By Dick Miller
WE.CONNECT.DOTS: State government leaders ponder how to pay for critically-needed repairs to roads and bridges.
Gov. Tom Corbett recognized previous administrations had “kicked the can down the road,” not wanting to deal with building an adequate transportation fund. Early in 2011, he appointed a commission to recommend ways to meet this objective. In a few months they concluded, first, the need was greater than anyone imagined, and, second, every road and fuel tax, fees and motor fines should be hiked to meet the task.
For more than a year Corbett ignored the commission’s report. After all, he had been elected Governor on the promise to never raise taxes.
Corbett announces earlier this year that he had solved the problem. He asked the legislature to phase in over several years the removal of the cap on sales tax applied to the wholesale price of gasoline.
Corbett ignored two issues. First, in his mind, dunning wholesalers for a higher tax is not the same as increasing retail taxes at the pump. (Based on today’s prices, experts estimate this back door method will eventually raise retail taxes about 28 cents per gallon.) Second, his plan raises just $1.5 billion the first year. His own study commission claimed the need was about $3.5 billion and some estimated it as high as $6-7 billion!
Pennsylvania now ranks 15th highest in fuel taxes at 32.3 cents. Highest is New York at 50.6 cents, California is second at 48.7. If neither of these two states took a healthy increase over the next three years, the Keystone State could be the highest in the country. PennDOT maintains more roads and bridges than any other state highway department.
Former Governor Ed Rendell, a Democrat, somehow concluded putting the PA Turnpike into private hands could create more profit. This profit would be transferred to PennDOT to help fix other bridges and roads. He ordered the Turnpike to begin borrowing funds to hand over to PennDOT. Later, the legislature balked at leasing out the Turnpike or tolling Interstate 80, another proposal that went nowhere. Even though the Turnpike Commission raises toll rates often, the debt continues to rise.
Today, belonging to the same party as the governor, legislative leaders could not be rude. Instead, starting with Republican chair of the Senate Transportation Committee, John Rafferty, they claim Corbett’s idea is okay, but “we like ours better.”
At least two versions of proposals are afloat that would raise driver’s license fees, vehicle registration and traffic fines in addition to hiking wholesale taxes on gasoline at a slower rate. These proposals are supported by both Democrat minority transportation committee chairs of the House and Senate.
The proposals have attracted Democrat support even though all versions call for continued flat rate vehicle registration fees. For example, one version would raise four-wheel vehicle registration from $36 annually to $104 for two years.
Same fee for any size vehicle, new or very used, $500 value or $80,000.
According to American Petroleum Institute at least 21 other states have sliding scale vehicle registration fees based on varying factors from weight to age to value. In most of these states, legislators made the guy with a brand new Escalade pay a higher registration fee than the working single mother driving a beat up 10-year-old Caravan. Conversely, but equally applicable, the working single mother is not likely to afford a 50 mpg Prius Hybrid, helping overcome the pending hike in fuel taxes.
If Democrat lawmakers in Pennsylvania represent the working poor, it is a well-kept secret. Too many minority lawmakers in Harrisburg are quick to respond that they have no responsibility to provide votes for contentious legislation.
Both parties have been known to “hunker down” when the other party was in control, but Democrats are better at it.
