How Will I-80 Decision Affect PA?

Act 44 was signed by Governor Ed Rendell in 2007, with the intention of increasing

transportation funding in Pennsylvania to 30% over previously established levels by increasing tolls on

the PA Turnpike and the creation of new tolls on Interstate 80. Since being signed, Act 44:

• Has created an average of $946 million in additional annual funding over the next decade, with

$532 million dedicated to highways and bridges and $432 million devoted to transit.

• Has created more than $2 billion in supplemental transportation funding for roads, bridges and

the state’s 73 mass transit agencies.

• Had the potential to generate $83.3 billion in supplemental funding in a 50‐year period.

• Within our region, has generated $16.75 million in new funding for roads and bridges within the

first year of its enactment, including vital funding for SEPTA.

The effects of this decision will have both immediate and long term impacts on transportation

funding in the commonwealth of Pennsylvania. Effective July 1, 2010:

• Transit systems will lose $200 million annually, nearly eliminating the Act 44 capital program

creating service reductions and fare increases statewide.

• Funding for 73 public transit systems that provide more than 400 million rides a year to

residents in all 67 counties will drop by $160 million per year

• Significant impacts will be seen on local transportation improvement projects, including the

5,600 structurally deficient bridges and 6,000 miles of road in desperate need of repair.

o The average cost to replace a bridge is $3 million and the average cost to rebuild a mile

of new road is roughly $1 million.

o This decision removes funding for the replacement of 16‐18 bridges or 50 miles of

roadway.

There are other options being evaluated to fix the gap in transportation funding. Governor Ed

Rendell has called for a Special Session on Transportation to discuss the shortfall in transportation

funding created by the rejection of Act 44. These alternatives include:

• Public Partner Partnership to finance transportation projects

• Raising Taxes across Pennsylvania, including:

o Gas Tax

o Property Tax

o Real Estate Transfer Tax

o Hotel Room Rental Tax

• New Taxes, such as the exploration of a Vehicle Miles Traveled Tax

• Tolling the 50 mile Pennsylvania section of I‐95

• Leasing the Pennsylvania Turnpike to outside parties