FUNDING: Pa. governor has a plan to generate $1.9 billion in additional road/bridge funds annually

Removing a statutory cap on oil company franchise tax would release the new funds, but move must be approved by the state legislature

Funding News Associated Press January 17, 2013
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After months of speculation, Pa. Gov. Tom Corbett is finally going to reveal his remedy for the state’s transportation funding problem.

 

According to the Associated Press, Corbett will unveil a strategy that will pump almost $2 billion a year into the road and bridge program. The main cog in this money machine is the statutory cap on the oil company franchise tax. Corbett wants to remove it, which requires legislative approval. The per-gallon tax is applied to an average wholesale price of $1.25, and lifting the cap could produce $1.9 billion a year.

 

Corbett’s administration refused to confirm or deny reports of the new plan, but Pa. Senate Transportation Committee Chairman John Rafferty said officials have been involved in negotiations on drafting legislation that does call for scraping the gas cap. Corbett is expected to hold a press conference on Jan. 24 to cover what he plans on doing in an attempt to generate more transportation funding moving forward.

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