Rep. Richard A. Geist
79th District
Pennsylvania House of Representatives
(814) 946-7218
(717) 787-6419

Contact: Greg Grasa

(717) 772-3468

Raymond Smith

(717) 705-1834

FOR IMMEDIATE RELEASE

April 8, 2010

Geist Unveils Bold, New Legislative Plan to Meet

Pennsylvania's Transportation Infrastructure Needs

HARRISBURG - State Representative Rick Geist (R-Altoona), Republican Chairman of the House Transportation Committee, today unveiled a package of legislative proposals designed to address Pennsylvania's transportation infrastructure funding crisis.

The Geist Transportation Funding and Reform Package includes 11 commonsense and fiscally responsible proposals aimed at closing what has become a more than $2 billion-a-year shortfall in transportation funding in the Commonwealth. Geist unveiled his plan a day after the Federal Highway Administration (FHWA) rejected Pennsylvania's application to toll Interstate 80. The plan to toll Interstate 80 and generate additional revenue to fund Pennsylvania's transportation needs was the financial linchpin of the transportation funding plan that was enacted as Act 44 of 2007.

"We knew this day was coming ever since the day that Act 44 was enacted in July of 2007," Geist said. "I realized at that time that the proposal to toll I-80 did not meet FHWA requirements. The alternatives I am presenting today in this package are viable alternatives that have not gotten due consideration during the three years that the pending I-80 decision kept us in limbo.

"Now, it's time to get on with the business of fully funding Pennsylvania's transportation system," Geist said. "I am introducing this plan in the hopes that the General Assembly can address this critical issue in a bipartisan fashion and with a sense of urgency. We can no longer afford to stand idly by as our transportation infrastructure deteriorates."

The Geist Transportation Funding and Reform Package includes the following proposals:

Public-Private Partnership enabling legislation

For the third consecutive legislative session, Geist is sponsoring legislation that would enable Pennsylvania to enter into public-private partnerships, in which the private sector could partner with government to help rebuild the Commonwealth's transportation infrastructure. Under these contractual arrangements, in which the Commonwealth would maintain ownership control of the asset or facility, an infusion of private sector capital accelerates the maintenance, improvement and expansion of roads, bridges and other infrastructure.

Twenty-eight states already have enacted legislation that enables and provides a framework for transportation-oriented P3s.

Motor License Fund phase-out of State Police Funding

Currently, roughly 75 percent of the Pennsylvania State Police operating budget is funded out of the Motor License Fund. In the 2010-11 state budget proposal, that amounts to $533 million. This is money that should be dedicated to its intended purpose, which is the maintenance and improvement of highways and bridges. Geist has long contended that funding for the State Police should be appropriated entirely from the General Fund, which currently appropriates only about 25 percent of the PSP operating budget.

Proposed legislation would phase out over 10 years the Motor License Fund expenditures to the Pennsylvania State Police, shifting those appropriations to the General Fund in increments of roughly $50 million per year. Ultimately, this will free up a half-billion dollars in the Motor License Fund for bridges and highways.

Design-Build

Design-build is a construction project delivery system where the design and construction aspects are contracted for with a single entity known as the design-builder or design-build contractor. The design-build system minimizes the project risk for the Commonwealth and improves the project delivery time by overlapping the design phase and construction phase of a project.

This legislation would allow PennDOT to contract with a private firm to design and build a project based on requirements established by PennDOT. After the project is completed, PennDOT would operate and maintain the facility. The bill also would permit municipalities to create design-build pavement management systems in order to manage a city's or borough's entire road system. Such a contract would be adjusted annually for available revenues.

Tolling Interstate 95

Proposed legislation would authorize Pennsylvania to apply to the Federal Highway Administration (FHWA) for permission to toll Interstate 95 under the Interstate System Reconstruction and Rehabilitation Pilot Program (ISRRPP). Pennsylvania had applied under this same pilot program for permission to toll Interstate 80, but was rejected because the I-80 proposal did not meet the parameters of the pilot program, which requires that all revenue generated by tolling an Interstate must be put back into the rehabilitation of that Interstate.

Geist is convinced that a proposal to toll the 50 miles of I-95 that run through Pennsylvania meets those program requirements because it is an Interstate in desperate need of rehabilitation. The total cost of a complete rehabilitation of the entire stretch of I-95 through Pennsylvania is estimated at $20 billion. Putting that into perspective, PennDOT's total annual construction budget is $1.8 billion. Given those figures, it is clear that I-95 is the perfect candidate for ISRRP.

Extend the current level of Pennsylvania Turnpike Commission annual payments to PennDOT for three more years

The intent of this legislation is to avoid a precipitous drop-off in projected funding for the Commonwealth's roads, bridges and mass transit systems, and gives a new governor and General Assembly the ability to come to grips with the reality that Interstate 80 will not be the cash cow that many had believed it would be.

The bill proposes to increase by 2.5 percent per year for the next four fiscal years the current level of annual payment that the Turnpike Commission makes to PennDOT. This measure would avert drastic funding cuts to mass transit, which has come to rely on the funding promised by Act 44, and would buy some valuable time for the Legislature to fully meet the critical challenge of funding Pennsylvania's transportation infrastructure.

This could cause the Turnpike to make some changes to meet the obligation, but they have been touting their excellent financial condition for the last three years and their ability to meet the payments to date. They may have to make some decisions to cut the bloated management and consultant contracts that have been part of the Turnpike operation for the last seven years.

Add two Turnpike Commissioners to be Appointed by the House of Representatives Majority Leader and Minority Leader

In light of the recent troubled times of the PA Turnpike Commission, and its commissioners, Geist feels it is imperative that the House of Representative has a presence on the commission in order to change the way business is currently done.

This legislation will require two additional commissioners to be appointed, one by the House Majority Leader and one by the House Minority Leader. There must be a greater degree of accountability for the spending of toll dollars and the whole General Assembly must have a seat at the table to protect the public's interest.

Pilot Program: Contract out maintenance of highways

The goal of the legislation is for PennDOT to bid out operations of an entire maintenance district or perhaps the maintenance of an entire interstate highway.

As one of the state's largest agencies, PennDOT obviously has many opportunities to involve private contracts and already does quite a bit of privatization because PennDOT does not have the capacity to do all engineering and construction on its own. Generally, all new construction is contracted out. Many maintenance projects are contracted, but there are still a fair amount of paving and maintenance jobs being carried out by PennDOT personnel.

PennDOT could certainly do more in the area of privatizing its services. As of today, only Florida and Virginia have been aggressive when it comes to actually having private firms provide pavement management.

Adjust Percentage and Ceiling of the Oil Company Franchise Tax

The OCFT was first implemented in 1981 and from its inception it was designed with the intent to have a tax that grows with the price of fuel. However, the rates have been at the ceiling since 2006. Raising the millage rate or adjusting the ceiling are very viable near-term options, according to the Pennsylvania State Transportation Advisory Committee. This proposal is much more palatable than a gas tax increase at the pump.

Increase Local Transit Match to 25 Percent

The governor's Transportation Funding and Reform Commission in its 2006 report recommended that the General Assembly require the local transit match for additional funding to be 25 percent.

Currently, the state provides 87 percent of the funding for mass transit statewide, or roughly $853 million, which ranks fourth in the nation in the amount of state subsidies directed to mass transit. Meanwhile, the average local share hovers around 13 percent, which ranks Pennsylvania 16^th in the nation as far as local share contributed toward mass transit. Nationally, the average breakdown is 65 state/35 local.

Add Local Tax Options (sale - realty transfer)

The Transportation Funding and Reform Commission also recommended that the General Assembly enact legislation to enable counties and municipalities to raise revenues needed for public transit. This money could be raised by a local sales tax, an earned income tax or a local realty transfer tax.

House Resolution in support of further study of a Vehicle Miles Traveled tax.

This resolution will urge the General Assembly to pursue study of the concept of taxing motorists based on vehicle miles traveled. While implementing a switch to a VMT tax remains a long-term proposition, it has been touted at the federal level as a long-term alternative. A pilot program conducted in Oregon has illustrated that a VMT approach can be a viable alternative in the future.

Geist said he will be formally introducing all of these proposals in time for the special legislative session on transportation that Gov. Ed Rendell said he will ask the Legislature to convene as soon as possible.

"I support the governor's call for a special session on transportation," Geist said. "Anything to put the focus on the imminent crisis we're facing, I'll support.

"This is no time for the use of halfway measures," he said. "We need to stop the trend of trying to pound a square peg into a round hole, and build public policy that will stand the test of time, weather a changing economy, and provide our residents with a system that they can take pride in, and that will become a national model. The challenges we are faced with demand bold action and bold thinking, and that's what is in this legislative package."

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