Friday, December 19, 2014

PennDOT Surpasses Road and Bridge Fixing Goals



Barry Schoch won't gloat.

He's too professional. Too serious about his life's work as an engineer. Too proud of the men and women he directs as secretary of the state Department of Transportation.


But Schoch would have every right to scream from the highest bridge in Pennsylvania: Told you so.

Schoch was the catalyst of arguably Gov. Tom Corbett's biggest, most important legislative victory: the November 2013 passage of the largest road, bridge and mass transit spending law the state has adopted in nearly two decades.

The $2.4 billion transportation funding package, known as Act 89, went into effect Jan. 1. It was expected to raise transportation spending up to 39 percent over the current $6.1 billion by 2017-18.

In 2014, the bill's impact on motorists and taxpayers has gone exactly — and in some cases better — than Schoch had predicted in speeches while crisscrossing the state to garner public support and in private talks with reluctant lawmakers.

Schoch promised skeptics that PennDOT could manage the influx of taxpayer money to fix more roads and bridges.

"We are not only on schedule, we are ahead of schedule," he said in an interview.

PennDOT had estimated Act 89 would allow the agency to spend an additional $800 million in the first 18 months. PennDOT figured it could pay for 200 additional projects totaling nearly 1,600 miles of road improvements and 83 bridges.

The law has brought in $1.5 billion in the same time, enabling the state to repave and resurface 221 roads, spanning 1,696 miles, by November, PennDOT records show. That includes 20 road projects and more than 199 miles in the district that covers the Lehigh Valley, Poconos and Berks County.

Those figures do not include additional road projects scheduled to be bid in the fall, with construction in 2015.

PennDOT is on track with its bridge work, too, under a pilot program that allows bidding several bridges under one contract. The bundling program saves costs on supplies and design work, Schoch said.

The only bridge being replaced in the Lehigh Valley area is the 84-year-old Second Street bridge over Cold Spring Creek in Whitehall Township. It costs $3.8 million.

But in coming years, the Valley area's bridge jobs will pick up. Act 89 is allowing PennDOT to restart long-mothballed expansion plans such as the widening of Route 22 and improving the Fahy Bridge over the Lehigh River in Bethlehem.

"Without Act 89, none of that would happen," said Becky A. Bradley, executive director of the Lehigh Valley Planning Commission. "Put some lines under that [statement], bold it or put it in flashing lights. It is that important, Act 89."

An additional $207 million in Act 89 funds will be distributed to mass transit agencies by the end of the year, PennDOT records show.

The Lehigh and Northampton Transportation Authority is leveraging the new state money with federal money to buy three buses and 15 vans for its Lehigh Valley service this year.

"We've seen our operating funds in much better condition than they were prior to Act 89, and we should be financially sound for the next five years," LANTA Executive Director Armando Greco said.

The state's largest mass transit agency, SEPTA, which operates in Philadelphia and its suburbs, on Wednesday issued a $55.5 million public bid to replace a 119-year-old, 1,000-foot-long, 100-foot high passenger rail viaduct over a Delaware County creek. The crumbling viaduct was often used as a news conference staging ground to drum up support for the Legislature to pass the funding package.

The viaduct would not have been fixed without Act 89, SEPTA Deputy General Manager Jeff Knueppel said. If Act 89 did not pass, he said, SEPTA was planning to curtail or close several regional rail lines in the city and suburbs.

"Act 89 has given us a future," Knueppel said.

The bill's dreaded gasoline and diesel fuel tax increase to pay for the transportation upgrades is less obvious than critics feared thanks in large part to the worldwide drop in crude oil prices.

"We've said it all along," Schoch said. "What price you pay at the pump is affected more by the cost of a barrel of crude, cost of refining and getting it there [to the gas station] rather than the taxes. No one believed that."

The law eliminated a 12-cent consumer tax and raised the millage on a oil franchise tax, which wholesale distributors pay. The fear among lawmakers was wholesalers, such as Wawa, Sheetz and Sunoco, would pass most or all of that tax onto consumers at the pump. They did pass some of it along, but how much is unknown due to private pricing data held by the wholesalers.

Between January and May, the state's average consumer gas price rose 27 cents to $3.78 a gallon, according to AAA. Diesel prices went up 12 cents to $4.22 in that time. In June, prices started falling. As of Thursday, the average prices were $2.85 for regular gasoline and $3.57 for diesel.

Pennsylvania was smart and lucky to act when it did, said Patrick DeHaan, senior petroleum analyst at gasbuddy.com. Although gas prices are dropping, Pennsylvania still collects the same amount of taxes because it's based on a straight monetary value as opposed to a sales tax percentage, he said.

"It would have been impossible to see this big slide in prices coming," DeHaan said.

In November, the state collected $204 million in taxes, $10.5 million more than estimates, for the Motor License Fund, which includes gas and diesel taxes, license, fine and fee increases, state Revenue Department records show. That pushed the fund's annual tax collection to more than $996 million, which is $13.8 million, or 1.4 percent, above estimates.

Sen. John Rafferty, R-Montgomery, chairman of the Senate Transportation Committee, said several people have asked him in if he knew gas prices would fall. Absolutely, he quips.

Even with gas prices falling, work continues.

None of it would have occurred without Schoch's leadership, said state Rep. Mike Schlossberg, D-Lehigh, the only member of the Lehigh Valley's House delegation to support the funding bill. The Legislature would not have approved the bill if not for Schoch's ability to negotiate and rattle off statewide and regional statistics about roads and traffic, he said.

"Barry Schoch was brilliant," Schlossberg said.

Corbett deserves credit for hiring Schoch, added Gene Barr, president and CEO of the Pennsylvania Chamber of Business and Industry.

"I've been in this business a long time," Barr said. "I don't think I've ever seen a secretary work harder to get a bill passed."

Gov.-elect Tom Wolf would be wise to keep Schoch as transportation secretary, Schlossberg added. Schoch said he'd be willing to talk to Wolf about the position, but so far has not been approached. No decisions have been made, Wolf spokesman Jeffrey Sheridan said.

The passage of Act 89 was government at its finest because Democrats and Republicans compromised, Schlossberg said. Democrats dropped opposition to reducing construction workers' pay by not mandating they receive regional union-scale wages on local transportation projects budgeted at $100,000, he said. Republicans dropped opposition to a tax increase, he said.

"People walked away happy with the overall plan, but a little upset over some of the details," Schlossberg said. "But that's the way you are supposed to govern."

The transportation funding fight that Harrisburg saw in 2013 could resurface in counties next year, when Act 89 allows them to place a $5 surcharge on vehicle registration fees to raise money for county owned road and bridge repairs.

steve.esack@mcall.com

Twitter @sesack

717-783-7305

ACT 89 BY THE NUMBERS IN 2014

$1.5 billion in new revenue for roads and bridges

$207 million for mass transit

$60 million for local transportation projects, ports, rail freight and aviation

1,696 miles of road resurface and repaved

83 bridges fixed or under construction.

Source: Pennsylvania Department of Transportation

Copyright 2014 - The Morning Call (Allentown, Pa.)

Source: Mass Transit

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