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Transportation report calls for increased gas tax, fees

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By Chris Buckley
VALLEY INDEPENDENT
Tuesday, November 14, 2006


Repairing Pennsylvania's deficient bridges and highways, and properly providing financial support for mass transit will come with a price.

That price was unveiled Monday.

And it may be too steep a price for lawmakers, let alone consumers.

The Transportation Funding and Reform Commission released the findings of a 16-month study that includes recommendations to increase various fees and taxes to raise $900 million for highway and bridge repairs and $760 million in public transit.

Specifically, the report calls for an 11.5 cent per gallon increase in the oil franchise tax to pay for highway and bridge improvements and an additional penny per gallon hike in the tax to provide $65 million to improve county-owned bridges.

Although oil companies could absorb some of those increases, traditionally hikes in the oil franchise tax translate to increases at the pump.

The report also recommends an unspecified increase in motor vehicle registration and license fees. While that figure would have to be determined by the state Legislature, Pennsylvania Department of Transportation Secretary Allen D. Biehler proposed an on average $15 a year hike on license fees.

Pennsylvania ranks fifth nationally in miles of state-maintained highways, behind just Texas, Virginia, North Carolina and South Carolina. Pennsylvania ranks third in total number of state-maintained bridges, trailing only Texas and North Carolina.

Public transit could receive state financial support through increases in the state and local realty transfer tax, the local income tax or earned income tax rates, the report suggests.

The state constitution prohibits the use of oil-related tax revenues to support public transit.

The report also recommends improved efficiency by PennDOT, as well as possible private-public partnerships.

"This report laid out the scope of the crisis and what it would take to get those on solid ground," PennDOT spokesman Rich Kirkpatrick said.

State Sen. J. Barry Stout (D-Bentleyville), a member of the seven-person commission, said the panelists knew selling the report would be a challenge.

"It's going to be extremely controversial - we knew that when we were working on this report," Stout said. "We want a meaningful plan for repairing our highways and bridges and funding public transit."

Stout said he has long supported user fees to pay for transportation projects because that way, those who use the highways and bridges pay for the upkeep.

But the proposal could be a hard sell in the Legislature.

"That not going to happen," State Rep. Peter J. Daley (D-California) said.

"I don't see that happening in the Legislature, especially since we do not have meaningful property tax reform."

Stout noted that the report is just a proposal for what it would cost to meet all of the state's transportation needs. But the minority chairman of the Senate Transportation Commission predicted the hefty gas tax hike would never make it to the Legislature.

Stout said it is "more realistic" to expect a vote on a gas tax hike of 5 cents to 6 cents per gallon.

Serious consideration won't begin until the 2007-2008 Legislature is sworn in early next year.

Gov. Ed Rendell will "review it carefully before making any decisions," spokesman Chuck Ardo said.


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