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Corbett Releases Budget, Transportation Plan

Wednesday February 6th, 2013

On Feb. 5, Gov. Tom Corbett released his $28.4 billion budget proposal for the 2013-2014 fiscal year. The new plan provides for new transportation funding, reform of the state pension system, liquor store privatization, and education funding. The governor’s plan increases overall spending by nearly 3 percent but would not increase the personal income tax or the state sales tax.

For more about the budget process and how Corbett’s plan will impact local government, PSATS members are invited to join Association staff for a free budget breakdown webinar on Wednesday, February 13, from noon to 1:30 p.m. Click here to register for the PSATS budget webinar. (You will need to log in with your member ID and password.)

Transportation funding

Corbett’s transportation plan would raise an additional $1.8 billion in new funding over five years by gradually removing the artificial cap on the oil franchise tax, which provides most of the revenues for the state’s Liquid Fuels Fund, the primary source of dollars for repairing and maintaining local roads and bridges. The plan would also reduce the flat tax on liquid fuels from 12 cents per gallon to 10 cents per gallon.

This change is expected to generate approximately $200 million in new annual liquid fuels funding for municipalities by the fifth year and would boost the municipal share from the current $300 million to an estimated $500 million.

Corbett also plans to put state dollars to better use by modernizing PennDOT operations. In addition, he wants to see more state and local partnerships on traffic signal management and bridge maintenance.

The governor’s proposal is an important starting point for the critical discussion on transportation funding.