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Yesterday, Pennsylvania Gov. Edward Rendell released his proposed fiscal year 2006-2007 budget, which calls for a $2 million hike in freight-rail funding compared with the current budget.

The governor is proposing $10.5 million for freight-rail infrastructure improvement projects. The FY05-06 and FY04-05 budgets allocated $8.5 million and $4.25 million, respectively, for freight rail. The Pennsylvania Department of Transportations’ Bureau of Rail Freight, Ports and Waterways distributes the freight-rail funds, some of which are granted to regionals and short lines.

In addition, the FY06-07 budget proposes a 2 percent increase in mass transit funding to $299.4 million.