State Highway and Bridge Funds
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1 State Highway and Bridge Funds Highway and bridge construction funds are a mix of state and federal monies. At the federal level, there has not been an increase in the tax on gasoline since The federal Highway Trust Fund went broke in 2008 and had to be subsidized by Congress. It is estimated that by 2013 it will be broke again. The lack of state resources to fill any gap in federal funding is a cause for concern because it would cripple road and bridge construction in Pennsylvania.
2 Road and Bridge Projects Most road and bridge building and improvement projects are competitively bid by private contractors through PennDOT. Over the past decade the amount of money available for projects has been uneven and unpredictable. The only substantial increase below is attributable to ARRA (federal stimulus) funds. As a result the private companies that bid projects have been unable to invest in new equipment and maintain staffing levels. Many of the larger firms have moved substantial parts of their operations to other states where funding is more secure.
3 State Expenditures for Highway Maintenance Total expenditures for highway maintenance were less in 2012 then they were in These are the funds that are used to fix potholes, repair damaged sections of roads and bridges, remove debris, and plow snow. The maintenance budget is all about keeping our roads safe for the travelling public. As our system ages the need for maintenance will continue to increase.
4 Distribution of PennDOT Funds More than 75 percent of PennDOT funds go to state and municipal highway related projects including planning, maintenance, repair and construction. PennDOT is also a conduit for state and federal funds to the state s transit systems, airports and rail systems.
5 Highway Improvement Budgets Highway monies go to three places: rebuilding, resurfacing and maintaining. The majority of funds historically went to maintenance, but around one-third focused on new capacity, rebuilds and major resurfacing projects. As funding becomes less certain focus has shifted more to maintenance. This means that major rebuilds, adding new capacity and major resurfacing of old roads will be delayed.
6 State Highway and Bridge Funds Highway and bridge construction funds are a mix of state and federal monies. At the federal level, there has not been an increase in the tax on gasoline since The federal Highway Trust Fund went broke in 2008 and had to be subsidized by Congress. It is estimated that by 2013 it will be broke again. The lack of state resources to fill any gap in federal funding is a cause for concern because it would cripple road and bridge construction in Pennsylvania.
7 Capacity Projects Capacity projects add new lanes miles and bicycle paths to the system. These projects help to eliminate congestion and provide access for alternative means of transportation. These projects are listed in planning documents that are prepared by PennDOT usually projecting three years into the future. The documents prepared for FY listed 25 percent of all proposed projects adding capacity. In the most recent reports only 3.7 percent of the projects listed address capacity. The result is we can expect little in the way of increased travel convenience in the future. The bottom line is that funds are declining for projects that would ease congestion on our roads.
8 Highway Budgets Overall, highway spending over this five year period has been reduced by 1.5 percent. To understand the true impact of this reduction the chart below shows that debt has increased by 18.8 percent and funding for state police (nearly 80% comes from highway budget) has increased 10.3 percent during this period. This is a total of nearly $79 million at a time when total funding for maintenance had decreased by $137 million. With an aging system funding cuts will only serve to increase needs in the future.
9 Structurally Deficient Bridges Pennsylvania has a larger number of structurally deficient bridges than any state in the country. One reason is the state maintains more bridges (25,000) than any other state. Bridges are constructed of steel and concrete. Life expectancy is around 50 years before major repairs or rebuild are needed A new bridge starts with a rating of 100. Over the years the rating decreases. When it becomes structurally deficient it may not be able to handle the loads for which it was designed and may be posted to limit weight.
10 Aging Bridges The average life expectancy of a bridge is 50 years. The average age of a state bridge in Pennsylvania is 51 years. Pennsylvania has the distinction of having the most structurally deficient state bridges of any state in the nation. As bridges age their ability to handle the loads for which they were designed diminishes. As a result, bridges are posted with weight restrictions. These restrictions can result in higher prices for goods and services or emergency vehicles being detoured resulting in life-saving services being delayed. Bridges connect people and communities and support our quality of life in Pennsylvania.
11 The Gas Tax : A User Fee Funding for our road and bridge system is generated primarily from federal and state user fees on gasoline and diesel fuel. These taxes are only paid by people who consume fuel. The user fee is not a sales tax. It does not increase with the price of fuel. The federal tax rate has not increased since The flat cents per gallon, applied by the state, has not increased since The Oil Company Franchise Tax reached its legal limit in As the price of gasoline at the pump fluctuates due to global market forces, the Pennsylvania gas tax does not change.
12 Gas Tax Revenues Chart Gas tax is a fixed amount applied to a gallon of gasoline. The price of gasoline does not impact what is collected at the pump. Current CAFÉ standards have the fleet average for vehicles increasing to average 54 MPG by This will mean that the amount collected by the gas tax will continue to decrease even as the number of miles vehicles travel increases.
13 Funding Gap Transportation infrastructure is an asset that ages, deteriorates and must be maintained. The difference between the funds available and the system s needs represents the funding gap. As outlined in the 2011 report from the Transportation Funding Advisory Committee to Governor Corbett the current annual gap is $3.5 billion. This gap will grow to $7.2 billion by The funding gap is represented in projects that should be rebuilt being resurfaced or delayed. There is only so long the system can maintain its integrity with delays and substitutions.
14 TFAC Funding Targets by Category The Transpiration Funding Advisory Commission has recommended growth in transportation funding over five years. Over this period highway and bridge funding will increase by 400 percent. Money to local governments would realize growth six-fold. Transit funding would double under this plan. Overall, the TFAC Report recommends funding increases of over 300 percent over the next five years.
15 Oil Company Franchise Tax The Oil Company Franchise Tax (OCFT) is a tax on the wholesale price of oil and paid by the oil companies. The tax was created under Governor Thornburgh but it was capped at $1.25 per gallon. This cap was realized in Since that time revenues generated from OCFT have been flat. The TFAC Report has recommended lifting this cap of wholesale oil.
16 TFAC Impact on the Typical Driver The Transportation Funding Advisory Commission (TFAC) report to Governor Tom Corbett in August 2011 stated that it order to add an additional $2.5 billion to the transportation budget annually it would cost the average motorist in Pennsylvania a total of $2.54 per week in the fifth year. This is less than a gallon of milk, box of cereal, gallon of ice cream or a 12 pack of soda.
17 Economic Impact of $2.5 billion TFAC Program Output by the Pennsylvania manufacturing industry would increase by over $1 billion as a result of the highway and bridge construction investment. Other industries that would increase output by over $250 million include real estate ($369.5 million), retail trade ($345.3 million), finance and insurance ($327.3 million), professional and technical services ($320.3 million) and health care ($283.8 million). An estimated 50,091 jobs would be created throughout the Pennsylvania economy, including approximately 5,174 jobs in retail trade and 4,051 jobs in manufacturing. READ THE COMPLETE STUDY AT:
18 Safety Improvements Bridge Modifications Did you ever notice that bridge crossings and the roads that bring us to them are not the same width? Often a roadway will narrow at a bridge crossing or there may be additional barriers in place. Also, bridges freeze before roadway because they are built in the air rather than on sub-surfaces like dirt, gravel or stone. We have learned how to make bridges safer by making them wider and using new materials. Source: Future Mobility in Pennsylvania Report, November 2010
19 Safety Improvements Shoulders You likely don t think about roadway shoulders until you need one. This can happen when you blow a tire on a busy road or have to pull off the road for some other emergency. Having an adequate roadway shoulder gives you what can amount to a lifesaving margin for error when you need it. Adequate shoulders also provide safe travel for walkers, bicyclists, farm equipment, horse-drawn vehicles as well as better road drainage. Source: Future Mobility in Pennsylvania Report, November 2010
20 Safety Improvements Roadside Obstacles We all have driven on narrow, curvy roads where opposing traffic is a bit too close for comfort. What you may not have thought about is what you would do if the car you are facing suddenly crossed the line and you had to swerve to avoid it. On many narrow roads there is no margin for error and you would swerve into a deep ditch or hit a large rock or tree. Safety is no accident. We know how to improve safety on narrow roadways. Source: Future Mobility in Pennsylvania Report, November 2010
21 Safety Improvements Medians We have all driven at fairly high speeds with opposing traffic traveling at similar speeds no more than a few feet away. Driving at 60 miles per hour translates to driving 88 feet per second. A call on you cell phone or minimal distraction can quickly move your car well into oncoming traffic. Median barriers save lives. They are needed on many heavily traveled roads in Pennsylvania but we simply do not have the resources. Source: Future Mobility in Pennsylvania Report, November 2010
22 Safety Improvements Turning Lanes We have all waited to make a left turn in front of oncoming traffic and heard the honking of the horn of another car behind us. We all know how much easier and safer it is when there is a turning lane, especially one with a delayed green light or turning arrow. Unfortunately, these safety improvements are the exception rather than the rule on most Pennsylvania roadways. Source: Future Mobility in Pennsylvania Report, November 2010
23 Safety Improvements Traffic Light There are over 14,000 traffic lights in Pennsylvania. They are the responsibility of local governments to install and maintain. A traffic light system can cost upwards of $100,000 to install. With local governments being pressed for resources there is no money available to install additional traffic lights in most communities in Pennsylvania even at intersections that are known to be dangerous. Source: Future Mobility in Pennsylvania Report, November 2010
24 Safety Bicycle Lanes Philadelphia is one of the leading cities in the United States for people who choose to commute/travel using a bicycle. The problem is that most roads are not safe for bicycle travel. In Pennsylvania, 39 percent of rural pedestrian/bike lanes are below minimum standard width. Also, in Pennsylvania 23 percent of all pedestrian fatalities are youth under age 16 years. Bike lanes can make a significant difference. Philadelphia experienced a 40 percent reduction in reportable accidents on Spruce and Pine Streets after the installation of buffered bike lanes.
25 Safety Paved Shoulders Paved shoulders on roadways provide a stable surface for pedestrians to use when sidewalks cannot be provided. These paved surfaces help to reduce crashes and injuries involving pedestrians including head-on collisions by as much as 75 percent, sideswipe accidents by up to 41 percent, fixed object crashes by as much as 49 percent and cars striking pedestrians by 71 percent. Added benefits include safer travel for bicyclists who can share the road with cars and trucks and safer mail delivery in rural areas.
26 Freight Rail There are 5,071 miles of rail lines in Pennsylvania. We have more operating freight railroads than any other state with over 55 operating companies of which four are Class 1 and 51 are short line and regional rail. More than 6,500 Pennsylvanians are employed in the industry with average wages and benefits in excess of $97,000 a year. Freight rail moves a ton of freight, 469 miles using one gallon of diesel fuel. Nationwide each freight rail job support 4.5 jobs elsewhere in the economy. Freight rail is a vital component to the future development of ports in Pennsylvania. Philadelphia has four freight rail lines into its port which creates a tremendous opportunity for growth.
27 Pennsylvania s Asphalt Industry The Pennsylvania Asphalt Pavement Association is comprised of 132 member companies. The industry employs over 10,000 workers both union and non-union with individual annual wages of around $50,000. The industry s total annual payroll is $500 million. The industry produces between 17 and 20 million tons of asphalt annually at 150 locations statewide. Asphalt paving is used on 94 percent of Pennsylvania s 117,000 miles of centerline roadway. Since 2008, PennDOT s purchase of asphalt has dropped by 45 percent reflecting the lack of funding needed for paving activities in Pennsylvania.
28 Amtrak in Pennsylvania In FY11, Amtrak ran over 120 trains per day in Pennsylvania servicing nearly 5.9 million riders. Amtrak employs 2,670 Pennsylvania residents and pays $204 million in annual wages in Pennsylvania. In fiscal year 2011, Amtrak placed orders for goods and services totaling $182,385,206 in Pennsylvania the largest of which was a $51,909,123 contract in the Borough of Conshohocken. In addition to direct Amtrak services SEPTA and New Jersey Transit operate commuter services on Amtrak s Northeast Corridor track.
29 Pennsylvania s Business Climate CNBC scored 50 states on 51 measures of competitiveness developed with input from business groups including the National Association of Manufacturers and the Council on Competiveness. States received points based on their rankings in each metric. Then, CNBC separated those metrics into ten broad categories, weighting the categories based on how frequently they are cited in state economic development marketing materials. That way, the study ranks the states based on the criteria they use to sell themselves. Pennsylvania received low grades in the categories of Workforce, Cost of Business and Infrastructure/Transportation. Source:
30 Site Selection Factors Highway access is the number one factor in site selection for businesses. In this study, corporate taxes ranked as the 10th factor considered and job training programs were the 21st ranked factor. Having the ability to keep pace with demand for a modern and safe transportation system may do more for job creation in Pennsylvania than any other program the state currently funds.
31 Pennsylvania s Concrete Industry Pennsylvania has 9 Portland cement manufacturing plants; 4 Portland cement companies with U.S. Headquarters an in Pennsylvania as are 155 Ready Mixed Concrete Plants, 150 Precast Concrete and Concrete Masonry Plants, 767 Concrete Contractors, 993 Mason Contractors. There are over 2,000 cement and related industry establishments in Pennsylvania that directly employ 20,800 taxpayers. That is roughly the entire population of Pottstown, PA.
32 Transit Economic Impact Pennsylvania transit is a purchaser of goods and services including fuel, parts, equipment, buses, electronics, uniforms, and consulting services to mention only a few. The investment yields on capital and operating investments in transit are 300 percent. This means that for every dollar invested the sales impact is between $3.00 and $3.20.
33 SEPTA Procurement Map During the fiscal year , SEPTA (Southeast Pennsylvania Transportation Authority) spent nearly $1 billion within Pennsylvania on supplies and services. The map below shows that SEPTA has vendors and suppliers in nearly every county of Pennsylvania. SEPTA s investments help to create and maintain good jobs throughout our state showing that an investment in SEPTA is an investment in Pennsylvania.
34 Transit Ridership Transit provides about 444 million rides annually. It services people getting to work, children to school and the poor and elderly getting to shopping and doctors offices. Without transit many hospitals, hotels, and restaurants would not have adequate staff. Transit is a vital component of our integrated transportation system in Pennsylvania.
35 Transit Bus Miles Pennsylvania transit agencies provide 104,224,066 fixed route vehicle miles of bus transportation to residents with a total fleet of 3,130 buses. The largest system in Pennsylvania is SEPTA. This system serves the heavily populated southeast region of Pennsylvania with bus and light rail service. The SEPTA system covers fixed route mileage of 45,027,501 annually with a fleet of 1,392 buses. The Pittsburgh system (PAAC) totals 31,191,980 miles annually with a fleet of 758 buses. Without transit in just these two major cities automobiles and other forms of transportation would have to fill a gap of more than 75,000,000 miles annually.
36 Transit Fare Box Collections Transit capital and operating funding has not kept pace with inflation over the past decade. Passenger fares collection has exceeded the rate of inflation in all areas within the commonwealth; rural, small urban PAT and SEPTA. The graphs below show that farebox collections have increased even when adjusted for inflation between 1999 and 2009.
37 Transit Operating Needs Operations are the costs of running a service. They include salaries, benefits, healthcare, fuel costs, planning, and consulting along with many others costs of doing business. Act 44 promised to increase operating subsidies to $800 million with actual growth of 2 percent annually with funds collected from tolling I-80 and the PA Turnpike Commission s lease of the roadway. Tolling was rejected by the federal government resulting in a $34 million decrease in operating funds by Assistance is projected to grow at about 1 percent a year with transit systems facing 30 plus percent increases in fuel costs and double digit increases in healthcare costs.
38 Transit Capital Funds Act 44, passed in 2007, created the Public Transportation Trust Fund (PTTF) to fund capital projects used to buy new buses, trains and repair aging infrastructure. PTTF was to grow to $345 million in funding by This was never realized, because the federal government denied Pennsylvania the authority to toll Interstate 80. As a result, capital funds for transit systems decreased to $195 million annually. The Transportation Funding Advisory Commission s recommendations would immediately increase capital funding to more than $700 million annually with steady growth over the next decade brining the total to over $800 million by 2021.
39 Transit Bridges A little known fact is that transit agencies own and maintain 470 bridges in Pennsylvania. SEPTA has 367 bridges some of which were first built in the 19th century. PAT has 80 bridges and Amtrak maintains 23 bridges in Pennsylvania. A bridge failure will shut down a train line which can carry as many as 10,000 commuters a day to work. SEPTA recently approved a $303 million capital budget that does not include bridge repair and rebuilding.
40 Local Funding Local governments spend $1.6 billion annually maintaining and plowing local roads. At the state level the funding gap stands at $3.5 billion. At the local level the current funding gap is calculated to be $2.2 billion annually. Approximately 80 cents out of every dollar spent on local roads comes from local taxpayers in the form of county and local taxes. As the local tax burden increases locally one of the first expenditures to be cut back in road and bridge maintenance.
41 Local Roads Sixty four percent of all roads in Pennsylvania are maintained at the local level. The local roadway system is a mix of state and local roads in almost every community. Statewide state roads include Routes 1, 3, 10, 15, 30, 322, 422, as well as many others. The responsibility of local governments is to maintain and plow the thousands of connector roads that lead to these inter county routes and our interstate system of highways..
42 Local Bridges Thirty-five percent of bridges over 8 feet in length are maintained by county and local governments. These governments have no source of income dedicated to bridge maintenance. They depend on state and federal funding. As a result of growing funding gaps at both the state and federal levels, local governments are increasingly faced with having to restrict and/or close local bridges.
43 Dirt and Gravel Roads Pennsylvania s Dirt and Gravel Road Maintenance Program has made effective use of its $5 Million annual allocation since it began in The Program, run by Conservation Districts in 64 counties, has funded over 2,200 road sites to date and currently has a backlog of 14,000 unfunded identified pollution sites. A funding increase of $10 Million will mean that the Program will be able to address the 16,600 currently identified worksites in 28 years. A funding increase of $15 Million will mean that the Program will be able to address the 16,600 currently identified worksites in 18 years. There are only two counties in Pennsylvania, Philadelphia and Delaware, that have no unpaved roads. 16,600 miles of unpaved roads in PA
44 Bicycle Access Children use to walk and ride bicycles to school and play. The growth of suburban areas has limed the number of routes where children can ride bicycles safely. Bicycle paths require rights-of-way be built on existing roads and bridges. Unfortunately, the funding for capacity expansion projects has dropped to 3.5 percent of total spending. Not having funds for capacity means that our children will continue to take buses to school and be driven rather than walking to play. The result is an increase in obesity.
45 Walking To School A local school district in Montgomery County spends $6.5 million in transportation out of $94 million budget. The fact is that many of the children in this district, which is comprised of three relatively small, contiguous local communities, could easily walk or ride a bicycle to school. The reason they cannot is because there are no sidewalks in most of this area nor are there safe bicycle paths on heavily trafficked roadways. Funds to build these pedestrian routes would likely be included in new transportation funding. These funds would help to reduce transportation costs and help our children stay healthier with daily exercise.
46 Walkers and Bicyclists Active transportation, walking and bicycling, accounts for 10 percent of all trips in America. Half the trips in America are within a 20 minute bike ride and one-quarter are within a twenty minute walk. Providing safe and accessible routes for walkers and bicyclists should be a considered as an essential part of any comprehensive transportation plan. Active transportation not only makes a difference in the quality of life in communities, but also leads to a substantial reduction in our dependence on cars and fossil fuels. With only a modest increase in bicycling and walking we could reduce driving by 70 billion miles annually. This would cut oil dependence and climate pollution from passenger vehicles by 3 8 percent. For more information visit For more information visit
47 Growth in PA Turnpike Debt The Pennsylvania Turnpike consists of 532 miles of highway that connects Pennsylvania with New Jersey in the east and with Ohio in the west. The Northeast Extension (I-476) runs from the City of Chester to the City of Scranton. The turnpike is a toll road. In 2006, Pennsylvania Turnpike Commission (PTC) entered into a deal with PennDOT to lease I-80 as part of the Act 44 Plan to fund our transportation system. When tolling of I-80 was denied by the federal government the main source of income for the deal was eliminated and as a result PTC s debt has continued to grow to where it now stands at $7 billion.
48 Millions of Dollars Aviation Jet Fuel Tax Revenues Annual tax has dropped from a high of $14.9 million in 2001 to a projected $7.6 million in Revenues have been declining because jet aircraft have become more efficient in the use of fuel. The jet fuel tax was enacted in 1984 at a rate of $.015 cents per gallon. It is capped at $.02 cents. The annual adjustments for the jet fuel tax is based on the Producer Price Index that is calculated on October 1st each year. It would take $222 today to purchase what $100 purchased in $16.0 Jet Fuel Tax $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $
49 Aviation Airports Pennsylvania has a total of 127 public use airports and 6 public use heliports. Fourteen of the public use airports have commercial service with scheduled passenger and air cargo service. There are 16,405 pilots who live in Pennsylvania. There are 7,879 general aviation aircraft based in PA. Airports employ and support 304,462 jobs which is 5 percent of the total workforce in Pennsylvania. Aviation has a $9.2 billion payroll and contributes $23.6 billion to the PA economy annually.
50 Aviation Aviation Development Program ADP funds are used to leverage state funds to attain the maximum amount of Federal Airport Improvement Program dollars. Federal grants provide 90 percent of project funds leaving the State of Pennsylvania responsible for 5 percent and the airport paying 5 percent. State funds are collected through taxes on jet fuel and aviation gas. A decade ago there was approximately $11 million in funds available. In 2012, this number has dropped to $4.0 million.
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