Pennsylvania has an estimated--and staggering--$4.5 billion funding shortfall for our roads, bridges and public transportation systems.
The Commonwealth leads the nation in deteriorated bridges, with 4,400 of our 25,000 state-owned bridges rated structurally deficient. Nearly a quarter of our 44,000 miles of state-owned roads are rated poor. Our public transportation systems are badly in need of investments in infrastructure, equipment and deferred maintenance.
This transportation funding shortfall has serious consequences for public safety, our economy, our quality of life and our environment. Transportation policy choices significantly impact how much energy is used, how much pollution is created, our ability to reinvest in older communities and how much green space we can conserve.
Our funding shortfall is partially caused by the unintended consequences of good public policies. Pennsylvania's gasoline tax is a key component of how we fund transportation maintenance and improvements. The gasoline tax is assessed by the gallon, but over time average fuel economy in Pennsylvania and across the U.S. has dramatically improved and will continue to do so thanks to the new and outstanding fuel economy standards recently finalized by the Obama Administration. This is great news for our economy, clean air, reducing carbon emissions and energy independence.
The unintended consequence is substantially less revenue for transportation funding. According to the Governor's Transportation Funding Advisory Commission, the amount of state gasoline tax paid by the average motorist has dropped from $389.72 in 1970 to $178.99 in 2010. This amount will shrink considerably more in the years ahead thanks to the new fuel economy standards. It should also be noted that we have an alternative fuels tax in Pennsylvania, so electric vehicles, natural gas vehicles or vehicles powered by biodiesel and other technologies have their fuels converted to a gasoline gallon equivalent for purposes of the tax.
This week Senator John Rafferty, R-Montgomery, Majority Chair of the Senate Transportation Committee, announced that he will introduce a comprehensive transportation funding plan to ultimately increase Pennsylvania's annual investment in transportation by $2.5 billion. There is strong bi-partisan and bi-cameral support for a robust transportation funding plan. Rafferty was joined at the announcement by Senate Minority Transportation Chair John Wozniak, D-Cambria, House Majority Transportation Chair Dick Hess, R-Bedford, and House Minority Transportation Chair Michael McGeehan, D-Philadelphia.
The centerpiece of Rafferty's funding plan is the uncapping of the Oil Company Franchise Tax over three years, which will ultimately provide approximately $1.6 billion of the $2.5 billion in new funding. Increased fines and increased and shifted fee revenue will account for most of the rest of the new funding.
Governor Corbett recently announced that he will support uncapping the Oil Company Franchise Tax, so there is optimism that the transportation funding package can be part of the 2013-14 fiscal year budget that should be passed by the end of June.
PennFuture commends Senator Rafferty for his leadership and looks forward to working with the General Assembly on this legislation. Our priorities include making sure that the new revenue goes toward fixing our deteroriating roads and bridges, and not funding wasteful projects like the Mon-Fayette Toll Road; robust investments in public transportation; incorporating alternative fuels and alternative-fueled vehicles and infrastructure into the plan; and making sure that bicycle and pedestrian needs are addressed in the package.
