Transportation Funding
May 26, 2010

Hi. I’m Gene Barr, Vice President of the Pennsylvania Chamber. Welcome to this month’s Pennsylvania Chamber Minute.

On May 4, Governor Ed Rendell convened a special legislative session to determine how the Commonwealth will pay for its aging transportation infrastructure.

Act 44 of 2008 provided funding sources to pay for highway and bridge maintenance. But the provision to toll Interstate 80 was recently rejected by the federal government, leaving lawmakers with a $476 million hole to fill.

A modern, safe and efficient transportation system is necessary for the flow of commerce and the mobility of residents and visitors. Yet the state’s ability to offer such a system is in jeopardy. Pennsylvania has some 7,000 miles of highways considered in poor condition and 5,600 deficient bridges. Finding the revenue to fix our deteriorated roads and bridges will be no small task considering the tremendous fiscal challenges already facing the Commonwealth. But it is vital to do so.

The Pennsylvania Chamber welcomes the opportunity to work with elected officials to find effective, reasonable solutions. As a member of the Keystone Transportation Funding Coalition, we’ve already sat down with the governor to begin this dialogue. And the PA Chamber’s member-driven transportation policy is on board with many proposed funding recommendations under consideration by lawmakers.

For starters, Chamber members support a reasonable increase in the Motor Fuels tax. While we understand that increases in the cost of fuel are not popular, this tax functions as a true user fee and is constitutionally required to be used for transportation projects. And because of increased federal fuel efficiency requirements, revenues from motor fuels taxes have declined.

Other concepts favored by Chamber members include public-private partnerships, the tolling of newly created highways, and strategic borrowing.

The administration has said it is willing to discuss any and all reasonable ideas to fill the funding gap. Of concern to the business community is the governor’s repeated support for a proposed Oil Company Gross Profits Tax – his second attempt to enact such a tax.

The Chamber opposes singling out individual industries for taxation, which in this case would not just include so-called “big oil,” but hundreds of small businesses, including those that deliver home heating oil.

But make no mistake, the Pennsylvania Chamber and its members will work with elected officials to find common ground among the many ideas that have been put forth in order to ensure a reliable and efficient transportation system in the Commonwealth.

Thank you for your support. And thank you for spending a minute of your time with the Pennsylvania Chamber…The Statewide Voice of Business.