Pennsylvania Office of the Governor News

Pennsylvania Governor Rendell Says New Budget Promotes Economic Development; Improves Safety for Bridges, Dams, Rail, Aviation

HARRISBURG, Pa., July 4 PRNewswire-USNewswire — Despite a struggling national economy, Pennsylvania is aggressively tackling bridge repairs, water and sewer infrastructure, high-hazard dams and outmoded rail and aviation facilities with investments in the 2008-09 commonwealth budget that Governor Edward G. Rendell signed today. The budget agreement includes nearly $2 billion in investments for these critical areas, which address problems that were decades in the making and will put thousands of Pennsylvanians to work.

"Working with legislative leaders of both parties, we hammered out a far-reaching compromise that propels Pennsylvania forward in tough economic times," Governor Rendell said. "Fixing deteriorating bridges, dams, rail, and aviation facilities means better service for the people of Pennsylvania and an immediate economic boost because it will put people to work and boost the economy with robust orders for construction materials like steel and concrete.

"This is good for our state and great for Pennsylvania working families," the Governor said. "These projects will make Pennsylvania a better and safer place, even as we spur economic development and provide new jobs for our citizens."

Infrastructure investments in the budget include:

— $1.2 billion for water and sewer infrastructure improvements;

— $800 million in Redevelopment Capital Assistance Program funding;

— $350 million in new state funding to help repair more than 400 of the state's worst bridges; and

— $15 million in additional funding for airports and rail freight facilities.

REBUILDING BRIDGES

Under Governor Rendell's Rebuild Pennsylvania program, a combination of federal and state funds, including $350 million in bond funds, will underwrite bridge projects that will be included in the state transportation improvement program. The combined funding will allow PennDOT to start repairs on 411 bridges this year.

"Since I took office, we have nearly tripled the amount of money available for bridge contracts," Governor Rendell said. "Funding in this budget will take us even further in our long-standing goal to dramatically cut the number of structurally deficient bridges in Pennsylvania."

Despite increased funding, Pennsylvania leads the nation with more than 6,000 structurally deficient bridges, which, while safe, are in need of maintenance to avoid being closed or posted with weight restrictions.

At Governor Rendell's direction, PennDOT will speed the improvement process by:

— Maximizing use of design-build contracting, where one bid covers both aspects of a bridge project;

— Grouping bridge contracts by similar bridge type and by geographic area to maximize contractor competition, capability and construction efficiency;

— Emphasizing rehabilitation projects that require the least lead time;

— Adopting streamlined design, utility and right-of-way procedures;

— Using smart transportation principles to ensure that designs are efficient, cost-effective and fit within the community; and

— Using 100-year design life for all replacement projects.

IMPROVING AVIATION AND RAIL FACILITIES

The budget doubles the aviation grant program to $10 million and will underwrite more airfield safety improvements, hangar construction and terminal improvements, all of which improve accessibility, spur economic development and provide improved customer service and safety.

The Rail Transportation Assistance Program will increase $10 million to $30 million and it will include $3 million for the preservation of railroad bridges. The remaining funds will be used to construct and reestablish rail lines, preserve existing rail lines, improve safety and add new capacity.

Total funding available for rail has tripled under Governor Rendell. Rail freight investment entices economic development and promotes an environmentally and fuel-friendly alternative to moving goods through the commonwealth.

INVESTING IN SAFE WATER

A historic investment of $1.2 billion will be made in the new budget to upgrade Pennsylvania's drinking water and wastewater facilities, support projects that protect communities against dangerous floods, and rehabilitate unsafe, high-hazard dams. Up to $800 million will be made available for dam, flood protection, water and sewer improvements. Voters will decide in November whether to make another $400 million available through a bond referendum to support additional improvements to the state's water and sewer systems.

More funding than ever is available in this budget to address unsafe, high-hazard dams across the state. With the addition of local matching funds, these dams, as well as other structurally deficient high-hazard dams, will be eligible for rehabilitation work.

Flood protection funding will allow an increase in grants awarded to municipalities, boost support for stream improvement projects and complete emergency closure work and rehabilitation projects. Separate legislation was enacted that will allow the Department of Environmental Protection to pursue nonstructural flood prevention projects - something it is unable to do under existing statutes.

This year's budget also includes $27 million for the Infrastructure Facilities Improvement Program (IFIP) to help prepare sites for job-creating private-sector investments.

Graphics, budget highlights and additional details about the 2008-09 state budget are online at www.budget.state.pa.us.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit www.governor.state.pa.us.

CONTACT:

Chuck Ardo

717-783-1116

SOURCE Pennsylvania Office of the Governor

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