Pa. Gubernatorial Candidates: What They Say About Transportation Funding and Policy

 

Here’s what PenTrans asked of all the candidates:

 

In the closing months of the current legislative session, we are faced with drastic cuts to road, bridge and transit budgets – threatening the state’s already uncertain economic recovery.  We are eager to learn how you would address transportation funding and related policy issues if you are elected.

 

PenTrans sent a questionnaire to Pennsylvania’s six major gubernatorial candidates: Tom Corbett, Joe Hoeffel, Dan Onorato, Sam Rohrer, Jack Wagner and Anthony Williams.

 

Responses varied.

 

Joe Hoeffel responded completely to the PenTrans Questionnaire and submitted a position paper, "Strengthening Pennsylvania's Transportation Infrastructure."

 

Anthony Williams responded completely to the PenTrans Questionnaire.

 

Dan Onorato’s response was a position paper that deals more broadly with issues of strong sustainable communities, The Onorato Plan for Strong Communities - Promoting Smart and Sustainable Growth.

 

Jack Wagner gave some responses and submitted a Reform Proposal for Infrastructure.

 

Tom Corbett did not respond.

 

Sam Rohrer did not respond.

 

 

Joe Hoeffel responses to PenTrans questionnaire:

 

Please rate:

1. Strongly approve 2. Approve 3. Neutral 4. Disapprove 5. Strongly disapprove.

 

a.    An index/increase in the state gas tax q 1

b.    A tax on big box retail outlets q 3

c.    A sales tax on cigars and smokeless tobacco q 1

d.    Leasing the Pennsylvania Turnpike q 4

e.    Regional taxing authority for funding  transportation improvements q 2

f.     Increasing state dept to funding transportation improvements q 1

g.    Parking tax q 3

h.    More public private partnership opportunities q 1

i.      Tolling existing “free” highways q 1

j.     Tolling bridges on I-95 q 3

k.    Increase/expand vehicle registration fees q 1

l.      Raise the oil company franchise tax q 2

m.  Remove PA State Police funding from Motor License Fund q 4

n.    Marcellus Shale Extraction Fee q 1

o.    Other taxes and/or fees (please specify)

 

Do you think that a significant portion of the transportation budget could be met by cuts in spending (please specify the cuts you would recommend)?

 

My transportation plan will double revenue to the state to more than double construction work to fix roads and bridges, increase traffic capacity and expand public transportation.

I have proposed funding transportation through diverse, sustainable and dedicated sources based largely on usage. Those who use the roads more should pay more. I support changing vehicle registration fees so that while the first vehicle registration per household doesn't change, additional vehicles would have a variable fee (where more expensive vehicles would cost more to register, but greater fuel efficiency would give a discount). I would establish periodic increases to the gas tax and I would allocate that revenue specifically to highway funding. And I will maximize all available federal funding (especially that federal funding which becomes available through matching programs).

 

The $1.7 billion recommended by Transportation Funding and Reform Commission was for system preservation only.  What are your thoughts on funding capacity-adding projects to address the need of urban areas to provide equitable quality of life.

 

I support funding capacity-adding projects for both highways and public transit systems.

 

Would you favor pursuing public-private partnership (PPP) alternatives? Would you revisit the option to lease facilities such as the Pennsylvania Turnpike? How would you quantify the benefit to the Commonwealth resulting from any Ppp’s?

 

When businesses and commercial centers locate in remote or rural places that require new infrastructure, those costs should be shared. We shouldn't allow big-box stores, shopping center developers, and business campuses to buy cheap land along rural or suburban highways and leave us to foot the bill for expanding highway capacity to their development.

 

I support public-private partnerships for investment in construction of expanded road capacity, new interchanges or intersections, and public transportation service.

 

I will also encourage new businesses, commercial centers, and residential developments to be located near existing highway interchanges and intersections. This makes better use of existing infrastructure and protects our precious open spaces and environment.

 

What legislative changes would you support to fund transportation improvements such as value capture, private equity in transportation financing, local option sales taxes?

 

I believe revenue for transportation infrastructure should come from transportation-related sources. I will fund transportation infrastructure through diverse sustainable and dedicated sources based largely on usage.

 

I support changing the way our vehicle registration fees work. Under my plan, annual registration of each household's first vehicle would be unaffected. Additional vehicles would be subject to increased registration fees based on criteria such as the number of vehicles per household and the purchase price or gas mileage of each vehicle.

 

I will work to establish periodic increases to the gas tax, strictly allocated to highway funding, so that our ability to fund necessary maintenance and construction projects increases over the years. I will explore the viability of shifting from a gas tax to a mileage-based user fee, as technology emerges.

 

I will ensure that Pennsylvania maximizes all available federal funding programs and grants.

 

Finally, I am disappointed that Governor Rendell did not follow the instructions of the FHA in his latest application to toll I-80. The FHA has told Pennsylvania (on numerous occasions) that we must use the money raised from tolls for I-80 projects. And we need to give I-80 a dedicated source of funding. Interstate trucking is tearing it up, making travel unpleasant for residents and commuters. And right now, those residents and commuters are the ones paying for I-80. That's not right. I believe following the FHA's guidelines is possible in a future application.

Your additional comments or alternative responses:

 

I have attached a copy of my policy paper "Strengthening Pennsylvania's Transportation Infrastructure", which covers these and other transportation issues in greater depth. You can also find the paper online:

 

 

Responses of Anthony Hardy Williams

 

Question (1)

 

  1. In index to increase the state gas tax. 

 

I am skeptical that such a tax would pass the legislature, having been considered and rejected before.  A gas tax increase is not appropriate during a recession.  In addition, the increasing efficiency of automobiles has resulted in lower gas usage. 

 

  1. A tax on big-box retail outlets. 

 

I do not think such a targeted tax would satisfy Pennsylvania’s uniformity clause.  I would not support such a targeted tax.

 

  1. A sales tax on cigars and smokeless tobacco. 

 

While I support such a tax, it is not likely that the revenue created from this tax will be allocated to transportation needs, but likely will be directed to expanded health care services or reducing the projected $750 million budgetary shortfall.

 

  1. Leasing the Turnpike. 

 

The Pennsylvania Turnpike is a revenue generator, not only providing enough funds to support maintenance of the turnpike, but also produces revenue for other statewide transportation needs.  The leasing of the turnpike already has been rejected by the legislature as providing little to no financial value. 

 

  1. Regional taxing authority for transportation needs. 

 

I would consider supporting, depending on the nature of the proposal, authorizing regional taxing authority for transportation needs, including mass transit.

 

  1. Increasing state funding of transportation improvements. 

 

I think we all can agree that there should be increase state financial support for transportation improvements, but the question is how to find the revenue needed in the middle of a recession and state budgetary shortfall of at least $750 million.  The challenge will be to maximize federal funding support and state budgetary priorities to ensure transportation needs are adequately addressed.  This will be a priority for the next governor.

 

  1. Parking tax. 

 

I am skeptical concerning the political willingness to support parking taxes.  It certainly hasn’t been welcomed in communities like Pittsburgh. The concern that I would have is levying any type of tax that would make it more difficult for families to make ends meet.  While I recognize the desire to reduce vehicular traffic in urban centers, there are many areas of the Commonwealth in which this is not a problem and any form of parking tax would make it more expensive for employees to go to work.  In addition, such a tax could force more businesses to more to suburban areas – thereby increasing pressure on open spaces.  The recent decision of the Patriot-News to completely move their operations, news room and editorial offices outside of Harrisburg to a neighboring suburb illustrates the trend of businesses to move closer to their workforce and to avoid the higher business costs of urban centers.  Parking taxes would only exacerbate this problem.

 

  1. Public Private Partnerships. 

 

I strongly support exploring the greater use of public-private partnerships to maximize the ability of the Commonwealth to address road construction and maintenance needs.  While I do not support the leasing or the transfer of ownership of state assets, I do support other options that would facilitate access to new capital.

 

  1. Tolling existing highways. 

 

I believe that this is a necessary consideration for the legislature.  In order to ensure adequate funding for highway expansion and maintenance, it will be necessary to create a dedicated revenue stream to support the most heavily used highways in the Commonwealth.  For generations, drivers in the southern portion of the Commonwealth have had to pay to drive the turnpike to Philadelphia, Harrisburg and Pittsburgh.  If the Commonwealth is to maintain its more rural roads, provide for mass transit and maintain other roadways, it will be necessary to consider tolling certain highways to ensure their maintenance independently from General Fund revenue.

 

  1. Tolling bridges on I-95. 

 

I would consider this option, but would need to study its impact prior to making any commitment of support.

 

  1. Increase / expansion of vehicle registration fees. 

 

I agree that this is an option that will have to be considered as a near term solution to the transportation funding problem.

 

  1. Raise the oil company franchise tax. 

 

Again, I agree that this is an option that will have to be considered as a near term solution to the transportation funding problem.

 

  1. Remove the Pa State Police from the Motor License Fund. 

 

I would support this initiative, though it should be recognized, it simply moves a funding need from one source to another, as such it does not resolve the overall state funding shortfall problem.

 

  1. Marcellus Shale Extraction Fee.

 

As outlined in greater detail in my policy paper on environmental issues, I do support the imposition of an extraction fee.  However, I am not sure why this option is included in this questionnaire because no existing proposal contemplates usage of any revenue derived from an extraction fee for transportation needs.  I think it would be more appropriate for revenue from the fee to be used for environmentally spending initiatives.

 

Question (2)

 

While I agree that some transportation funding needs may be met by program cuts and management efficiencies, I recognize that transportation funding needs cannot be met by cuts alone.  New revenue sources will have to be identified and different program approaches, such as public-private partnerships will have to be considered.  Simply stated, we cannot cut ourselves out of this problem alone.

 

Question (3)

 

While I support funding capacity-adding projects to address urban area needs, as your first survey question suggests, existing transportation needs will be difficult to meet in the current economic environment.  I am not optimistic that new transportation projects will be initiated unless there is a new political willingness on the part of the legislature to assume bond debt to support these new projects.

 

Question (4)

 

I would support new public-private partnerships as I have responded in Question 1, but I do not favor the leasing of the Pennsylvania Turnpike – a revenue generating asset.  Tolling new roads, privatizing road maintenance needs and investigating other options are appropriate alternatives to leasing or transfer of ownership of state roadways.

 

Question (5)

 

As question (1) thoroughly addressed, I support considering almost all other options listed in this question and the supporting materials.  I am guided by a strong reluctance to support any board-based tax increase (such as sales tax expansion or personal income tax increases) or the transfer of Commonwealth assets, in particular revenue generating assets. 

 

 

Response of JACK WAGNER

 

One of my priorities as Governor will be to maintain vital government services without raising taxes.  I believe that increasing taxes or imposing new taxes is like looking for the pot of gold at the wrong end of the rainbow.  The pot of gold is in the reform of state spending, which is what I have focused on as Auditor General for the last five years.  The taxpayers want a government that puts their needs first and provides quality services in a cost-effective way, and that is exactly what I intend to deliver as Governor. 

 

With regard to the new Marcellus Shale energy resources, I do support a reasonable severance tax, set at perhaps the average of other states’ tax rates, with a portion of the revenues dedicated to environmental restoration, preservation, enforcement, and oversight at the state and local levels, including a new Growing Greener program.  Pennsylvania cannot impose the highest tax in the country or else we will kill the new industry, which will provide tens of thousands of high quality, family-sustaining jobs to our communities and a clean fuel as a better alternative to oil.

 

1.    Do you think that a significant portion of the transportation budget could be met by cuts in spending (please specify the cuts you would recommend)?

 

The best preparation for addressing our many fiscal challenges is to serve as Auditor General.  I know firsthand where the waste, fraud, and abuse are in government programs from the thousands of audits that I have conducted.  I will use my experience to reduce the cost of state government and direct the resulting sustainable cost savings to other areas, such as addressing our state’s many expensive transportation needs.

 

We must stop wasting limited infrastructure funds on bad projects, such as $600 million for a one-mile tunnel under the river in Allegheny County, which will contribute nothing to economic growth or private sector employment and which will be subsidized for its entire useful life so the costs keep coming.  We must also stop fraud; it has been reported that federal and state law enforcement agencies are investigating the Turnpike Commission’s contracts. 

 

Finally, we must stop sending funds to Wall Street through risky swap financing deals.  My special investigation last year found that 107 Pennsylvania school districts and 86 local governments had financed $14.9 billion in debt tied to swaps.  Our follow-up efforts have identified millions of additional dollars potentially at risk at the Pennsylvania Turnpike Commission ($145 million), SEPTA ($52 million), the Delaware River Port Authority ($200 million, with $65 million already paid out), and other public entities.  As an ex-officio board member of the DRPA who joined the board after it entered into swaps, I am proud of having passed a resolution requiring the agency to stop entering into any more swaps and to begin unwinding out of its current swaps.  Swaps have no place in public finance and must be eliminated in order to protect the taxpayers.

 

2.    The $1.7 billion recommended by Transportation Funding and Reform Commission was for system preservation only.  What are your thoughts on funding capacity-adding projects to address the need of urban areas to provide equitable quality of life?

 

As Governor, I will work with stakeholders to select and invest in capacity-adding projects in a fiscally responsible way.  I would consider public-private partnerships for capacity-adding projects.

 

3.    Would you favor pursuing public-private partnership (PPP) alternatives? Would you revisit the option to lease facilities such as the Pennsylvania Turnpike? How would you quantify the benefit to the Commonwealth resulting from any Ppp’s?

 

I oppose the sale or long-term lease of state assets for a short-term financial gain.  As Governor, I will challenge the Pennsylvania Turnpike to become one of the better highways in America.  I will also make the Pennsylvania Turnpike the first multi-fuel highway in the country, with the infrastructure to support vehicles powered by electricity, natural gas, propane, gasoline, diesel, and other fuels.  This will help us get off oil and, at the same time, stimulate the green economy.  I will partner with the governors of our neighboring states in this important effort.  Finally, I will use the Turnpike to market the many positive attractions in Pennsylvania, such as the National Constitution Center, Hershey park, and the Gettysburg battlefields.  By marketing Pennsylvania, we will generate additional ridership and, therefore, additional revenues.

 

4.    What legislative changes would you support to fund transportation improvements such as value capture, private equity in transportation financing, local option sales taxes?

 

I would be interested in learning more about these issues.  In addition, see my answer to Question #2 above.

 

5.    Your additional comments or alternative responses:

 

Attached please find a copy of my recently released reform proposal for infrastructure.

 

 

Responses of Dan Onorato

 

As its name implies Dan Onorato’s position paper, The Onorato Plan for Strong Communities - Promoting Smart and Sustainable Growth, deals with the broader issues of sustainable communities. Here are excerpts relating specifically to transportation.

 

Onorato excerpts

 

Investing in job-creating sustainable infrastructure

Infrastructure is essential to connecting Pennsylvanians, to improving safety and quality of life, and to enabling businesses and communities to thrive. Several studies – including by the Pennsylvania Economy League and the Transportation Funding & Reform Commission – have highlighted the magnitude of the problem Pennsylvania faces and the urgent need for solutions.

 

Dan Onorato will explore all options necessary to improve Pennsylvania’s infrastructure, such as eliminating waste, public-private partnerships and dedicated funding. As Governor, Onorato will:

 

Increase investment in Pennsylvania infrastructure.

Pennsylvania businesses and residents depend on reliable and efficient infrastructure, and the viability of the state’s communities is at risk if infrastructure needs remain unmet. Onorato will promote investment in:

 

o highways and roads;

o bridges;

o public transportation;

o railways and rail freight;

o drinking water and waste water systems;

o dams;

o ports; and

o aviation.

 

Advance smart transportation policy.

 

Onorato will improve Pennsylvania’s infrastructure in a manner that encourages smart growth. He supports a “fix-it-first” policy and will pursue programs like the Pennsylvania Community Transportation Initiative that focus on established communities. Onorato will also encourage and provide incentives for transit-oriented development and freight-oriented development and will emphasize the importance of public transportation and of transportation system connectivity and capacity. In addition, Onorato will encourage communities to consider “complete streets” that are walkable and bicycle-friendly and that promote safe travel for all modes of transportation.

 

Encourage innovation and attract private-sector investment.

 

Onorato will ensure the efficient investment of public infrastructure funding and he will promote public-private partnerships that enable the state to complete projects that would otherwise be unfeasible.

 

Advocate for appropriate federal funding.

 

Onorato will champion Pennsylvania’s infrastructure needs in Washington, D.C. He will be an advocate for a greater level of federal resources to achieve regional priorities, including for aging highways and to improve high-speed rail.

 

• Expand the role of infrastructure in the state’s economic development strategy.

 

Onorato will link marketing of Pennsylvania ports, rail freight and other infrastructure into business attraction and incentive packages in order to drive down logistic costs, make the state more competitive and take advantage of the Commonwealth’s location advantage.