Governor Ed Rendell says Pennsylvania needs new revenue sources to overcome a shortfall in transportation funding.
The governor says the idea that raising revenue in an election year will hurt legislators’ chances for reelection is “overrated.” Rendell pointed to the fact that he was reelected after raising taxes during his first term.
Rendell says one way to replace income expected from tolling Interstate 80 is to raise vehicle licensing fees. He says these rates haven’t been raised since 2002 and if they are adjusted to the level of inflation, the fees would generate $320 million more each year.
He says that would replace about two-thirds of the anticipated revenue when the federal government rejected Pennsylvania's application to toll I-80.