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Politics & Government

PA Dems Call for Higher Gas Tax, Fees to Pay for Infrastructure

More lawmakers want transportation to be a top priority in 2012.

House Democratic leaders joined the growing number of voices calling for transportation infrastructure to be a 2012 legislative priority, even if Pennsylvania drivers must pay more at the pump in an election year.

Democrats introduced a series of bills Wednesday that would build on the proposals outlined by Gov. Tom Corbetts Transportation Funding Advisory Commission last summer. The proposals would:

  • Uncap a portion of the state’s gasoline tax, known as the Oil Franchise Tax, which is applied to the first $1.25 of every gallon of gasoline at the wholesale level.
  • Increase vehicle registration and drivers’ license fees.
  • Aim a larger portion of toll revenue from the Pennsylvania Turnpike toward mass transit in the state.

State Rep. Mike Hanna, D-Clinton, said Pennsylvania’s deteriorating roads and bridges deserve a higher priority than the governor has given them. 

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If Gov. Corbett is choosing not to lead on this issue, then it is time for the Legislature to take action,” Hanna said. “We’re taking this directly from Gov. Corbett’s advisory commission.” 

The largest piece of new revenue would be generated by uncapping one portion of the state’s gasoline tax--now 32.2 cents per gallon, the 14th highest in the nation. The proposed increase would generate an estimated $1.36 billion in new annual revenue, but would be passed on to consumers.

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Democrats on Wednesday did not estimate how much the increase would be, but the governor’s commission estimated an increase of up to 10 cents per gallon

The average price of gas in Pennsylvania was $3.39 per gallon Wednesday. 

Other revenue-increasing plans contained in the Democratic proposal mirror the commission’s recommendations, but Hanna stressed the proposal was intended to “start the conversation” and not be a final product. 

Corbett’s commission outlined a plan to generate about $2.5 billion in annually recurring revenue this summer, but the governor has left the plan on the shelf for the past six months, citing concerns over raising revenue while the state is recovering from the Great Recession and economic growth is sluggish. 

Dennis Buterbaugh, spokesman for the state Department of Transportation, said the Corbett administration’s policy has not changed during the past few months. 

“It would be a lot easier to work on this issue if the economy was robust, but it’s not right now,” Buterbaugh said. 

State Rep. Dan Frankel, D-Allegheny, said those concerns “don’t hold water,” because investing in transportation projects could generate up to 30,000 jobs. 

Potential bipartisan issue 

The potential to create jobs is a big part of the reason transportation could be a bipartisan issue. 

Democrats--who are in the minority in the state House and Senate--have not seen eye-to-eye with most agenda items pushed by Corbett and legislative Republicans. But Hanna said transportation could be different. 

What we’re trying to do with this legislation is signal our willingness to cooperate in fixing a decades-old problem here in Pennsylvania,” Hanna said. 

The Democratic plan is similar to a bill introduced this past fall by state Sen. Jake Corman, R-Centrewho took the governor’s commission’s recommendations and translated them into legislation.

That bill did not get so much as a legislative hearing, but Republicans said they also want action on transportation, though they want the governor to lead the way. 

State Sen. John Rafferty, R-Montgomery, chairman of the Senate Transportation Committee, said Corbett “has to be directly involved” before anything will be accomplished, due to the complexity of any transportation funding bill. 

“We need to address our infrastructure,” Rafferty said Tuesday. “That’s what drives economic development is transportation.” 

His Democratic counterpart on the Senate Transportation Committee, state Sen. John Wozniak, of Cambria, echoed those sentiments Wednesday and said he looked forward to hearing from the governor. 

“Transportation infrastructure is economically vital to the state,” Wozniak said. “Our crumbling roads and bridges must be addressed to protect the safety of all motorists. Plus, transportation projects are a powerful tool to get people back to work.” 

Turnpike tolls for transit 

Frankel stressed the need to include additional funding for mass transit in any transportation package.

Under the Pennsylvania Constitution, gasoline taxes are forbidden from being used to subsidize mass transit, which forces the state to scratch together funding from other sources.

According to the state Department of Transportation, about $1.1 billion will be used for all mass transit subsidies this year. 

The state provides subsidies to maintain the 38 mass transit agencies statewide. Some receive as much as $20 per rider in state and federal taxpayer subsidies, said state Rep. Mike Sturla, D-Lancaster

Under Act 44 of 2006, the Pennsylvania Turnpike is required to transfer $450 million annually to the state budget, of which $250 million helps to offset the cost of mass transit and $200 million is used for road and bridge projects statewide. 

The Democratic plan would redirect the $200 million portion to mass transit as well, and the loss of those funds from road and bridge projects would be made up with the new revenue from other parts of the plan, Frankel said. 

Frankel’s bill also would boost mass transit funding by redirecting about $172 million in state sales taxes to mass transit.

Mass transit gets 4.4 percent of all state sales tax receipts, which would increase to 6.4 percent, leaving a hole in the general fund.

Frankel suggested using revenue from a proposed new fee on natural gas drillers to offset the difference.

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