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Sunday, September 21, 2008

Gas tax increase coming instead of Turnpike lease?

Pittsburgh Tribune-Review says Rendell is looking at a gas tax increase in light of the refusal of legislative leaders to consider the lease.

"To make up the shortfall, we're looking at a gas tax increase," said
Rendell spokesman Chuck Ardo. "Where else are we going to find the money for the
shortfall in transportation funding?"

While we know there are lots of places to make up some of the shortfall -- such as repealing prevailing wage and using competitive contracting in mass transit -- the gap between needs and potential cost savings is too great. Of course, if the General Assembly and Governor were willing to cut spending elsewhere -- which we've also recommended time and time again -- then we could reprioritize state spending. And what do you think the chances are of all those things happening?

Well, we obviously think higher gas taxes, more bonded debt, and the preservation of the Turnpike Commission are most likely to be the outcome if the lease doesn't go through. And it is why we believe the lease makes the most economic and public policy sense.

2 comments:

Anonymous said...

Here is an idea, sell SEPTA. Road and bridge money should not be used for mass transit anyway.

Anonymous said...

Have Mr Rendel cut some of his hand outs from the working people or the (TAX SLAVE) to the welfare crowd, This should be more than enough to repair bridges and roads. Thank God the Feds killed the I-80 tolling, this would have been the economic death of the northern part of the state. Go ahead and lease out the turn pike no one can afford to use it anyway. The tolls are out of hand like everything else in this state. This is what you have when you have a TAX and SPEND Government like we have here in Pa.!!!!!! We have money to burn according to them..........