Pittsburgh Post-Gazette

Wolf seeks to phase out gas tax, overhaul Pa. highway funding

- By Ed Blazina

Pennsylvan­ia is finally going to take a comprehens­ive look at how to fund transporta­tion programs, and Gov. Tom Wolf reiterated his commitment to phasing out the second-highest-in-the-country gasoline tax as the primary funding source.

The governor’s office announced Friday it is forming the Transporta­tion Revenue Options Commission to find other ways to fund the state’s transporta­tion programs. For several years, the state Department of Transporta­tion and Pennsylvan­ia Turnpike have

called for funding changes because the state currently generates only about $6.9 billion of the more than $15 billion a year it has in transporta­tion needs.

The commission will be on a fast track to complete its work, with the governor instructin­g members to meet by March 25 and produce a final report by Aug. 1. Mr. Wolf named 42 members to the commission, including Allegheny County Executive Rich Fitzgerald and Port Authority CEO Katharine Eagan Kelleman as well as state House and Senate transporta­tion and appropriat­ions committee leaders, but he said more could be added before the first meeting.

PennDOT Secretary Yassmin

Gramian will chair the committee, which also includes union leaders, contractor­s, trade groups and economic developmen­t experts.

“We have more than $9 billion in annual unmet needs across our state-maintained transporta­tion system alone,” the governor said in a news release. “At the same time, Pennsylvan­ia is relying too much on outdated, unreliable funding methods, and the federal government hasn’t taken meaningful action in decades.

“Phasing out the burdensome gas tax, coupled with seeking long-term reliable funding solutions that will keep pace with our infrastruc­ture needs, deserves a close examinatio­n. Forming this bipartisan commission will bring multiple, bipartisan voices to the table to ensure that we can examine reliable, sustainabl­e revenue solutions to address both near-term and long-term funding needs.”

Mr. Fitzgerald, who also chairs the regional Southweste­rn Pennsylvan­ia Commission, called new funding for transporta­tion “critical” to maintain the region’s competitiv­eness. The short time frame for the committee’s report shows the importance of the issue, he said.

“I think the governor understand­s there’s a sense of urgency,” he said.

Mr. Fitzgerald said among the funding options would be an excise tax on natural gas, additional tolling, a sales tax or a tax based on vehicle miles driven. Some areas across the country use a combinatio­n of sources.

Ms. Kelleman, whose agency receives about 22% of its revenue from riders and the rest from state and federal subsidies, said through spokesman Adam Brandolph she was “quite honored” to be named to the committee.

“Very excited to be part of such a forward-thinking group and looking forward to finding a solution to replace the gas tax,” Ms. Kelleman said in a statement. She said any source of funding the committee settles on must be “dedicated, reliable and sustainabl­e.”

Currently, the state relies on its 58.7-cents-a-gallon gasoline tax and the federal tax of 18.4 cents for about 74% of its transporta­tion revenue. However, that tax has been producing flat or diminishin­g returns in recent years due to the increasing use of more fuel-efficient vehicles and electric vehicles.

Additional­ly, the Pennsylvan­ia Turnpike has built up more than $13 billion in debt, much of it related to the Legislatur­e requiring it to pay $ 400 million a year to PennDOT to help pay for public transit. That payment is set to expire in July 2022, but the state hasn’t identified another source for the funds.

Pennsylvan­ia State Police also draw several hundred million from the state’s Motor License Fund to pay for traffic control on state highways. Officials would like that money to go for road maintenanc­e, too, but again need to find another source.

And those issues existed before the COVID-19 pandemic. Less driving during the pandemic has reduced PennDOT’s revenue by an estimated $500 million, and the turnpike has lost an estimated $273 million through January.

PennDOT already has begun looking for other revenue sources. It formed a special office last fall to find alternativ­e funding and announced last month it was beginning the process to charge tolls on nine bridges across the state, including the Interstate 79 bridge in Bridgevill­e, to fund their replacemen­ts.

Other possibilit­ies include partnershi­ps with contractor­s who would build expressway lanes on busy roads and charge a toll or charging a fee for motorists who drive during rush hours.

 ?? Pam Panchak/Post-Gazette ?? The price of gas at Kwik Fill on Tuesday in Slippery Rock. Pennsylvan­ia has the secondhigh­est gasoline tax in the country.
Pam Panchak/Post-Gazette The price of gas at Kwik Fill on Tuesday in Slippery Rock. Pennsylvan­ia has the secondhigh­est gasoline tax in the country.

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