Editorial editors across the state have taken note that the Pennsylvania General Assembly still has not resolved the highway funding issue, and a solution is not likely in the waning days of the current legislative session. There seems to be a consensus that legislators will again take up the issue early next year.

So, where exactly are we, now that the Federal Highway Administration has rejected the proposal to toll Interstate 80, and the Turnpike lease deal is off the table? Following is an update, through the lenses of the Transportation Funding and Reform Commission and the Pennsylvania Economy League studies, which were completed two years ago:

• The funding gap. By acclamation, the TFRC calculated the gap at $1.7 billion annually. Act 44 reduced the gap to around $500 million annually, but rejection of the I-80 tolling plan, coupled with dramatic increases in the cost of construction materials are pushing that number back up toward the $1 billion mark. An upcoming Economy League update may shed some light on where the gap is today.
  
  
• Increased taxes and fees. Passenger vehicle registration costs only $36 per year, and a four-year renewal of a driver’s license costs only $26. The 32-cent per gallon state gasoline tax hasn’t changed in 11 year, even though an 8-cent increase would cost a typical motorist only $4 per month. The Economy League said user-fee increases would be required for a comprehensive funding solution, yet lawmakers declined to develop any such proposal.
  
  
• Public-private partnerships. The Economy League cited this mechanism as offering some promise, particularly for new projects that would increase capacity. Legislation that would enable such projects passed in the Senate, but was not taken up in the House.
  
  
• Debt. The state will borrow $1 billion per year through 2010 from future Turnpike revenue, but cuts it by half after that due to the rejection of the I-80 tolling plan. The state borrowed an additional $350 million this year to expedite bridge repairs, and Governor Rendell said he plans to seek similar amounts in each of the final two years of his term.
  
  
• Dedicated funding streams. The Economy League said this was essential to sustain funding efforts over time. Although borrowing against future Turnpike revenue qualifies, no other mechanisms were offered, and debt service for the $350 million borrowed this year will reduce the revenue available for pay-as-you-go projects.
  
  
• Local taxing authority. Thought to be an excellent tool for funding regional mass transit operations, only Allegheny County secured this tool by way of its poured-drink tax.