Associated Pennsylvania Constructors reports that support is growing for a proposal that would begin moving at least some of the responsibility for State Police funding out of the Motor License Fund (MLF) and into the state’s General Fund.  The measure would free up more MLF revenue for highway projects.

House Bill 2309, introduced recently by Reps. Keith McCall (D-Carbon) and David G. Argall (R- Schuylkill), would provide for a 10-year phase-out of the practice of providing the majority of the State Police budget from the MLF, which receives proceeds from the state liquid fuels tax.  The proposed 2008-09 state budget appropriates $510 million from the MLF to State Police – 73 percent of its budget, compared with 67 percent of its budget just six years ago.

Following Governor Rendell’s “Rebuilding Pennsylvania” proposal – a $2 billion bond program to accelerate rehabilitation of state-owned bridges – support began to build for the idea of servicing the new debt by shifting more of the State Police budget into to the General Fund.  Early indications are that this can be covered by revenues in the General Fund. 

Under consideration is a plan that would marry the bond program with the McCall-Argall bill.  Specifically, it would transfer to the General Fund, on an annual basis, the responsibility for State Police operations in an amount equal to the debt service for the bond program.  This debt service is estimated at $16 million in the next fiscal year, growing to $160 million by 2019.

“By gradually rededicating Motor License Fund revenue to transportation projects, we can retire the expedited bridge repair debt from a dedicated funding source without reducing the resources available for pay-as-you-go projects,” said Bob Latham, APC executive vice president.  “While this is not an immediate or complete solution to the highway funding problem, it does increase the resources for highway projects and allows us to borrow without mortgaging the future.”