November 13, 2008
 
 
 

Gas-Tax Receipts Lag Behind Projections
Pennsylvania’s gasoline tax revenue is lagging significantly behind projections for the first four months of the current fiscal year.

The Department of Revenue reported that income in the Motor License Fund was 8.2 percent below projections, translating into a shortfall of $19.1 million through October. An 8.2 percent shortfall for the entire fiscal year would mean a loss of nearly $239 million in revenue in the MLF, which funds bridge and highway projects.

“As we saw toward the end of the last fiscal year, spiking fuel prices and an uncertain economy are keeping more people off the road, so receipts are down,” said PHIA President Ronald Drnevich. “But state and federal gas tax revenue is also likely to decline as a result of federal energy policies, which encourage greater fuel efficiency and alternative fuels. We may need to look at converting from a consumption-based user tax to a miles-driven approach sooner than we might have imagined just a few months ago.”

Biehler Elected to Head AASHTO
Pennsylvania Transportation Secretary Allen Biehler was elected last month as president of American Association of State Highway and Transportation Officials. AASHTO is a nonprofit, nonpartisan association representing highway and transportation departments in the 50 states, the District of Columbia, and Puerto Rico. PHIA congratulates Secretary Biehler for giving Pennsylvania more prominence in the national discussion of transportation policy.

Senate Republicans Convene Transportation Summit

Led by Senate Transportation Committee Chairman Roger Madigan, the Senate Republicans will convene a transportation funding summit next week in Harrisburg. The summit was conceived to get an early jump on framing the funding discussion for the legislative session beginning in January.

For more information on this topic or other transportation issues, call PHIA at (717) 236-6021, or e-mail jwagner@paconstructors.org
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