PHILADELPHIA -- Now that Gov. Ed Rendell has coasted to a second term, he's ready to take on his next big challenge -- securing adequate funds to fix Pennsylvania's many ailing roads and bridges and finding permanent funding for bus/subway/rail systems, especially those here and in Pittsburgh.

"Transportation will be my first major task" when his new term begins in January, he told reporters yesterday, only 12 hours after he trounced Republican challenger Lynn Swann.

"We have to be willing to make some difficult political decisions to resolve mass transit problems, as well as roads and bridges."

The first step in that direction will come next week, when a transportation funding commission, headed by Secretary of Transportation Allen Biehler, issues its report, 18 months in the making, on road, bridge and mass transit funding options.

In a preliminary report two months ago, the commission said that anywhere from $800 million to $2.2 billion is needed to bring those modes of transportation up to at least an acceptable level. Mr. Rendell said he especially wants to find a reliable, permanent source of funding for the Port Authority of Allegheny County, the Southeastern Pennsylvania Transportation Authority around Philadelphia, and buses and smaller transit agencies around the state.

It is not going to be easy, he added. Options for raising the necessary funding include such painful things as a higher sales tax, a higher personal income tax or a higher realty transfer tax, or finding public-private partnerships where private companies would operate some roads or bridges.

Mr. Rendell said he has two other priorities for 2007. When he makes his new state budget message in February, he will call for reforming state government. This means seeking a smaller Legislature, legislative term limits, limiting campaign contributions and creating a citizens commission to redraw legislative district lines after the 2010 census.

He hasn't been specific, but has said that about 10 years in office seems sufficient for a legislator, and perhaps 40 or 50 of the 203 seats in the House, along with 10 seats in the 50-member Senate, could be eliminated.

Mr. Rendell also said he wants to do more to provide health insurance for nearly 1 million lower-income and uninsured adults.

He may discuss with the new General Assembly leaders the idea of increasing the 6 percent state sales tax by 0.5 percent or 1 percent as a way to raise additional funds to lower property taxes.