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For Immediate Release
February 6, 2007
Back
Senator Madigan Weighs in on Rendell Transportation
Package
While none of the funding proposals outlined by the Governor in his
budget address represent a "silver bullet" for solving Pennsylvania's
transportation funding needs, they do represent a good starting point
for debate and discussion, according to Senate Transportation Chairman
Roger Madigan (R-Bradford).
The Governor's budget proposal for 2007-2008, released today, included a
proposal for increasing funding for highways, bridges and public
transportation. This announcement follows the November 2006 release of
the Transportation Funding and Reform Commission report which indicated
a need for an additional $1.7 billion annual funding for transportation
infrastructure and operating subsidies.
"Today, Governor Rendell acknowledged the incredible challenges facing
Pennsylvania's transportation system, offered options and made an
important recommendation," said Madigan, Chairman of the Senate
Transportation Committee. "His recommendation is innovative and worthy
of serious consideration."
The Governor described 4 options for arriving at the $1.7 billion
recommended in the Funding Commission report. They include:
Option 1
Increase fuel taxes by 12.5 cents/gallon and license and
registration fees by 23% to increase funding of highway related needs by
$965 million.
Increase the realty transfer tax (RTT) by .9% and local contributions by
25% to fund increased transit needs by $760 million.
Option 2
Lease the Pennsylvania Turnpike to achieve a $965 million return for
highway related needs.
Increase RTT by .5%, increase sales taxes, increase other PennDOT fees
by 73% and increase local contributions by 25% for transit needs.
Option 3
Lease the Pennsylvania Turnpike to achieve a $965 million return for
highway related needs.
Impose limited tolls on Interstates, I-78, I-79, I-80, I-81 and I-95;
.5% RTT.
Increase Title, Inspection, Identification card and Information fees
charged by PennDOT by 124% to fund transit needs.
Option 4
Lease the Pennsylvania Turnpike to achieve a $965 million return for
highway related needs.
Impose New Oil Company Gross Profits Tax of 6.17% dedicated for transit
needs.
In the budget address, Governor Rendell recommended the long-term
lease of the Pennsylvania Turnpike and the imposition of the 6.17% Gross
Profits Tax on Oil Companies as his preferred method for raising $1.725
billion annually for transportation funding.
"Some of these options represent traditional funding sources and
obviously some represent new ideas. Nothing represents a silver
bullet," said Madigan. "Cost reductions and reforms at the Department of
Transportation and within the transit agencies must be undertaken as a
part of this process."
He said all four options and others should be thoroughly investigated
through legislative hearings and through vigorous public debate to find
the best possible solution to a difficult problem.
"I am committed to working with the Rendell Administration and the
Department of Transportation, and most importantly the people of
Pennsylvania to address the transportation funding shortfall," Madigan
said.
He added that the Senate Transportation Committee would begin taking
testimony on these issues in March and would continue them as necessary
to get a variety of perspectives on this issue with the ultimate goal of
building consensus on a contentious issue.
"Few responsibilities of state government have a greater impact on the
safety, economic health and social wellbeing of Pennsylvanians than does
our commitment to transportation infrastructure. Failing to meet that
responsibility will only result in a less efficient, less safe, and less
mobile and ultimately less competitive Pennsylvania economy."
CONTACT:
Craig Shuey
(717) 787-3280
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