Posted on 11/15/2006 3:37:41 AM PST by Dane
Gas tax to cover roads, rails? By MARTHA RAFFAELE Associated Press Writer Article Launched:11/14/2006 09:43:19 AM EST
HARRISBURG — Getting a driver's license, registering a vehicle, and filling the gas tank would all become more expensive for Pennsylvania motorists under a proposal released Monday traise roughly $1.7 billion for improving the state's highways and bridges and funding its cash-strapped mass-transit systems.
A transportation study commission is calling for increasing the 19-cents-per-gallon oil franchise tax by 11.5 cents per gallon and raising various motor vehicle registration and license fees tgenerate an additional $900 million for highway and bridge projects. The oil franchise tax is levied on the wholesale price of gasoline and passed on tconsumers as part of the gasoline tax.
The report alscalls for raising $65 million for bridges and highways owned by counties and municipalities through an additional one-cent increase in the oil franchise tax.
Transportation Secretary Allen D. Biehler said at a news conference Monday that the commission appointed by Democratic Gov. Ed Rendell struggled with the task of setting a price tag for new transportation funding and determining how tpay for it.
"It is a tough, a very tough, issue for all of us, but I don't know of any other place tstart, except (to) start from a point of well-founded pieces of information that would help people understand the circumstances," Biehler said.
The commission is alsrecommending a combination of state and local taxes traise an additional $760 million for mass transit.
The state would raise its $576 million share by raising the 1 percent realty-transfer tax by less than one percentage point; counties and municipalities would raise their shares by imposing local sales, earned-income or realty-transfer taxes.
The proposed oil franchise tax and motor-vehicle fee increases would cost $7 a month combined for the average driver, and the proposed realty-transfer tax increase would add about $5 a month ta 30-year, $150,000 mortgage for homeowners, Biehler said.
Additionally, the commission said spending on highways and mass transit could be reduced by $180 million through steps such as using public-private partnerships for highway construction and financing, streamlining the highway construction process, and restructuring mass-transit routes.
It was not immediately clear Monday whether Rendell or state lawmakers would endorse the report's recommendations. Rendell spokesman Chuck Ardsaid the governor will review the report and try trespond tit quickly.
"The governor has treview both the commission's perspective on the problem, consider that, and then consider their recommended response," Ardsaid. "We can't just focus on what the response is."
Senate Transportation Committee Chairman Roger A. Madigan applauded the commission's recommendations for cost savings in a memtfellow senators and senators-elect. But he said lawmakers would have tdeliberate carefully over the recommended tax and fee increases.
"We must fully explore how we can improve our transportation network without increasing revenues before we seek tincrease the financial burden upon our citizens," said Madigan, R-Bradford.
"A thoughtful debate should occur over the next six months taid us in developing the best possible proposal tbalance these issues with action in tandem with the adoption of the É 2007-2008 budget."
Rendell established the commission in February 2005 after he and the Legislature could not agree on financial support for transit agencies facing cash shortages. At the same time, Rendell alsrerouted some of Pennsylvania's federal highway funding tkeep transit agencies afloat until 2007.
Without a public-funding increase, the state's twlargest mass transit systems, the Southeastern Pennsylvania Transportation Authority and the Port Authority of Allegheny County, will have taddress a combined $81 million deficit in the first six months of 2007.
WHAT'S SUGGESTED:
Key recommendations of the Transportation Funding and Reform Commission:
HIGHWAYS AND BRIDGES:
Raise $900 million for state-owned highways and bridges by increasing oil franchise tax on the wholesale price of gasoline by 11.5 cents per gallon and increasing motor vehicle registration and license fees.
Raise $65 million for highways and bridges owned by counties and municipalities with one-cent increase in oil franchise tax.
Save $120 million through measures such as streamlined project planning, better maintenance and preservation, and linking land use and transportation.
MASS TRANSIT:
Raise $760 million for mass transit, with 75 percent from the state and 25 percent from counties and municipalities.
Increase realty-transfer tax from 1 percent t1.89 percent traise state's share.
Enable counties and municipalities traise their share through a 0.25 percent local sales tax, 0.20 percent earned-income tax, or 0.5 percent realty-transfer tax.
Replace $589 million in current mass-transit revenue sources with existing revenue from state sales or personal-income tax.
Save $60 million through measures such as restructuring or eliminating routes with low ridership, reducing labor and management costs, encouraging the use of private contractors and revising fare policies.
Ease mass-transit tax burden by exploring public-private partnerships and finance capital projects through borrowing.
Distribute subsidies for operating costs based on formula using passengers and vehicle hours.
Give state transportation officials authority treview transit-agency performance.
Source: Pennsylvania Department of Transportation
I live in Pa., and we are getting what the stupid voters voted for. Tax, Tax and more tax. Just think of what the dumb-o-crats are going to do on the national level.
... and the proposed realty-transfer tax increase would add about $5 a month ta 30-year, $150,000 mortgage for homeowners, Biehler said....
They could have come out and said it was a tax of $1800, but instead they spread it out across 30 years to come up with the $5/mo figure.
Also...
Raise $760 million for mass transit, with 75 percent from the state and 25 percent from counties and municipalities.
How about either raise the prices for mass transit so that it pays for itself, or just eliminate it altogether?
The following is code for converting previously "free" roads to tolls and letting a private company run it. If you're unlucky, they could be thinking of a huge boondoggle for the profit of foreign companies like our Gov. Goodhair in Texas is trying to do with the TTC.
Ease mass-transit tax burden by exploring public-private partnerships and finance capital projects through borrowing.
Lord knows, the roads in Pennsylvania need help. Truckers agree they are the worst in the country. I'd be all for the increases if I had any reason at all to believe that the money would actually go where it is needed.
At least Ohio doesn't have the vehicle inspection and emission scam that Pa. has, plus gas was .15/gal less. Hell with Pa. I may come back if things change, but with the second largest senior citizen population ( quote Rush ), it might be a few years.
Time to tweak my tagline.
not only am I crying here in the wilderness, I'm lost here in the wilderness, lol.
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