Transfer Tax by .89 percent, and enabling counties and municipalities to raise funds for mass transit by imposing a .25 percent local sales tax, a .2 percent earned income tax or .5 percent Realty Transfer Tax.

If the recommendations are adopted, the Commission said the average driver would pay $7 more per month.

The new funds for public transit would mean a change in realty transfer taxes that would add about $5 a month to a 30-year, $150,000 mortgage.

The nine-member bipartisan commission said its 16-month long assessment confirmed “that Pennsylvania’s public transportation and highway and bridge systems are in crisis, both in terms of inadequate funding for operations, capital improvements and maintenance as well as deteriorating physical conditions.”

The commission also recommended that PennDOT implement highway and bridge reforms and efficiencies totaling $120 million. These include:

· Taking the right maintenance steps at optimum intervals to extend the life of highways and bridges;

· Delivering projects that fit within the context of the community and provide cost effective improvements that address specific transportation problems within fiscal constraints;

· Delivering projects faster by improving decision making in the early planning stages and sharing information among the agencies that review environmental and cultural resource issues;

· Taking advantage of innovative project delivery and financing options, such as design-build and public-private partnerships; and

· Linking land use and transportation. This involves integrating land use decisions and smart transportation concepts. Major capacity expansion projects would be contingent on communities having land use plans and controls to ensure the proposed project will encourage sustainable, smart growth.

The commission also urged PennDOT to develop an incentive-based funding program to encourage communities to work with planning and other partners to link land use and transportation investments.

“We believe our recommendations will produce solid business practices that will stabilize and grow transportation services,” Secretary Biehler said. “We believe such changes are in the best interest of everyone who relies on transportation for work, health and play. We can either make prudent additional investments now, or be forced to pay more tomorrow to fix these pressing transportation problems.”

In reaction to the report, Gov. Rendell said, “I want to thank all of the members of the Transportation Funding and Reform Commission and Secretary of Transportation Al Biehler, who chaired the group, for the work they have done in the last 16 months in carefully studying Pennsylvania’s transportation system and its needs.

“The members of the commissioners clearly recognized the gravity and depth of the problem the commonwealth faces.

“For a long time, Harrisburg has not addressed in any far-reaching way the state’s transportation and mass transit needs. This report provides that comprehensive look and I hope that everyone will take the findings seriously. We need to work together over the coming months to use the findings of this report to develop, enact and implement a comprehensive solution to our transportation and transit issues.”

For a copy of the report and more information visit the Transportation Funding and Reform Commission webpage.

11/17/2006