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Time for a new vision for state transportation policy

PA Chamber outlines potential solutions to Pa.’s funding needs

The PA Chamber told a state Senate panel that it’s time for a new vision for transportation policy in the Commonwealth.

Pennsylvania faces a $476 funding shortfall as a result of the federal government’s recent rejection of tolling I-80, which was a key provision of Act 44 of 2008. The federal government’s decision has forced lawmakers back to the drawing board to find funding options to address highway/bridge maintenance and repair, and other transportation infrastructure needs.

Testifying before the Senate Transportation Committee on Wednesday, July 21, PA Chamber Government Affairs Director Stephanie Catarino Wissman stressed that having a modern, safe and efficient transportation system is necessary for the free flow of commerce and the mobility of residents of and visitors to the Commonwealth.

“Providing adequate funding for transportation is an essential function of government, and failing to properly address the Commonwealth’s aging infrastructure will have significant economic and quality-of-life implications,” she said.

Wissman said p rudence and necessity dictate that Pennsylvania must consider a variety of possibilities for funding transportation needs.

PA Chamber member companies support a number of funding options, including a reasonable increase in the Motor Fuels tax, which represents a true user fee and would provide a dedicated funding source for infrastructure projects. Due to increased federal fuel efficiency requirements, revenues from the tax have declined from needed levels.

Other concepts favored by the PA Chamber include public-private partnerships, the tolling of newly created highways and strategic borrowing.

One funding option being entertained by Gov. Ed Rendell that does not have PA Chamber backing is his proposed Oil Company Gross Profits Tax- the second attempt by the administration to enact such a tax. The PA Chamber opposes singling out individual industries for taxation, which in this case would include small businesses that deliver home heating oil.

The PA Chamber recognizes that lawmakers face no small task in finding viable funding sources for Pennsylvania’s transportation system at a time when the Commonwealth faces so many other significant fiscal challenges. The PA Chamber is prepared to work with elected officials to find common ground among the many ideas that have been put forth in order to ensure a reliable and efficient transportation system.

   
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