METRO Magazine Logo
MenuMENU
SearchSEARCH

Pennsylvania may tax oil companies to fund transit

Gov. Edward Rendell has proposed a 6% profit tax on oil companies to help fill the funding gap for transit in the state.

by Darin Youker
May 11, 2007
2 min to read


Pennsylvania public transit systems are in a crisis over a lack of state funding. State officials want to solve the problem with an unusual solution — taxing oil companies.

Gov. Edward Rendell proposed a 6% profit tax on oil companies doing business in Pennsylvania.

Ad Loading...

The tax would be used as operating revenue for the state’s 70 public transit systems. The tax would generate approximately $760 million a year for transit, according to state estimates.

Currently, Pennsylvania pays for transit through money from sales tax, lottery proceeds and operating subsidies. Last year, lawmakers cut subsidies by 6%, forcing some systems to run a deficit.

Managers of transit systems are left guessing as to how much they will receive annually from the state, said Dennis D. Louwerse, CEO of Berks Area Reading Transportation Authority (BARTA), a bus system serving the Reading area.

Louwerse, who also chairs the board of directors of the Pennsylvania Public Transportation Association, adds that bus systems in the area are often left scrambling to find money to meet rising fuel and health insurance costs.

In January, the lack of state funding forced BARTA to raise fares by 10% and cut back some routes. A new source of state revenue would allow systems to meet costs and forecast budgets without making dramatic fare hikes, he said.

Ad Loading...

“Transit funding in Pennsylvania is broken,” Louwerse said. “It needs to be fixed, and it needs to be fixed now.”

John Paul, executive director of the Butler Municipal Transit Authority, said Rendell’s proposal would face a legislative fight, especially from lawmakers opposed to new taxes. However, he believes that the idea makes sense because oil companies have made record profits in recent years.

Michael Johnston, director of the Town and Country Transit in rural Armstrong County, said that Rendell’s proposal would likely win over lawmakers, because people are fed up with high gasoline prices. He also feels that taxing oil company profits would be a popular move. “Honestly, who is going to say we need to give more money to the oil companies?” he said.

Topics:Management
Subscribe to Our Newsletter

More Management

FlixBus vehicles in a parking garage.
ManagementApril 13, 2026

Intercity Bus Industry Outlook: A Mix of Apprehension & Optimism

Industry leaders see both promise and peril ahead as intercity bus travel rebounds, but unpredictable market forces threaten to reshape the sector.

Read More →
Ribbon cutting photo celebrating SEPTA's new Ardmore Station
Railby StaffApril 13, 2026

Philadelphia's SEPTA Celebrates New Ardmore Station

The station was rebuilt as part of SEPTA’s Station Accessibility Program, making it fully ADA accessible with new elevators, ramps, and high-level platforms.

Read More →
Passengers in crowded SEPTA station
Managementby StaffApril 10, 2026

SEPTA Releases Proposed $2.7B Fiscal Year 2027 Budget

The plan represents an increase of just 1.9% over the current year, and includes investments in new buses, more full-length fare gates, and other enhancements for customers.

Read More →
Ad Loading...
Two Metra locomotives on rail tracks.
Railby StaffApril 10, 2026

Metra Reaches New 10-Year Agreement with BNSF

The announcement highlights the long-standing partnership between the Class I railroad and the commuter rail system, dating back to Metra's creation in 1983.

Read More →
Cover Photo for Bus Tech Talk
ManagementApril 9, 2026

Bus Tech Talk: AC Transit’s Cecil Blandon on Leadership, Mentorship, and a Career in Transit

In Part 1, Blandon shares his journey from the U.S. Marines to a leadership role in public transit, along with insights on mentorship and professional growth within the industry.

Read More →
METRO Buyer's Guide art
Managementby Staff and News ReportsApril 8, 2026

Last Chance: Be A Part of METRO's Annual Buyer’s Guide

The revamped Buyer’s Guide will reach METRO’s audience of more than 17,000 print and digital subscribers, providing suppliers with year-round visibility in front of transit agency leaders, motorcoach operators, and industry decision-makers across North America.

Read More →
Ad Loading...
A blurry TransLink R2 rapid bus
Managementby StaffApril 8, 2026

Vancouver's TransLink Fast-Tracks RapidBus Line to Metrotown

Funded through the 2025 Investment Plan, the new R2 Marine–Willingdon RapidBus is expected to begin service in September, more than three months ahead of schedule.

Read More →
A Metra train on the rails
Railby StaffApril 8, 2026

Metra Reveals 2026 Construction Program

In addition to new projects, progress continues on a multiyear effort to upgrade track, electrical, and signal systems on the Metra Electric Line to accommodate the expansion of service on the South Shore Line.

Read More →
Image of Snapdragon Stadium with text reading "Moving Stadium Crowds: Are You Prepared?"
Managementby Elora HaynesApril 8, 2026

What It Really Takes To Move a Stadium Crowd

Behind every sold-out game is a transit playbook built on data, partnerships, and precision timing to move thousands of fans. Here’s how agencies make it work.

Read More →
Ad Loading...
Governor Moore speaking at Maryland light rail station
Managementby StaffApril 7, 2026

Governor Advances Transit-Oriented Development in Baltimore

The Maryland Transit Administration is advancing the nearly $1.4 billion Light Rail Modernization Program, which modernizes the Baltimore Central Light Rail Line from Hunt Valley to BWI Thurgood Marshall Airport with new, low-floor vehicles and upgrades to all light rail stations, systems, and maintenance facilities.

Read More →