JOHNSTOWN —
Gov. Ed Rendell on Thursday called upon state legislators to take action before fall to fill a nearly $500 million revenue shortfall to meet the state’s highway, bridge and mass transit needs.
Rendell started a four-day tour Tuesday at the eastern end of the state and landed in Johnstown shortly after noon Thursday in what is being dubbed the “Fund Pennsylvania Transportation Now” tour.
The governor spent about a half hour talking to county and transportation leaders, urging them to ask state legislators to return to Harrisburg on Aug. 23 for a special session to deal with the funding shortfall.
He is pushing for legislative support to approve options that would replace the $472 million the state will not receive annually due to the federal government’s refusal to allow tolls on Interstate 80.
Rendell estimated that $570 million would be generated every year – in excess of the funding shortfall – if legislators would impose gas tax increases and hikes in license and registration fees to match inflation since 1997, when the gas tax was last increased.
“We have to act and we have to act now,” Rendell said.
Immediate action to increase taxes and fees means the additional money could be put to work as soon as the next construction season.
Without immediate revenue enhancements, it could be a number of years until steps are taken to increase revenue, he said.
Republican gubernatorial candidate Tom Corbett, currently the front-runner in the race, has signed a no tax increase pledge if elected, meaning it could be five years before the funding gap is filled and more money is available for highways, bridges and mass transit, Rendell said.
State Sen. John Wozniak, D-Westmont, speaking prior to the governor’s arrival in the city, said he agrees more revenue is needed for transportation, but doubted many legislators are ready to act in this election year.
“There’s a lot of pushback. This is a tough year,” Wozniak said.
While Pennsylvania license and registration fees are lower than in many surrounding states, the Keystone State has higher gasoline taxes than many others, Wozniak said.
In making his case in front of the 117-year-old Cambria transit facility in Moxham, Rendell said time is the big enemy in waiting for the much-needed repairs.
Highway and bridge construction costs have increased by 80 percent over the past several years and will continue to climb over the next five years, he said.
Estimates are a 30 percent increase in license and registration fees, or $8 or $9, each would generate $327 million and a 3.5-cent hike in gas tax would bump the revenue enhancement to the $570 million mark.
Rendell said the driving public “wouldn’t even notice” the increase because of the ongoing fluctuation in the price of gasoline. He also speculated that few people are even aware of what they currently pay in license and registration fees.
One other option Rendell wants the Legislature to consider is getting rid of a loophole that allows all but one of the oil companies selling 12.5 billion gallons of gasoline in the state annually to pay minimal taxes.
Estimates are that if the oil companies would be forced to pay 6.9 percent, it would result in $850 million in revenue, up from the current $70 million they pay the state.
Bringing his plea to a local denominator, Rendell said Cambria County has 60 structurally deficient bridges and 61 miles of state roadway classified as “poor.”
But the county also has significant mass transit needs, including the $20 million needed to fix up the old trolley barn.
Mass transit is not just about Philadelphia and Pittsburgh, he said, citing figures that an estimated 3,000 more people are using CamTran monthly than a year ago.
Rendell was in Blair County earlier in the day and was headed to Indiana and Westmoreland counties after leaving Johnstown.
Today he will be in Pittsburgh and Beaver, Mercer and Butler counties.
Local News
Related Photos
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Gov. Ed Rendell (left) walks toward his bus after speaking Thursday in Johnstown. At right are (from Rendell’s left) Johnstown businessman Ed Cernic, city Councilman Frank Janakovic and city police Chief Craig Foust. Dave Lloyd
Discussion
Transportation funding sought
Rendell makes stop in Johnstown
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