Category: News

Legislators are now studying whether to allow private investment in the highway system due to funding gaps at PennDOT.  Debates at the Transportation Funding and Reform Commission hearings that have taken place around the state on the idea. It is a veritable pay now or pay later scenario playing out.

Even the “father” of Interstate 99, former US Representative Bud Shuster, chimed in by saying “billions and billions of dollars can be raised by public-private partnerships” on transportation projects.  One of which he cited is the Mon-Fayette Expressway, which is $2 billion short of funding.

The commission is due to issue a report on November 15 recommending new taxes or increases in existing ones. Ones targeted for increases are the 6% sales tax, 31.5¢/gallon gasoline tax, or the $36/year vehicle registration fee.  The new revenue would go towards improving highways and the 47% structurally deficient bridges across the Commonwealth. Money would also go towards PAT in Pittsburgh and SEPTA in Philadelphia.

I am for the private investment if it means improving the highway system, but not for the taxes.  The base state sales tax has been 6% since the early 1970s, and doesn’t cover food nor clothing! The gasoline tax is already one of the highest in the country. Even though gas prices are low as of this blog entry, it doesn’t mean prices will continue to stay low.  The vehicle registration fee should be on a scale depending on the weight of the vehicle. It is similar to how the Turnpike Commission calculates tolls.  The more your vehicle weighs, the more your registration. That seems only fair.  An SUV puts a greater strain on the highways, due to its weight, than a motorcycle.

Maybe the judges who repealed the legislature’s pay raise, but upheld their own pay raise, will donate a portion back to PennDOT, so we don’t have to worry.  Although, without improvements, they’ll be earning those raises hearing lawsuits from families of those who died in bridge collapses.

Lawmakers Study Private Investment For Roads – Pittsburgh Post-Gazette

A state senator from Monroeville has proposed eliminating the 31.2¢/gallon gasoline tax to give drivers a break at the pump.  On the surface, that looks like a good idea.  The theory is that loosing that 31¢ would drop the average price to $2.65, but what looks good on paper, doesn’t always translate in reality.

The gasoline tax is what keeps our highways and byways from falling apart.  You can make your own jokes here, I’ll wait.

Done?  OK.  PennDOT already has their back against a wall with loosing Federal highway money to mass transit across the state.  Numerous projects have been shelved, such as the Central Susquehanna Valley Thruway which will carry US 15 around Shamokin Dam, while others have been put on the “chopping block” outright due to this funding situation. Eliminating the gasoline tax would be yet another blow to an already weakened budget.

Prices wouldn’t necessarily go down as a result. The oil companies would pocket that extra money for themselves, more than likely.

The problems are speculation and the oil companies.  We are at a point where a butterfly sneezes on a pipeline, and the price skyrockets, but afterwards it slowly falls.  Why?  It’s not as if God handed Moses a third tablet with oil prices up on the mount.  It seems to me that gasoline is the only thing in this world that appreciates with value, which makes me want to siphon my tank and sell it back to the station at the higher rate. I want to get in on this deal too.

The oil companies are pocketing way too much.  I’m an ExxonMobil stockholder, and before you call me “money bags,” I’ll let you in on something.  The dividend per stock share is only 27¢, but the way they’ve been raking in money hand over fist, I and all other stockholders should be retired and living the good life.

PennDOT: Suspending Gas Tax Would Delay Road Projects Without Helping Drivers – Pittsburgh Post-Gazette