For those who support a sound highway system, the newly enacted 2008-09 Pennsylvania state budget contains both good and bad news.

On the “good-news” side, the General Assembly and governor agreed to borrow $350 million in order to expedite the repair of more than 400 of the Commonwealth’s worst bridges.  On the “bad-news” side, lower gasoline tax receipts and an increased allocation to the State Police budget from the Motor License Fund (MLF) offset the increase in highway spending by nearly $100 million. 

Additionally, because the debt service for the $350 million in bonds is anticipated to come from the MLF, that means an estimated $20 million to $30 million less for “pay-as-you-go” highway projects in the new fiscal year.

The borrowing plan means more funding for highway projects than last year.  The consensus among lawmakers seems to be that the plan was a patch, not a comprehensive solution, and there appears to be recognition that additional steps will be required. 

At the same time, significantly escalating prices for petroleum, concrete and steel – radically outpacing the overall inflation rate – make the quest for additional solutions even more urgent if the state is to keep up with, and eventually get ahead of, highway maintenance needs.

“The softening economy created many challenges in crafting the new budget,” said Jason Wagner, PHIA managing director.  “Under those circumstances, it clearly could have been much worse for highway funding.  At the same time, we continue to be a long way from achieving a comprehensive solution to the highway funding crisis and for moving toward any type of a vision for Pennsylvania’s future mobility.”