Stay Informed!

Josephs says House to vote on dedicated transit funding plan, a long-term solution to the transportation funding crisis

HARRISBURG, June 26 -- After lengthy and detailed negotiations to accommodate mobility needs across the state, state Rep. Babette Josephs said the House is poised to vote on legislation that would set up a dedicated funding source for public transit.

Josephs, D-Phila., has been pushing for a reliable, dedicated funding source for mass transit since late 2004 when public transportation agencies first began to talk fare increases and service cuts because of severe funding problems. Although she applauded the governor's flexing of federal money to help fill the gap in 2005, she has continued to call for a dedicated funding source to help public transportation agencies and fix the state's aging transportation infrastructure.

"This proposal meets the requirements for a long-term solution. It will be a predictable and dedicated funding source that can be sustained over time and cover our varied transportation needs statewide," Josephs said.

"This dedicated fund would help ensure that everyone who uses public transit -- from the residents of Philadelphia and Pittsburgh, to the rural counties and small communities -- and those who drive on our state roads and bridges can get where they are going safely and when they need to."

Josephs said the legislation would establish a new dedicated transit trust fund in the state treasury, streamline the structure of transit funding and strengthen the state's role in the audit and performance review process of transit agencies.

The funding would come from borrowing money and paying it back through toll revenue, and an increase of the local municipality and county contribution from 13 percent to 20 percent.

Municipalities and counties would have the ability to raise their local share for transit through a menu of revenue-raising options, an ability they don't currently have. For counties, the options would include imposing a sales or hotel tax of up to 0.5 percent, a hotel room tax of up to 1 percent or a car rental tax of up to $2 per day. Municipalities would be allowed to levy an earned income tax of up to 0.5 percent and a rental car tax of up to $2 per day.

The funding for road and bridge improvements would be obtained by using the revenue received by converting Interstate 80 to a toll road.

This proposal is expected to generate $900 million annually; $400 million for highways and $500 million for transit.

The House is expected to pass the legislation later this week.