UNITED WE STAND

The page you are viewing was Last Updated on:  Tuesday, December 26, 2000

PLAN H DETAILS

   Progress on the Mon Valley/Fayette Expressway and Southern Beltway is a direct result of innovative funding provided through a 1991 increase in the State Oil Franchise Tax and a 1997 increase in State vehicle registration fees.  Funding totaling $70 million per year from these sources is available to support bonds for construction.  In combination other funding, $1.2 billion is currently available to advance these crucial projects.  Expressway construction currently underway, supported by this funding, is bringing hope to a region that has suffered tremendous economic dislocation.

    By the end of 2001, a total of 35 miles or over one-half of the 65-mile expressway project will be completed.  While planning and engineering to advance the PA-51 to Pittsburgh and Brownsville to Uniontown expressway projects and the Findlay Connector of the Southern Beltway will continue, funding is not in place at this time for construction of these projects.  It should be noted that funding in place will also support acquisition of land for the PA Route 51 to Pittsburgh and the Brownsville to Uniontown sections.

    TEA 21 also provides a major opportunity to secure additional funding for these projects.  As a result of the passage of TEA 21 and a 1997 increase in state gas tax and registration fees, annual highway funding in Pennsylvania increased by 47% over prior funding levels.  TEA 21 authorizes $1.3 billion in highway funding on an annual basis to Pennsylvania, which is $400 million per year over prior funding levels.  This additional funding creates a unique window of opportunity that we should seize to complete this crucial highway network.

    Provided below are unofficial estimates for the three Expressway and Beltway sections that are targeted by the Pennsylvania Turnpike Commission and the Governor as priority projects for the Expressway/Beltway projects:

    Based on current bond market conditions, an annual set-a-side of $106.6 million of federal transportation funding could support $1.280 billion in construction costs.  This amount with toll revenues available for construction costs would support construction for these three sections.  It is important to note that up to 25% of the construction costs of the PA-51 to Pittsburgh project could be covered by net toll revenues (less operations and maintenance) for this section of the expressway project.

    Plan H proposes that the Commonwealth of Pennsylvania enter into a joint effort with the PA Turnpike Commission to implement a financing strategy for the Expressway and Beltway projects to allocate $106.6 million per year for twenty years from federal highway funding to the Commonwealth of Pennsylvania to support bonding of construction cost for the two remaining sections of the Mon-Fayette Expressway and the Findlay connector of the Southern Beltway.  If additional state funding or other sources of direct funding become available, the requested level of annual funding under Plan H could be reduced proportionately.