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Top Republican in Senate offers his plan to fund transportation
Wednesday, May 28, 2008

HARRISBURG -- Democratic Gov. Ed Rendell's plan to lease the Pennsylvania Turnpike to a Spanish firm is facing more opposition, as another Democratic senator criticized it yesterday and the top Senate Republican proposed a transportation funding plan of his own.

Senate President Pro Tem Joe Scarnati of Jefferson County unveiled a plan that would reallocate $510 million a year from the state's Motor License Fund to pay for fixing roads, bridges and mass transit. That money now goes to fund Pennsylvania State Police operations.

Mr. Scarnati would earmark $510 million from revenue generated by the state personal income tax to pay for state police.

Mr. Scarnati, a rural legislator, is calling for another change that probably won't go over well in urbanized Allegheny and Philadelphia counties. He wants to increase, from the current 15 percent to 18 percent, the required local government match for mass transit costs.

Allegheny County Chief Executive Dan Onorato got the Legislature to authorize the controversial 10 percent drink tax last year to help pay for the county's share of mass transit costs, and raising the local share to 18 percent would require more county money.

Mr. Scarnati, sensitive to constituents in his home area, wants to make another major change: rescind state plans to toll Interstate 80. The tolls, which must be approved by the federal government, were contained in Act 44, enacted by the Legislature in July.

Mr. Scarnati voted for Act 44, but tolling I-80 raised protests from residents and businesses along the east-west I-80 corridor. Mr. Scarnati said that with his new transportation funding plan, tolls from I-80 won't be needed. He would keep the turnpike toll increase set to take effect in January, but isn't calling for quite as much of a boost as Act 44 would require.

Mr. Scarnati said the only reason he supported the I-80 tolls last year was that "Pennsylvania was faced with a transportation funding crisis." He said his new plan would "meet the demands of our motoring public without placing any area [of the state] at an economic disadvantage."

His plan would change the funding of the state police over a two-year period. For fiscal 2008-09, which starts July 1, he would reduce Motor License Fund spending for state police by $255 million. Then on July 1, 2009, he would double the reduction.

He would fund state police by dedicating a slice of the personal income tax, which annually generates about $8 billion for the state. That would still leave a hole in the state budget.

Mr. Scarnati would issue $255 million in bonds -- that means borrowing the money -- to cover the 2008-09 shift of Motor License funds to roads rather than state police. Another possibility is to reduce state spending by $255 million, but that would be difficult, given numerous demands from various groups for the state to spend more, not less.

Mr. Rendell got bad news yesterday from another member of his own party. Richard Kasunic, D-Dunbar, joined Sen. Sean Logan, D-Monroeville, Rep. Joseph Markosek, D-Monroeville, and other Democratic legislators in opposing Mr. Rendell's plan to lease the turnpike to Abertis Infraestructuras of Barcelona, Spain.

Mr. Kasunic said the plan "uses overly optimistic financial prognostication" to estimate how much money the state would get to improve ailing roads, bridges and mass transit.

Mr. Rendell wants to lease the turnpike to Abertis for 75 years, in exchange for a one-time, upfront payment of $12.8 billion. He would invest that and estimates getting up to $1.1 billion a year for transportation improvements.

But Mr. Kasunic and other Democrats don't think the state would get up to 12 percent interest on its investment, as the governor has projected. The idea of foreign operation of a major state roadway also is a problem.

"I never thought I would see the day when some foreign company would take over our turnpike," Mr. Kasunic said.

The Senate Transportation Committee is expected to hold a hearing on both the Rendell plan and the Scarnati plan in June. Mr. Rendell would like the Legislature to approve the lease plan by June 30, when it is scheduled to recess for the summer. But legislators say the deal is far too complex for them to be rushed and aren't sure they can meet that deadline.

Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 1-717-787-4254.
First published on May 28, 2008 at 12:00 am