PennDOT expects nearly $1 billion in funding cuts due to COVID-19
PennDOT anticipates more than an $800 million reduction in revenues for much-needed road and bridge projects this year because less motorists are driving due to COVID-19, officials said this week.
Less travel translates into less revenue for PennDOT from a gasoline tax paid by consumers at the pumps.
Acting PennDOT Secretary Yassmin Gramian said an early estimate also indicates $100 million less funding for multimodal initiatives such as sidewalks and bike paths, and $90 million less in funds distributed to municipalities for road work.
“We are transitioning into a new normal,” Gramian said this week during a virtual hearing before the state Senate transportation committee.
“Resurfacing projects will be reduced. Bridge replacements will be shifted to lower cost preservation activities.
“Many of the ways we do transportation will change forever.”
With revenues down more than 30 percent during the coronavirus outbreak, PennDOT is hoping to obtain federal funding from the Coronavirus Aid, Relief and Economic Security Act.
“We are going to have to cut all the programs if we don’t get federal support,” Gramian said. “Every action we have taken has been to mitigate the spread of COVID-19. If we don’t get the federal support, we have to look into other ways to get funding.”
On March 17, PennDOT halted road projects following Gov. Tom Wolf’s stay-athome order on March 16.
Soon after, emergency projects, including Interstate
78 work in Greenwich Township, resumed.
On May 1, construction of more than 800 projects resumed, and on Monday, May
11, all maintenance projects resumed.
Kim Ward, a Greensburg Republican and committee chairwoman, questioned how PennDOT came up with a nearly $1 billion deficit.
Gramian said the numbers were provided by the state Department of Revenue.
To help reduce the deficit, Gramian said, the department has reduced its operational costs.
“We are reviewing what options are available, and unfortunately now they are not that great,” Gramian said.
Gramian said she anticipated a reduction in a program to upgrade traffic lights going from $40 million down to $5 million.
State Sen. Camera Bartolotta, a Republican representing Greene, Beaver and Washington counties, questioned if PennDOT was warned early that Gov. Wolf was planning to shut down.
Gramian said PennDOT learned on March 13 of the shutdown.
Another problem facing PennDOT is that less motorists are driving on the Pennsylvania Turnpike, resulting in less revenue from the turnpike going to PennDOT from the turnpike commission. The turnpike is required to pay $450 million in 2020 to PennDOT to use for transit services.
The turnpike notified PennDOT that it could not make its July payment of $112 million on time.