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Highway/Transit Funding Proposal Stalls In House

The House had extended debate on a proposal to provide additional funding for transit and highway improvements, but failed to take final action on the proposal after a five hour debate, even with voting down a motion to table 103 to 98.

The amendment to House Bill 1590 (Markosek-D-Allegheny) would raise an estimated $910 million annually by 2010-- $400 million for highways and $500 million for mass transit.

The bill would reorganize the Pennsylvania Turnpike Commission to impose additional tolls and lease the exiting Turnpike to the Commonwealth beginning at $200 million a year and impose new tolls on I-80.

The bill would also provide funding for statewide programs through at least nine different sources, including increases in safety and emission inspection fees, a fee on waste tires, applying state Sales Tax to professional sports event tickets, vehicle title fees, earmarking a portion of the state Lottery Fund, a new fee on motor vehicle rentals and other sources.

Counties and municipalities would be authorized to impose new taxes to support a new, higher local match requirement for funding transit systems, including 0.5 percent Sales Tax, 0.5 percent earned income tax, 0.5 percent realty transfer tax, a tax on liquor and brewed beverages of up to 10 percent, surcharges on parking spaces and parking tickets, local tax on vehicle rentals and applying the Sales Tax to professional sports event tickets.

The amendment would also restructure the governing board of SEPTA.

Senate reaction to the House debate was cautious.

“We are encouraged that House Democrats, and possibly Gov. Rendell, are becoming serious about a taxpayer-friendly solution to transportation funding,” said President Pro Tempore Sen. Joe Scarnati (R-Jefferson). “With the unconstitutional Oil Company Gross Profits tax and leasing the Turnpike to a private entity receiving no support, we need to direct our attention to proposals that offer the greatest effectiveness at the least cost to Pennsylvania taxpayers.”

One serious concern noted by the senators is the current proportion of funding for roads and bridges in the plan. The Transportation Reform Commission has recommended a plan with 56 percent of funding dedicated to roads and bridges. This plan would only send 42 percent of the new funding to roads and bridges over the first three years.

“The devil is always in the details,” Sen. Scarnati said. “And there are a lot of details in this plan that need to be examined from top to bottom. Senate Republicans have repeatedly said during budget negotiations that we will not increase taxes this year or next. Now that the transportation dialogue is moving in this direction as well, I am hopeful that the Governor will turn his attention to the core budget and, for the first time in his administration, get one done on time.”

The House is set to resume its debate on highway/transit funding when it returns to session on June 25.


6/22/2007

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