Pa. commission releases plan to boost highway funding

If passed by state legislature, move would create $2.5 billion annually

News Pittsburgh Post-Gazette July 19, 2011
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The state of Pennsylvania may finally have a solution to its highway-funding shortfall, and it does not call for a tax increase. However, motorists will be paying more at the pump.

An advisory commission formed by Gov. Tom Corbett has released a plan that should generate $2.5 billion annually over the next five years in new road and bridge construction dollars. Approximately half of the funds will be covered by eliminating a current cap on a tax imposed on fuels at the wholesale level, meaning motorists will have to pay a maximum of 4 cents more per gallon. Most of the remaining money will come from an increase in registration and driver’s license fees. Corbett’s crew also will have to account for the proposed transfer of $300 million in Pennsylvania State Police costs back to the state’s general fund.

Over the life of the measure, the commission is claiming the average Pennsylvania motorist will have to pay $2.54 more a week—or $130 a year.

The plan was passed unanimously by the commission and is expected to hit the floor of the state legislature by the fall.

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