Dear KTFC Members & Friends:

First, the good news: Because of Act 89 of 2013, Pennsylvania has made significant headway in reducing the number of faulty bridges and repaving a significant portion of roads in the Commonwealth. That’s at least part of the reason that traffic fatalities last year were the lowest since the state began keeping statistics.

Now, the bad news: We’re losing ground, and staring at another impending transportation funding crisis that threatens to reverse the progress we’ve made the last six years.

But wait, you say… Act 89 was supposed to increase funding for transportation by $2.3 billion per year. Where’s that money going? There are three basic factors:

  • Even though the state is gradually reducing the amount being siphoned out of the constitutionally protected Motor License Fund, the diverted amount still exceeds $700 million and will again in the next fiscal year. Since the passage of Act 89, the diverted amount totals more than $4 billion and represents the equivalent of 12 cents per gallon.
  • Improving fuel efficiency and alternative fuel vehicles are reducing the revenue raised by fuel taxes and license and registration fees, and inflation is increasing the cost of construction materials.
  • The needs gap when Act 89 was passed was approaching $5 billion per year, more than twice the amount raised by the act.

APC’s Bob Latham explains the situation on this recent installment of Pennsylvania Newsmakers, hosted by Terry Madonna. To view the segment, follow this link.

Be of Good Cheer,

— The Wolff