Rendell's plan for fee increases faces uphill fight

Published: September 2, 2010

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Gov. Ed Rendell's recently proposed schedule of fee increases for driver's license and vehicle registrations did not cause the Republican-dominated Senate to go screaming into the night. In Harrisburg, that is progress towards a consensus on how to fill a yawning, $472 million hole in the state budget resulting from the failed effort to establish tolls on Interstate 80.

The 70 proposed fee increases, across the broad spectrum of registration and license classes, would generate about $434 million a year, according to the governor's office.

Increases would be significant and would be felt by individual motorists and companies. But, for the most part, they represent the first increases in most fees in a minimum of 13 years and, in some cases, for up to 30 years. The increases are calculated to match the increases in inflation that have occurred since the last time each fee increased.

The largest vehicle class is passenger cars, for which annual the annual registration fees would climb to $49 from the current $36, producing $100 million a year in revenue. Truck registration increases would produce another $100 million. Other rising fees include: the four-year driver's license fee of $28 going to $32 and a certificate of title fee going from $22.50 to $31.

Fee increases are among the fairest way to ensure that the costs of improving highways and bridges are spread as fairly as possible. Another is through a modest gasoline tax increase, which is not on the table, even though a final tax package might include a modest increase in the tax on the wholesale price of oil products.

Such increases always are unwelcome among hard-pressed residents, but they also must be weighed against the vast economic costs of neglected infrastructure and the impact of inflation on making the repairs while the fees have remained stable.

The issue is not whether to increase the revenue for infrastructure safety; it's how to do so as fairly as possible. The fee increases are a good step that lawmakers should approve. There was some limited support in the legislature, but right now it doesn't look like the proposals will get a majority of the 203-member House or the 50-member Senate before the November elections.

Legislators, including those from Bradford County: Reps. Tina Pickett and Matt Baker, as well as Sen. Gene Yaw, ought to get behind the governor's concept and urge their colleagues to get on board as well.

It will be an uphill struggle. Consider the following, reported by The Pittsburgh Post-Gazette.

House Republican Whip Mike Turzai of Bradford Woods said, "I don't think it's realistic that the governor's plan will be passed by Nov. 2. A lot of people [in the Legislature] want to wait and start anew with the new governor" who takes office in January.

Mr. Turzai said higher taxes and fees "should be a last resort," and before such action is taken, "We need to look at how PennDOT can be more efficient with the $7 billion in federal and state funds it already spends." He also said transportation "reforms" are needed, such as opening up public transit in Allegheny County to other public or even private transit agencies, rather than letting the Port Authority have a monopoly, as state law now gives it.

Even Democrats have doubts. "We have to ensure safe roads and bridges, but I don't think most of the General Assembly will be inclined to vote for tax or fee increases before the election," said Rep. Bill Kortz, D-Dravosburg. "It's a real roll of the dice. People will look at those [higher vehicle] fees as tax increases."

On the other hand, there is hope. Kortz said the Rendell plan "is a good way to start the debate. I want to hear more about it. We have real safety issues at stake and we can't sit back and do nothing and have bridges fall down."

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