Mayor Kenney announced upcoming investments in Philadelphia's paving and transportation during his Fiscal Year 2024 (FY24) operating budget, capital program, and Five Year Plan proposal address.
The estimated size of the fund is $110 million in FY24. Certain revenue streams will be split out of the General Fund to create a new Transportation Fund. The FY24-28 changes are revenue and cost-neutral across the funds, but there will be a minimal reduction in the General Fund balance.
Increasing costs for paving, ADA curb ramps, and related transportation needs are putting pressure on the General Fund and the Capital budget.
While this is cost-neutral across funds now, it will enable future policy discussions to focus on trade-offs related to transportation separate from the rest of the budget.
Creating a new Fund will also allow new local and regional revenue streams for transportation to be easily allocated for transportation if implemented. It will also create dedicated streams of revenue for transportation which could help Philadelphia access federal, low-interest loan programs that require dedicated revenue streams separate from the General Fund.
The Transportation Fund will include the operating and capital costs for the following activities:
- Paving.
- Right-of-Way Management.
- Traffic signals.
- Street Lighting.
- Engineering.
- Surveys.
- School Crossing Guards.
- Public Safety Enforcement Officers.
- Traffic safety improvements
The revenue sources come from the parking tax, and locally generated revenue from other government receipts associated with transportation activities.
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Source: Phila.gov
