USTIF Issue Talking Points:

At a time when consumers are being hit hardest at the gas pump by ever-increasing prices, the last thing the Rendell Administration needs to do is to increase this burden by imposing any increase in Pennsylvania's gas tax.
The proposed fee increase by the Insurance Department and the USTIF Board would equate to over $50 million in increased gas taxes paid by motorists annually.
The severity of the fiscal crisis facing the USTIF fund is not completely clear, but in any event the potential deficit is something that could occur many years in the future. Even the Milliman report commissioned by the USTIF board states " …no change in fees is necessary as the projection shows USTIF having positive Cash and Invested Assets through the middle of the July 1, 2015-2016 fiscal year". That certainly calls into question the wisdom and practicality of imposing a fee increase now when gas and oil prices are at record levels.
We're equally disturbed over the manner in which the Administration is trying to get this gas tax increase passed. It seems irresponsible and insensitive to pass this tax increase through a regulation process by boards that are not accountable to the voters and without full disclosure and public input.
If this gas tax increase is truly essential, then at a minimum, there needs to be an open dialogue and justification presented to the public. That hasn't happened and, in fact, the Administration is using a stealth approach to get this tax increase approved by bypassing the public comment period.
The Senate Banking and Insurance Committee, intends to convene the committee next week to consider a vote to disapprove this gas tax increase. At a minimum, the Committee's rejection of the gas tax increase will delay its implementation and give the public an opportunity to understand just exactly why the Administration needs to impose this $50 million gas tax increase.
We will also explore all possible options to prevent Rendell administrations unnecessary gas tax increase on the motoring public from occurring without input from the General Assembly and just as importantly, the public as well.

Contact:

Joe Pittman
(717) 787-8724, cell (724) 541-0552