State transportation funding package proposed
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HARRISBURG -- Saying Pennsylvania "must act now to repair its crumbling transportation network," state Sen. Jake Corman today proposed legislation to adopt many of the funding recommendations made by a commission appointed by Gov. Tom Corbett, including fee increases and lifting of a cap on the wholesale gasoline tax.
"The evidence is very clear that we have a transportation infrastructure problem in Pennsylvania," said Mr. Corman, R-Centre, chair of the Appropriations Committee. The state has more than 8,000 miles of roads in poor condition and more than 5,000 structurally deficient bridges, the largest number of any state. A total of 650 bridges have weight restrictions and 50 are closed.
The governor's Transportation Funding Advisory Commission in August recommended measures that would eventually raise $2.7 billion in new annual revenue for roads, bridges and public transit.
Among its major recommendations, the commission called for lifting a cap on the Oil Company Franchise Tax, which is paid by fuel distributors. Currently, the tax applies to only a maximum of $1.25 per gallon of the wholesale price.
Without the cap in place, the current per-gallon tax would be 13.8 cents higher for gasoline and 18.7 cents higher for diesel. The plan phases out the cap over five years. Some or all of the increase could be passed along to drivers at the pump.
The annual fee for vehicle registration hasn't been raised since 1997. Adjusting it for inflation that has occurred since then would take it from the current $36 per year to $49. A similar adjustment in the cost of renewing a driver's license would move it from the current $29.50 for four years to $34.50.
In addition to the inflation adjustment, the commission proposed a $10 registration fee increase, with the money it generates -- $110 million -- going to local projects.
The panel also proposed several cost-saving measures. Owners would register their cars every two years instead of annually, and those tiny license plate stickers would be eliminated to save money and allow for online renewals. Driver's license renewals would be every eight years rather than every four, and private companies would be authorized to administer tests to new drivers.
Stretching out the time between registration and driver's license renewals would increase convenience for drivers while saving the state $5.5 million on reduced paperwork, the commission estimated.
First Published October 19, 2011 12:21 pm
