PennDOT says $800M in federal aid needed to keep non-critical projects rolling

Facing a drop in gas tax revenue from fewer motorists driving at a time when the Pennsylvania Turnpike won’t turn over more than $100 million due in July, PennDOT might delay noncritical bridge and highway projects if the state does not get $700 million to $800 million in covid-19 federal aid this summer, agency officials said Tuesday.

While critical projects in the pipeline and under construction will move forward as restrictions on construction activities are lifted, a lack of funds will impact programs on multiple levels, PennDOT Acting Secretary Yassmin Gramian said. Design work on projects would continue, Gramian said.

Agency leaders “are very concerned about the health of our funding” for fiscal year 2020-21, she added.

The gas tax revenue for April dropped about 30% because more motorists are staying home, and the motor license fund has decreased as well, Gramian said.

“We are preparing for the best-case and worst-case scenarios,” Gramian said.

The state is relying on Congress to approve $50 billion for state transportation departments. The American Association of State Highway and Transportation Officials called the money “backstop funds” that should be treated as state revenue to compensate for losses, rather than a regular transportation allocation from the federal government.

If Congress approves the request, Gramian expects Pennsylvania would receive $700 million to $800 million this federal fiscal year, which ends Sept. 30, plus another $1.3 billion in the next fiscal year starting Oct. 1.

Added to the financial woes is that the state agreed to forego a Pennsylvania Turnpike Commission payment of about $112 million in July because of its own drop in revenue resulting from a “drastic drop in traffic,” Gramian said. The turnpike commission’s mandated $450 million annual payment to PennDOT is divided into quarterly payments.

If the turnpike also gets funding from the CARES Act, Gramian said the state’s mass transit agencies will get an allocation.

When Gov. Tom Wolf lifts some restrictions in the 10 counties lumped together in the southwestern region, drivers’ license centers in those counties will be able to reopen on a restricted basis, said Kurt Myers, deputy secretary for driver and vehicle services.

The initial emphasis will be serving new drivers seeking learner’s permits and operating licenses. Since the federal government extended the deadline for Pennsylvanians to obtain a REAL ID until Oct. 1, 2021, those services will not be offered until late summer, Myers said.

Online vehicle registration is an option, but Myers is expecting a surge in demand for service when centers reopen.

“We do 20,000 to 25,000 transactions a day, but we’ve been closed since March 16,” Myers said.