Iowa legislators stepping up on transportation

While we haven’t forgotten that the “P” in PHIA stands for “Pennsylvania,” from time to time it’s worth noting how other states are dealing with transportation funding issues.  News reports from Iowa suggest that legislators from both parties are coalescing toward a proposal to raise user fees in order to address the Hawkeye State’s transportation needs.  The effort is being advanced by legislators and is based on recommendations of the governor’s transportation advisory commission.  Sound familiar?

For a news account, click here.

To read a copy of the PA’s Transportation Funding Advisory Commission Report, click here.

Transportation funding goes bipartisan, bicameral

Support for a transportation funding solution broadened considerably this week as three leaders of Pennsylvania’s House Democratic caucus introduced legislation that mirrors the bills introduced last fall by a Senate Republican. The House and Senate versions are both patterned after the recommendations of Gov. Tom Corbett’s Transportation Funding Advisory Commission.

State Rep. Mike Hanna (D-Clinton), the minority whip, described the initiative as “extending an olive branch” to Republicans and Governor Corbett, signaling bipartisan support for a major policy issue at a time when school vouchers, privatization of state liquor stores and a Marcellus Shale drilling fee have languished in partisan disagreement.

At a Capitol news conference, several reporters expressed skepticism that legislators could muster the political will to address the problem in an election year. However, recent public opinion polls show that a majority of voters believe transportation funding is the most important issue currently facing Pennsylvania, and the TFAC’s proposed solution might actually save a typical motorist more than it costs in wasted gasoline and vehicle maintenance.

To view an excerpt of the news conference, click below: 

To see Associated Pennsylvania Constructors’ response, click here.

2011 in review: Still no transportation funding

If your holiday wish is to see some action on the transportation funding issue, I’m afraid you should expect coal under your tree this year. Below is commentary provided by PHIA on the transportation funding effort as 2011 closes with an industry facing an uncertain future.

Veterans of the transportation construction industry are not exaggerating when they tell you that efforts to establish steady, sustainable, comprehensive funding sources for highways and public transit have been underway for decades.

A year ago, there were reasons for great optimism that 2011 was shaping up to be the year that a comprehensive funding solution, finally, could occur:

• Pennsylvania elected a pro-business governor who seemed to understand the need, and expressed support, for a sound transportation system, and he appointed a PennDOT secretary from the industry whose knowledge and understanding of the problems is unsurpassed.
• There was growing, bipartisan agreement in the General Assembly that the funding issue needed to be addressed.
• The public’s support for a funding solution that would improve safety and relieve congestion was growing. Polling showed that a majority of voters were willing to make a modest investment in improving the transportation and believed that transportation funding was the most important issue facing Pennsylvania.
• There was a strong need to stimulate the economy by creating jobs, and a robust economic study showed that not only would a well funded transportation do that, the majority of the jobs created would be in industries other than construction.
• A coalition of transportation system advocates, the Keystone Transportation Funding Coalition, came together in support, simply, for a comprehensive transportation funding solution. The coalition transcended ideological, political, geographical and socioeconomic boundaries.
• Newspaper editorials across the Commonwealth expressed nearly universal, strong support for a transportation funding solution.
• The construction industry itself stepped up and marshaled substantial resources to mount an education campaign to support a funding solution.

When Governor Corbett appointed a funding advisory commission and charged it with crafting a funding solution, and left nearly every option on the table except increasing the cents-per-gallon flat gas tax, optimism peaked. The commission delivered its recommendations on Aug. 1, and Corbett said he would review the report and announce which recommendations he would endorse.

The fall legislative session came and went without a signal from the governor. Sen. Jake Corman, a Centre County Republican, finally agreed to introduce legislation that mirrored the funding commission’s recommendations.

Administration officials assured transportation funding proponents that the governor supports a funding solution, but did not wish to distract legislators from focusing on several other public policy initiatives, such as school vouchers, privatization of liquor stores and the establishment of Marcellus Shale fees.

The governor and the General Assembly left the transportation funding issue for 2012, an election year for all House members and half of the Senate. Most recently, the word from the administration was that transportation funding would be considered as part of the budget process and would become a featured component in a planned job-creation initiative.

“I cannot imagine a more favorable environment in which to address this issue than the one we’ve had in place in 2011,” said Robert Latham of Associated Pennsylvania Constructors. “Nevertheless, our job is to sustain that favorable environment so that policymakers have a level of comfort that the public is on board and does, in fact, want a safer, less congested transportation system in Pennsylvania.”

PennDOT Secretary Barry Schoch has warned that without a funding solution, the state is facing a plethora of additional weight-restricted and/or closed bridges, adding to the traffic congestion that has already affected the more populous areas of the state.

The Post-Gazette reported recently that Pittsburgh’s Port Authority has begun planning for a 35 percent reduction in service hours that will come next fall if Gov. Tom Corbett and the General Assembly fail to act on a statewide transportation funding shortfall. While Pittsburgh’s situation is particularly dire, public transit systems across the state are facing similar challenges.

Meanwhile, it is clear that there is no consensus in Congress regarding a new multi-year transportation funding package to replace the one that expired two years ago.

“It’s long past time that we get moving on transportation funding,” Latham said. “Are our elected officials preparing to continue to ignore this issue while conditions deteriorate?”

PennDOT forecasts diminished 2012 highway construction program

PennDOT Deputy Secretary Scott Christie last week outlined the department’s projected 2012 construction program during an annual gathering of the highway construction industry. And, the news wasn’t good.

While lettings this year will exceed the original projections of approximately $1.9 billion, Christie put the 2012 forecast at a maximum $1.5 billion in lettings, a decrease of more than 20 percent.

Given its diminishing resources, PennDOT will focus on “preservation of the network” in 2012 and plans to bid only six projects exceeding $20 million, with a potential of adding eight more if circumstances warrant.

Christie was quick to add that the $1.5 billion figure would increase to about $2 billion if the state enacts a comprehensive funding package soon, due to the department’s ability to bond against future anticipated revenues.

Also addressing the gathering of approximately 1,500 people at the Associated Pennsylvania Constructors Fall Conference was PennDOT Secretary Barry Schoch, who outlined elements of a funding proposal that would generate additional short and long-term funding. Schoch indicated that a key component of the plan would be to systematically increase the cap on the Oil Company Franchise Tax in out years when the economy improves, but that short-term bonding could be used to generate immediate funds.

While the specifics of such funding proposal are still being vetted with the state legislature, Schoch indicated that the passage of a funding proposal is still within reach. He said Gov. Tom Corbett is working on the specifics of making a funding-package announcement, which could come as early as this week.

Poll shows broad support for addressing funding problem

A Franklin & Marshall College Poll shows that a majority of Pennsylvania voters rate the transportation funding issue as either the most important or one of the most important issues now facing the Commonwealth.

The issue outpolled the Marcellus Shale tax, school vouchers, liquor store privatization and electoral vote distribution in terms of importance. Perhaps of even greater significance is that only 8 percent of those surveyed said the transportation finding issue is not important.

The Associated Pennsylvania Constructors commented on the poll results in a news release distributed earlier this week. To view the news release, click here.

Leading business organization joins transportation funding chorus

The Pennsylvania Business Council (PBC) joined a growing list of business and economic development organizations in support of the Transportation Funding Advisory Commission recommendations. The PBC represents some of the largest employers in the state and issued a policy statement supporting the recommendations of the Commission, which was appointment at the direction of Gov. Tom Corbett earlier this year. The PBC also applauded Sen. Jake Corman for his earlier announcement that he would introduce legislation to enact those recommendations outlined in the report, which was released on Aug. 1. Read more

A Primer on User Fees and Taxes

Triad Strategies recently posted an item on its blog, The Triadvocate, explaining the difference between general taxes and user fees. The following is a re-post of that blog:

Your teacher told you in grade school that it would be important to know how to use a dictionary. Now, the current Pennsylvania public policy debate on transportation funding has given you the perfect example of why she was right.

Most people say they don’t want new taxes. At the same time, people say they want better, safer roads and functional mass transit systems in urban areas. They are willing to pay a reasonable sum for using these facilities. So it’s important to know how you are paying for what you want and need and what the labels mean. Read more

Joint transportation committee hears TFAC update

Members of the Pennsylvania House and Senate transportation committees opened a joint hearing Tuesday to be briefed on the recommendations of Gov. Tom Corbett’s Transportation Funding Advisory Commission (TFAC).

PennDOT Secretary Barry Schoch opened with an update on the damage caused by Hurricane Irene and Tropical Storm Lee, then followed with a summary of the TFAC report. Much of his focus was on various “modernization” initiatives that PennDOT already has begun to undertake.

He also laid out the reasoning behind the recommended lifting of the cap on the Oil Company Franchise Tax, explaining that unlike some previous funding proposals all transportation system users, including those who are not Pennsylvania residents, would share the burden equitably. Read more

Update: Congress formally approves 6-month extension

Source:  AASHTO Journal, Sept. 16, 2011

The United States Senate put its formal stamp of approval on extending the federal highway program for another six months.  PHIA reported earlier this week that Congressional leaders were close to making a deal to delay the reauthorization of the nation’s highway program until March 2012 rather than address the issue this fall. 

That deal came to fruition late last night when the Senate voted 92-6 to send President Barack Obama a measure extending authorization at current funding levels for federal highway and transit programs until March 31.  Also part of the bill was an extension for federal aviation programs until Jan. 31.  The House of Representatives passed the bill by voice vote earlier in the week without any debate.  Read more

Patriot-News editorial calls for funding support

Those who attended PHIA’s annual meeting in April may recall that the Harrisburg Patriot-News was recognized for its insightful editorials supporting a transportation funding solution.

The Patriot-News editorial of Sept. 16 shows unwavering support for crafting a solution to this dilemma.  To read the editorial, click here.