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APC calls for further reduction in bridge and highway fund diversions

June 16, 2022

Associated Pennsylvania Constructors is reviving an initiative to further reduce the diversions from the Motor License Fund, the constitutionally protected repository for fuel taxes and license and registration fees that fund PennDOT’s bridge and highway program.

The initiative would keep $300 million in the Motor License Fund, instead of using it to subsidize State Police operations. Pennsylvania has approximately $2 billion in unspent federal COVID money and a projected budget surplus of nearly $4.5 billion, which could be tapped to back-fill the State Police budget.

The Commonwealth had been gradually reducing the annual diversions. The diversion this fiscal year has been $673 million. Governor Wolf had proposed to take the diverted amount down to $500 million, and this initiative would take it down to $200 million.

In a letter to members of the General Assembly, APC said the plan would provide additional revenue for PennDOT’s construction program without raising taxes or license and registration fees. Additionally, it would enable Pennsylvania to fund the public-private partnership major bridge initiative without imposing tolls on those bridges.

Finally, it would cover the required state match of nearly $1 billion that is a condition for receiving $5 billion in federal infrastructure funds over the next five years.

The initiative comes as legislators continue work on a new state budget set to go into effect July 1. APC this week launched an outreach program inviting transportation advocates to urge their state legislators to support the initiative. Advocates can identify and contact their legislators through this link.

 

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