For Immediate Release
July 19, 2007
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Madigan – Transportation Plan Provides
$500 Million for Highways

The Legislature this week approved and sent to the governor a comprehensive transportation plan that will provide $500 million annually for highway and bridge maintenance work and a dedicated fund for public transportation, according to Senate Transportation Committee Chairman Roger Madigan (R-Bradford).

"The allocated funds are essential and will be of assistance, but still falls short of what the Commonwealth needs to keep up with the maintenance needs of our highway system according to the determinations made by PENNDOT and the Governor's transportation reform commission," Madigan said. "House Bill 1590 represents the best possible solution that could be negotiated in a no new taxes environment to deal with a problem that faces every Pennsylvanian."

Under provisions of HB 1590, beginning in 2010 the $500 million in funding for roads, bridges and transit will increase annually by approximately 2.5 percent annually for an average of $531,800,000 over the next 10 years.   

An additional $35 million will go to municipalities and counties for local highway improvements.

"This money will help to address the significant backlog of highway and bridge improvements needed to maintain our existing infrastructure," Senator Madigan said.  "However, it needs to be understood that we are providing only half of the amount that the transportation commission recommended." Achieving that goal would have required a 12 cent per gallon fuel tax increase. 

The plan also includes several hundred million in funding for mass transit, imposes a new performance based distribution formula and requirements that agencies conduct performance audits and study privatization opportunities.

"We were able to add these additional dollars to our transportation needs without increasing taxes on oil and gas as proposed by Governor Rendell," Senator Madigan said.  "By tolling Interstate 80 we are making sure those who use our infrastructure – particularly those from out of state – pay their fair share.  Such an approach is a much better alternative than dramatically raising the gas tax on all motorists."  "My constituents overwhelmingly opposed both the Oil Profits Tax and leasing the Turnpike to a private company." 

In February, Governor Rendell proposed raising over $1.8 billion in funding for highways and mass transit though privatization of the Pennsylvania Turnpike and by increasing the oil and stock and franchise tax by over 6 percent.  The provisions of HB 1590 provide half of the funding requested by the Governor, while avoiding a tax increase and deferring the privatization proposal.

CONTACT:

Craig Shuey
717-787-3280