Gov. Josh Shapiro may not have gotten all the money he wanted for public transit, but the Legislature took steps in several key transportation areas last week.
The compromise $47.6 billion state budget approved late Thursday provided the first increase in the state transit subsidy in more than 10 years and set up a special grant program to help smaller communities get money to fix roads and bridges. A day earlier, legislators passed a bill to establish the state’s first fees for drivers of electric vehicles, who don’t pay gasoline taxes that provide the vast majority of funding for road and bridge construction in the state.
Transit funds
Shapiro had asked legislators to approve a five-year bump in the state subsidy to support public transit, which hasn’t been increased in more than 10 years. His proposal would have provided $282 million a year more to help transit agencies that are still recovering from ridership losses during the pandemic and have nearly exhausted additional federal money they were given to maintain service.
After months of what state Sen. Wayne Langerholc, R-Johnstown and chairman of the Senate Transportation Committee, called “arduous negotiations,” the budget included an $80.5 million boost in transit subsidy this year and the promise to continue talks in the fall on a long-term funding plan.
Conditions on the Southeastern Pennsylvania Transportation Authority — it receives 65% of the subsidy money — have been a sticking point for GOP legislators. Riders have been concerned about safety on the transit system, where the Philadelphia district attorney’s office has been reluctant to pursue criminal charges in reported assault cases, and cleanliness of vehicles has been an issue.
To address the safety concern, the budget includes a $1.2 million increase in funding for the state attorney general’s office to prosecute crime on SEPTA property.
The increased subsidy for this year will provide Pittsburgh Regional Transit, which expects to run out of federal funds in 2028, with about $17 million more. SEPTA, which warned last fall that it could go into a “death spiral” without additional funds this year, will get about $50 million.
Langerholc said all parties are committed to working on a long-term funding plan when the Legislature returns in the fall.
When he signed the budget, Shapiro stressed the importance of long-range funding.
“We secured an additional $80 million for our public transit system in this budget, but hear me on this. That is just a start …” he said. “We are all committed to returning in the fall and finding a permanent solution for mass transit.”
In a statement, the Department of Transportation said it is “grateful” for the additional funds this year.
“But this is a temporary fix, and the conversation isn’t over,” Transportation Secretary Mike Carroll said. “I’m glad that we have a commitment from both parties to revisit transit funding when the General Assembly returns so we can find a permanent solution.”
State Rep. Ed Neilson, D-Philadelphia and chairman of the House Transportation Committee, credited House Democrats for pushing for the transit subsidy.
“This is a down payment and a promise to keep working and negotiating so we can fully fund our transit agencies in all 67 counties so that our residents in urban, suburban and rural communities can continue to have affordable and accessible ways to get to work, school, medical appointments and wherever they need to go,” he said in a statement. “I look forward to working with my colleagues over the coming months to reach a long-term solution to keep Pennsylvania moving forward.”
PRT also acknowledged the importance of the subsidy increase and the need to continue talks later this year.
“The governor’s budget not only ensures that people across Allegheny County will continue to be able to rely on our safe and accessible services to get where they’re going but will also help to bridge the gap until we can have frank, meaningful discussions about a long-term funding solution later this year,” PRT spokesman Adam Brandolph said in a statement.
Grant program
The new budget also includes a special program to help smaller communities obtain competitive grants for road and bridge projects.
Carroll said PennDOT still is working out the details for the program, which was championed by Senate Republicans. Smaller counties and communities have complained for years that they lose out for funding on projects important for their communities because they draw from the same pool of funds as metropolitan areas that can show higher traffic volume.
In this area, municipalities such as McKeesport and Millvale say they have had to close bridges because they haven’t been able to obtain funds to make the upgrades they need.
“This was a priority for Senate Republicans, and we’re grateful for their partnership as we work together to support transportation on the local network,” Carroll said.
Electric vehicles
Before the budget was passed, the General Assembly took its first step toward making owners of electric vehicles help take care of the state’s roads and bridges.
The House amended and approved its version of a Senate bill to charge owners of electric vehicles $200 the next time they renew their vehicle registration beginning in January. The fee is a payment in lieu of the 57.6 cents a gallon in gasoline tax that the owners of combustion engines pay to provide more than 75% of PennDOT’s funds for road and bridge construction and repairs.
The amount of revenue from the gas tax has become stagnant in recent years because of the growth in electric vehicles and more efficient combustion engines that get more mileage per gallon of gas.
The House version also sets a time frame for increases with the fee going up to $250 in 2026 and being tied to the Consumer Price Index in future years. Owners of hybrid vehicles will pay $50 next year and $63 in 2026.
The Senate bill included higher fees so it will have to vote on the bill again, but Langerholc said the Senate should have no problem accepting the lower fees. The initial fee is expected to generate about $25 million the first year.
“I’m just very happy to see us get that electric vehicle fee past the finish line,” said the senator, who has been pushing for a fee for several years.
Under former Gov. Tom Wolf, PennDOT was pushing for a completely different system to fund transportation that included charging road use fees for package deliveries and shared rides while the state shifted to a fee based on vehicle miles driven. Langerholc said it’s not time to pursue that type of drastic change yet.
“It’s always in the back of your mind,” he said. “I don’t think we’re at that point yet.”
Ed covers transportation at the Pittsburgh Post-Gazette, but he's currently on strike. Email him at eblazina@unionprogress.com.