The Greater Philadelphia Chamber of Commerce (GPCC) believes that a safe, reliable transportation network is vital to a strong regional economy and provides a key competitive advantage for attracting and retaining businesses and growing jobs. 

Governor Tom Corbett appointed a Transportation Funding Advisory Commission (GTFAC) to develop a comprehensive, strategic proposal to address Pennsylvania’s $3.5 billion transportation funding deficit.  This week, a final report is being presented to the Governor.  GPCC Chamber President and CEO Rob Wonderling served on the Commission.

GTFAC included the revenue enhancement strategies below in proposed funding scenarios now under review: 

  • Uncap, Increase the Oil Company Franchise Tax, which is a levy on the wholesale price of gas, over 5 years
  • Legalize small games of chance at taverns to fund infrastructure
  • Increase fees and extend duration of drivers licenses, vehicle registrations and safety inspections
  • Increase fees dedicated to transit: tire tax and vehicle lease tax
  • Increase transit local match
  • Build in inflationary growth of fees
  • Consolidate, privatize or modernize at PennDOT and transit agencies
  • Shift the costs for state police from the motor license fund to the general fund
  • Transfer portions of vehicle sales tax revenues to Motor License Fund and to Transit
  • Create public-private partnerships that can lease state-owned roads and bridges, make improvements and charge tolls

Governor Corbett discouraged the Commission from considering an increase in the gas tax at the pump, emphasizing again his no-tax pledge. At a current rate of 12 cents per gallon, the gas tax was last increased in 1983. Indexing that tax to inflation would raise it by 4 cents, and would generate $260 million a year.

Pennsylvania’s transportation investment strategy was dramatically impacted by the federal decision denying the state’s application to toll I-80.  Funding levels for roads, bridges and public transit were subsequently reduced by $472 million. In addition to this shortfall, the state Transportation Advisory Committee (TAC) recommends an additional $3.5 billion is needed to maintain existing state and local highway and bridge systems and public transit.

View the full Transportation Funding Study here.

Advocacy Efforts

The Greater Philadelphia Chamber of Commerce joined the Keystone Transportation Funding Coalition (KTFC), a broad-based coalition of stakeholders working to urge a prompt and comprehensive solution to the Pennsylvania’s transportation infrastructure needs.  Members of the coalition include the highway construction industry and public transit systems, as well as Chambers of Commerce, labor unions, the Hospital and Health Care Association, AARP, 10,000 Friends of Pennsylvania, and associations for trucking, freight rail, passenger rail, seaports, airports, local governments, travel and tourism, farmers and bike and pedestrian trail supporters.

During the legislative recess, GPCC will be joining members of the KTFC to meet with area legislators and communicate the urgency and level of funding necessary to repair, maintain and improve the Commonwealth’s transportation network.  In an effort to present relevant data at these meetings the Chamber is also urging members to visit ReConnectPA.org, an interactive map where citizens can “flag” traffic issues, safety concerns, road problems, and possible solutions.  These issues and ideas will then be compiled and shared with stakeholders and decision-makers.

To review details of the GTFAC Potential Revenue Sources and Funding Scenarios, visit www.dot.state.pa.us

Fall Legislative Agenda

When state lawmakers reconvene in September, their agenda is expected to include consideration of a Marcellus Shale impact fee, transportation funding, state store privatization, school vouchers, and pension reform.

In July, Governor Corbett’s Marcellus Shale Advisory Commission issued a report that included support for a fee targeted at certain effects from drilling for municipalities and emergency responders in managing their increased costs.  Governor Corbett continues to oppose a severance tax on natural gas extraction.  View this report.

Later this summer, the governor will reportedly convene a third panel to look for ways that state government can be privatized or “innovated.” The Administration commissioned a study, also due this summer, to evaluate options for liquor store divestiture.  Meanwhile, House Majority Leader Mike Turzai unveiled his plan for privatizing the state-run liquor stores, a concept supported by the Governor.

Enactment of a private school voucher program also remains a top priority for the Corbett Administration. 

In addition to the above updates, get the latest in Pennsylvania taxes from the June/July 2011 issue of Tax Update, a bi-monthly e-newsletter distributed by the Pennsylvania Department of Revenue.