Based on last week’s legislative hearings, it appears that Governor Rendell’s transportation funding initiatives may still be subject to considerable change before the 2007-08 fiscal year budget is completed.

Mr. Rendell has proposed to raise an additional $965 million per year to fund bridge and highway construction by leasing the Pennsylvania Turnpike, and an additional $760 million by taxing oil company profits. He said he intends to prevent the oil company tax from being passed along to consumers.

In hearings before the appropriations committees of the Senate and House, several legislators – from both parties – expressed skepticism that consumers could be shielded from the oil company tax. Others predicted that the revenue from such a tax would not be available for some time. Still others said they doubted the tax would even be possible. Finally, some members expressed concern about turning the Turnpike over to a private operator.

The governor told online news service capitolwire.com that he would discuss an alternative if lawmakers were to bring him one.

“Regardless of what the final solution is, at least there is consensus that the funding gap is a major problem that will only get worse if it’s not addressed,” said Ron Drnevich, PHIA president. “Also, it’s important to keep in mind that the additional $965 million merely repairs the existing infrastructure and does not provide for projects that would ease the congestion on our overcrowded highway system.”

Drnevich noted that several lawmakers, including House Transportation Committee Chairman Joseph Markosek, have suggested that the ultimate solution is likely to be a combination of several measures, as first suggested in a Pennsylvania Economy League study last year. The Economy League study said public-private partnerships, increased user fees and prudent use of debt should be considered, and that the funding sources should be inflation-sensitive.