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Rail News Home Rail Industry Trends

8/13/2010



Rail News: Rail Industry Trends

Pennsylvania's latest 12-year plan drastically cuts transportation dollars


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Pennsylvania’s Transportation Commission recently approved an updated 12-year transportation program that calls for an expected 24 percent reduction in state funding for transit, freight-rail, highway, bridge and aviation improvements.

The new plan, which takes effect Oct. 1, anticipates $51.6 billion in available state funding over the next 12 years, well below $67.9 billion outlined in a 2009 plan update. The latest plan estimates $6.3 billion for public transit and $228 for freight rail vs. $7.5 billion and $234 million, respectively, in the previous plan. Highway and bridge projects in the new plan’s first four years would receive $10.2 billion vs. $12.2 billion and aviation projects would obtain $602 million vs. $604 million.

Uncertainty about federal funding, inflation and a lack of additional resources has “squeezed” the latest budget, said Pennsylvania Department of Transportation Secretary Allen Biehler in a prepared statement, adding that Congress also has yet to enact a new six-year transportation authorization bill.

The 12-year program update assumes 1 percent growth in federal funds in 2011 and 2012, and 4 percent growth in 2013 and 2014. Additional state funding cuts might be necessary depending on funding levels in the reauthorization bill, said Biehler.

“Pennsylvania is falling far short of making the needed investments just to keep our system in a state of good repair,” he said. “The reductions outlined in the new 12-year program are a dramatic example of where we are headed.”