Governor Rendell: Hitting the Road for Pennsylvania's Future

[Penndems]

From The Guv's weekly E-mail:

Transportation Bus Tour to Visit Seven Key Regions

Pennsylvania's transportation dilemma — decades in the making — demands an immediate and long-term solution. That's why I will visit seven key regions of the state next week to discuss our revolutionary plan to solve the broad challenges facing our transportation network.

During my administration, Pennsylvania has spent more on repairing roads and bridges than at any time in state history — but more must be done. Over the past two years, an astounding 36 percent increase in construction costs has hampered the Department of Transportation's ability to improve pavements and address a backlog of bridge projects.

In addition, the lack of a dedicated funding source is crippling the public transit systems that provide more than 400 million rides a year to Pennsylvanians. Without adequate funding, many of these systems will be forced to dramatically hike fares and cut services.

These challenges were outlined in a recent report from the bipartisan Transportation Funding and Reform Commission. The commission identified $1.7 billion in needs — $965 million for highways and bridges and $760 million for public transit. The panel's recommendations called for plugging the gap largely by increasing taxes and fees on consumers.

But rather than put additional burden on taxpayers, I proposed a solution with two main principles: leasing the Turnpike to generate revenue for highways and bridges, and supporting mass transit through a tax on the record profits big oil corporations have enjoyed while they've hiked gasoline prices to record levels. I have insisted that the legislation creating this tax grant the Attorney General the power to ensure the tax is not passed on to consumers at the pump.

I look forward to discussing my plan during our four-day bus tour, which will include stops in Allegheny, Cambria, Centre, Lancaster, Philadelphia, Lehigh and Luzerne counties. Although local concerns may vary, each region shares the need for immediate attention and comprehensive solutions to the problems they face.

For too long, the public debate has been framed as a choice between funding transit or highways and bridges, unfairly pitting region against region. The time has come to put aside special interests in favor of common interest. We can no longer afford to wait: Pennsylvania's transportation crisis must be solved this year.

Sincerely,

Edward G. Rendell

Subscribe to weekly messages here:
http://www.governor.state.pa.us/

[dropkickpa]

1. I'm liking the tax

on big oil!

[Penndems]

2. Me, too

A stroke of genius: Levy the excise on Big Oil, not PA taxpayers.

According to the Governor's public schedule, he'll be in Pittsburgh all weekend, starting with the St. Patrick's Day Parade tomorrow at 10:00 a.m.

Governor Rendell will outline his comprehensive plan for solving Pennyslvania’s transportation funding crisis on Monday, March 19th at 7:00 p.m. For the folks in the Pittsburgh Metro area, here's the information:

Regional Enterprise Tower
Southwest Pennsylvania Commission Offices, 31st Floor
425 Sixth Avenue
Pittsburgh





(edited to input additional info)

[PhishWithLemon99]

3. unfortunately...

the Gov is losing the PR battle on this. It's easy for the Repubs to keep insisting that this tax will just be passed onto the consumer. That message resonates more with the public and makes a better quote than the realities of the tax.

While some people argue that every tax gets passed onto the consumer, a net profits tax calculated from financial reports is completely different. Only about 30% of oil profits come from selling gasoline, and those profits are determined more by the market price of crude than anything else. So when OPEC isn't pumping it out enough to meet our demand, the price goes up, and hence the oil companies receive a windfall. Therefore, it's pretty difficult for an oil company to accurately calculate what their tax bill is and then pass the cost on accordingly. As opposed to a per-gallon tax, which is easy to add on at the pump. This isn't really a tax on the oil companies because oil companies are unique. They don't set the price of gas in order to make a profit...the market sets it for them. And the market has been setting it incredibly high, and therefore oil companies are making enormous windfall profits through no fault of their own. In reality, it's more of a tax on the oil market itself, it just passes through the oil company hands.

It's really not a tax increase, either, but a restructuring of the corporate net income tax to apply to oil companies that currently exploit the Delaware holdings loophole and avoid paying the 9.99% tax. Now, through combined reporting, oil companies would owe a tax around 6.2%, which is significantly less than the 9.99% they are required to pay if they didn't exploit the loophole. Really, the entire loophole needs to be closed across the board and result in a lowering of our very high 9.99% rate for everyone, but baby steps...

Plus, this thing is gonna run into some serious legal challenges. Money ain't gonna roll in for quite a while, even if the Gov rounds up the votes. Different money is going to have to be found this year to pay for this stuff before the tax money kicks in. I wish him the best, though.

[dropkickpa]

4. I figured as much

but, of course, with a shit ton of our state legislature being repubs from the pennsyl-fuckin-tucky part of the state, they don't want to give a dollar to the big cities for transportation, as they don't think it helps them in the least (nevermind the majority of state taxes come from us in the metro areas).

[Penndems]

5. Well, SOMEBODY had better do something - and SOON

This is an issue that the state can't afford to move to the back burner.

The transportation and public transit infrastructions need to be fixed before PAT, SEPTA, CAT (Harrisburg Capitol Area Transit), and every other city bus/rail system worker goes on strike (my worst fear). :scared:

[dropkickpa]

6. Mine too

The pending cuts PAT outlined are terrible. A HUGE portion of this county, most especially the elderly and poor, are going to be left with absolutely no means of transportaion. The people who will be hurt most are those who can least afford another hit.

A strike would cause me to lose my job. I do not drive, I DEPEND on public transit to go to work, dr appts, grocery shop, and so many other things.