Gov. Tom Wolf announced a commitment to phasing out Pennsylvania’s gas tax, which he said is becoming an unreliable source for funding Pennsylvania’s vast transportation network. He signed an executive order establishing the Transportation Revenue Options Commission, which will develop comprehensive funding recommendations for Pennsylvania’s large and aging infrastructure.
“Our economy, our communities, and our future rely on a strong transportation system that supports our safety and growth. We have more than $9 billion in annual unmet needs across our state-maintained transportation system alone. At the same time, Pennsylvania is relying too much on outdated, unreliable funding methods, and the federal government hasn’t taken meaningful action in decades,” said Wolf. “Phasing out the burdensome gas tax, coupled with seeking long-term reliable funding solutions that will keep pace with our infrastructure needs, deserves a close examination. Forming this bipartisan commission will bring multiple, bipartisan voices to the table to ensure that we can examine reliable, sustainable revenue solutions to address both near-term and long-term funding needs.”
Pennsylvania has one of the largest state-owned transportation networks in the country, with nearly 40,000 miles of roads and over 25,400 bridges under its direct purview. PennDOT also oversees aviation, rail freight, public transportation, ports, pedestrian and bicycle programs.
In 2019, the Transportation Advisory Committee identified major risks to transportation funding such as reduced fuel revenues, unpredictable federal funding, and legislative changes to reduce commitments.
PennDOT’s latest assessment places the annual gap of its needs in all modes and facilities at $9.3 billion, growing to an annual $14.5 billion gap by 2030.
Further, as more fuel-efficient cars and technologies are created, reliance on the gas tax for state revenue is less and less dependable, said Wolf. Any phase out of the gas tax will need to be coupled with new or replacement revenue.
The Transportation Revenue Options Commission is comprised of transportation, economic and community stakeholders from both the public and private sectors, including majority and minority leaders from the House and Senate Transportation and Appropriations committees. PennDOT Secretary Yassmin Gramian will serve as commission chair.
The commission will have its first meeting by March 25 and a report of commission activities and funding options will be submitted to the governor before Aug. 1.
“I am grateful to all the commission members for contributing their time and expertise to this critical issue,” said Gramian. “We must work together to find sustainable, future-focused funding solutions that will keep Pennsylvanians moving.”
