By Charles E. Greenawalt II Ph.D.

The United States first declared independence in the Pennsylvania State House in Philadelphia in 1776. In 2007, the independence of America's drivers to hit the open road, and for American commerce to move over our highways, was again declared in the Pennsylvania State House (and Senate) with the passage of Act 44, an innovative idea that leads the way to the future of transportation funding in our country.

For decades, our federal and state governments have relied on the gas tax to build, maintain, and expand our highway system. But, with more fuel efficient vehicles and high gas prices forcing driving cutbacks, this funding source no longer gets the job done.

We were brutally reminded this job must be done better by the I-35 bridge collapse in Minnesota one year ago this month. We must rebuild our country's aging highway and bridge infrastructure before any more tragedies occur. This is also vital for moving the nation's goods, which go principally by truck, and for the summer vacations we all treasure that support our tourism industry.

Pennsylvania has answered this challenge by passing Act 44, which creates a unique public-public partnership between the Pennsylvania Turnpike Commission and the Pennsylvania Department of Transportation. This partnership has already committed, in its first five quarterly payments since July, 2007, $970 million to the state's transportation needs. This money comes from the Turnpike Commission, which has successfully managed the nation's first superhighway since the Pennsylvania Turnpike opened in 1940. The Commission generates this funding through its tolls and by borrowing at low rates against future toll revenue.

This forward looking plan will go even farther to pay for critical transportation needs if Washington will approve the rest of the proposal. That part of the plan, which would install an open road tolling system on Interstate 80's 311-mile route through Pennsylvania, now sits on the desk of U.S. Transportation Secretary Mary Peters. Upon her approval, the Turnpike Commission would take over management of I-80 in Pennsylvania and generate another $470 million a year for the state's transportation needs. Notably, when I-80 was constructed, it was intended to be a toll road.

Congress and the Federal Highway Administration, recognizing the gas tax would not get the job done anymore, created a series of pilot projects to spur states to develop innovative funding solutions for transportation infrastructure. Pennsylvania through Act 44 has done this more aggressively than any other state. We have a law authorizing tolling of I-80, and an agency with a proven, seven-decade track record of running a toll road in place.

This cutting edge funding plan passes all the crucial tests for the federal pilot program, and paves the way for future revenue-raising ideas. The plan is inflation sensitive, building in toll hikes to match inflation and thus providing money needed each year for highway and bridge work, without gouging drivers. It moves Pennsylvania away from heavy reliance on the gas tax. It fairly distributes the burden of paying for major road work among a greater percentage of state drivers, with both the Turnpike and I-80 being tolled. By committing $2.5 billion over the next decade to the rebuilding of I-80 and the addition of new interchanges, it guarantees significant investment in the state's two key east-west highways. And, this plan reflects the thinking of most transportation experts who believe tolls and vehicle miles traveled will be the principal funding source for transportation infrastructure in the future.

If I-80 tolls are approved, fully 45 percent of Pennsylvania's interstate highway system will be self-funded through toll collection, and 45 percent of our interstate system will benefit from full reconstruction programs without any funding from either federal or state gas taxes.

Not only does Act 44 provide better highway and bridge funding, it also establishes, for the first time, a stable funding source for Pennsylvania's numerous mass transit agencies. Previously, mass transit had to beg the Legislature each year for money, making long-range planning impossible, as agencies never knew from year to year what the state commitment would be.

The Minnesota bridge collapse tragedy and $4 a gallon gasoline has made us take a hard look at our transportation future. Our states and Congress have been challenged by these circumstances to come up with innovative ways to pay for much needed highway repairs, bridge work, and mass transit. Pennsylvania has begun to answer these challenges.

(Charles E. Greenawalt II, Ph.D., is Senior Fellow with The Susquehanna Valley Center for Public Policy.)