The Transportation Construction Industries coalition, on behalf of the highway construction industry, unveiled a comprehensive transportation funding plan this week before the Senate Transportation Committee.

In general, the plan would provide an additional $1.11 billion annually to repair the existing highway system and utilize proceeds from public-private partnerships for capacity expansion.

In keeping with the recommendations of the Pennsylvania Economy League’s transportation study released last fall, the TCI plan includes a combination of various funding sources that would grow with inflation. The sources would include lifting the current cap on the Oil Company Franchise Tax, the issuance of bonds, the tolling of I-80, increased Turnpike tolls and increased licensing and registration fees.

On the mass transit side of the issue, TCI proposes to raise $865 million per year through a combination of bonds, the state sales tax and local tax revenue options that would give voters the opportunity to determine the best approach.

The plan suggests that overlapping mobility agencies and authorities at the local level be combined and reformed to save consumers money. “We believe there are efficiencies to be gained by combining one or more transportation-related agencies at several regional levels,” said Robert Latham, APC executive vice president and spokesman for TCI. “The governing class should take the first hit, not the taxpayer”.

TCI’s plan would cap the motor license fund’s subsidy to the state police at current levels, and convert the current gasoline tax to a mile-driven tax beginning in three years. “We are also suggesting that we begin to look at replacing the gas tax with a more modern system. Several states are actively studying this, including Oregon and Minnesota”, noted Latham. The plan also would place a six-month moratorium on leasing the Turnpike until all of the implications of public-private partnerships can be understood.

The proposal appeared to be well received by committee members. Also testifying were representatives from the Pennsylvania State Association of Township Supervisors and the County Commissioners Association of Pennsylvania, who endorsed the funding plan.

To read the TCI news release, Click Here (PDF).