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Transportation funding in Pennsylvania comes from both federal and state sources, with the majority coming from gas taxes as well as driver and vehicle fees. The revenue from this funding is generally split between three uses: highways and bridges, multimodal transportation (transit, airport, port, freight, etc.), and debt service and other agencies. Of the total revenue, 62% of it goes to highway and bridge maintenance and improvements.
With traffic and freight travel growing, our funding needs for maintaining highways and bridges have continued to grow. As of today, the annual funding needed to support our highways and bridges is approximately $15 billion. However, we only have about $6.9 billion to spend annually, leaving an $8.1 billion gap. We have less than half of what we need to provide the highway and bridge network Pennsylvania deserves.
Despite our growing traffic and freight travel, the funds available to maintain highways and bridges have not kept pace. There are several factors that have caused this funding gap, and risks that may increase it. The state and federal gas tax is responsible for 74% of our highway and bridge revenue, but due to increasing fuel economy and that the gas tax has not kept up with inflation, the funding is shrinking. Our funding gap is also growing because a significant amount of our infrastructure was built between 1950 and 1980. The expected life of these bridges is about 70 years, meaning the investment they need is growing as well.
Of all the transportation systems that we manage, our highways and bridges are responsible for 86% of PennDOT's annual funding shortfall. We have a $15 billion need annually, but only have $6.9 billion. We have less than half of what we need. We maintain over 40,000 miles of highways and over 25,000 bridges, but the annual funding needs currently exceed our budget by $8.1 billion. A significant amount of our infrastructure was built between 1950 and 1980. The expected life of these bridges is about 70 years, meaning the investment they need is now. On top of that, some of these bridges and highways are in poor condition and require extensive reconstruction or replacement.
Our largest funding sources for highways and bridges are our federal and state gas taxes. About 74% of the funding for highways and bridges comes from these gas taxes. In addition, we also depend on the Federal General Fund. These funding sources are at risk. As vehicles become more fuel-efficient, money collected from gas taxes is reduced. Gas taxes have not historically been tied to inflation, and federal gas tax still isn't, which means the revenue generated doesn't buy the same amount of concrete and asphalt it used to. The federal gas tax, for example, hasn't been raised since 1993 – 27 years! The average cup of coffee cost $0.75 in 1993, and now is about $1.65. Additionally, funding from the Federal General Fund is unpredictable. Because the federal gas tax has not increased, its funding has not kept up with its obligations, and Congress bails it out each year. This year, the bailout was $13.6 billion. To sustain this, Congress must agree to this level of funding each year.
Act 44 in 2007 and Act 89 in 2013 required the PA Turnpike Commission to make yearly $450 million payments to PennDOT; these payments will be cut back to $50 million in fiscal year 2022-2023. While these measures increased our annual funding by $2.3 billion, unfortunately, it is still not enough to cover our state's transportation needs.
The passage of Act 44 in 2007 and Act 89 in 2013 raised revenue for our transportation system which helped fund repairs on many highways and bridges, but there are still many unfunded needs as demonstrated by the current $8.1 billion highway and bridge funding gap. Today, 10% of the state-owned bridges are classified as being in poor condition.
Congestion and poor road conditions create costs for roadway users, both for residents and visitors. First, maintaining bridges and roadways in a state of good repair is critical for user safety. Rough and uneven pavement can also lead to more spending on gas and vehicle maintenance, up to $548 each year, assuming our commutes are on average 30 miles per day. Congested roadways lead to wasted time and additional gas. In more congested Pennsylvania cities, commuters lose about 62 hours each year just sitting in traffic and spend an additional $65 on gas.
Just as many Pennsylvanians have experienced firsthand with their personal budgets, COVID-19 has also impacted PennDOT's highway and bridge budget. We estimate that, as of September 2020, the pandemic has contributed to highway and bridge revenue losses of between $500 and $600 million. These losses can be mostly attributed to fewer people driving which means lower gas tax and vehicle registration revenue.
While there is reduced vehicle, traffic caused by COVID-19, we are still the Keystone State, which means our interstates act as lifelines for goods coming from the south to north and from the west coast to east coast. Even with fewer Pennsylvanians traveling, it's important that we ensure our transportation system is safe for our country's supply chain and for the millions who still use our roads and bridges.