The Pennsylvania Legislature this week approved a $2.3 billion transportation bill that includes funding for transit, highways and other infrastructure projects. The legislation was a major victory for Gov. Tom Corbett (R), who is running for reelection in 2014. The five-year spending bill targets $1.65 billion for bridge and highway repairs and $500 million for transit. The bill also allocates funds for airports, railways, ports and bike paths.
To pay for the plan, the state will raise its decades-old cap on the oil franchise tax and increase motor vehicle license, registration fees and higher fines will be imposed on driving infractions. Gov. Corbett said the oil tax hike would likely result in higher gas prices, though it's still unclear what the increase will be. Estimates based on today's prices indicate that the per-gallon cost of gasoline will rise by as much as 28 cents, phased in over five years.
AGC’s Contractors Association of Western Pennsylvania (CAWP) was a leading proponent in the effort to get the transportation package approved. AGC of America’s public affairs team worked with CAWP to organize a pre-Labor Day media event in Pittsburgh to talk about the need for greater investments in the region’s aging highways and bridges. At the event, which included a diverse group of business and labor organizations, an analysis, prepared be AGC’s Chief Economist Ken Simonson, of how many jobs the region was set to lose because of construction spending cuts was released.
Pennsylvania joins Virginia, Maryland, Wyoming, and a number of other states in increasing their transportation funding this year.
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