Increasing gas taxes suggested as temporary solution to PennDOT funding crisis
Jun. 15—A short-term solution to Pennsylvania's transportation funding crisis may include a 4.2 cents a gallon increase in gasoline taxes with the ultimate goal of replacing the gas tax within a decade.
The possible increase was discussed Monday during a virtual meeting of the 46-member Pennsylvania Transportation Revenue Options Commission, consisting of lawmakers, transportation leaders and others in the transportation industry.
The commission is tasked with providing Gov. Tom Wolf with short-term and long-term recommendations by Aug. 1 to address an ongoing funding crisis resulting from a reduction in gas tax revenue and an increased use of electric vehicles.
For every gallon of gas, there is a 57.6 cent tax that goes to PennDOT and an 18.5 cent tax to the federal government to pay for infrastructure improvements.
The gas tax increase was one of several short-term solutions discussed to alleviate PennDOT's $9.3 billion annual shortfall in revenue.
PennDOT's annual budget of $8.6 billion this year, includes $6.8 billion for highways and bridges.
Leanne Sherman, executive director of the American Council of Engineering Companies of Pennsylvania, said the gas tax ultimately needs to be phased out.
Paul Caulfield, a consultant facilitating the meeting, said the transportation system is aging and in need of substantial investment.
He said the commission is a wide cross-section of transportation leaders working in smaller groups to discuss possible solutions.
Other options for revenue sources discussed included:
— Moving the $619 million in state police funding from PennDOT's budget to the state's general fund budget.
— Increasing registration fees, including adding fees for electric vehicles, to raise $787 million.
— Increasing vehicle taxes to raise $1.29 billion.
— Charging drivers fees for the number of miles driven.
— Charging fees for delivery costs to household and other locations.
Amy Kessler of the North Central Pennsylvania Regional Planning and Development Commission, said everyone should be paying for transportation, not just drivers of vehicles.
She noted that during the pandemic there was a substantial increase in deliveries, suggesting there could be a fee charged for shipping costs.
Another solution is to toll nine bridges under construction on interstate highways, including the Lenhartsville Bridge on Interstate 78 in Greenwich Township.
The tolling is being addressed by a separate committee and is already in motion with ongoing environmental studies, and virtual and telephone town meetings.
The proposal calls for tolls of $1 to $2 on interstate highways and partnering with businesses to pay for construction costs to rehabilitate bridges.
PennDOT received $407.2 million in federal relief in February for road and bridge construction.
Larry Shifflet, deputy secretary of transportation, said PennDOT hopes to receive infrastructure funding proposed in President Joe Biden's infrastructure plan. The president proposed $115 billion for road and bridge repairs.
Shifflet noted that Biden announced the infrastructure plan in March in Pittsburgh, and Transportation Secretary Pete Buttigieg promoted the plan in May in Pittsburgh.
He is also hopeful that Congress will reauthorize funds in the Fixing America's Surface Transportation Act, which expires Sept. 20, 2021.
