COMMONWEALTH OF HOUSE OF REPRESENTATIVES

APPROPRIATIONS COMMITTEE BUDGET HEARING

DEPARTMENT OF TRANSPORTATION

STATE CAPITOL HARRISBURG, PENNSYLVANIA ROOM 140, MAJORITY CAUCUS ROOM

WEDNESDAY, FEBRUARY 22, 2017 3:00 P.M.

BEFORE: HONORABLE STANLEY SAYLOR, MAJORITY CHAIRMAN HONORABLE JOSEPH MARKOSEK, MINORITY CHAIRMAN HONORABLE HONORABLE JIM CHRISTIANA HONORABLE SHERYL DELOZIER HONORABLE GEORGE DUNBAR HONORABLE HONORABLE HONORABLE HONORABLE HONORABLE HONORABLE WARREN KAMPF HONORABLE FRED KELLER HONORABLE HONORABLE NICK MICCARELLI HONORABLE HONORABLE MIKE PEIFER HONORABLE JEFF PYLE HONORABLE MARGUERITE QUINN HONORABLE HONORABLE JAMIE SANTORA HONORABLE HONORABLE KEVIN BOYLE HONORABLE HONORABLE HONORABLE HONORABLE MADELEINE DEAN HONORABLE MARIA DONATUCCI HONORABLE MARTY FLYNN HONORABLE EDWARD GAINEY 2

1 (CONT'D.)

2 HONORABLE HONORABLE 3 HONORABLE -BRANEKY HONORABLE MIKE O'BRIEN 4 HONORABLE HONORABLE 5

6 MAJORITY NON-COMMITTEE MEMBERS:

7 HONORABLE HONORABLE CRIS DUSH 8 HONORABLE KRISTIN PHILLIPS-HILL HONORABLE 9 HONORABLE HONORABLE BRETT MILLER 10 HONORABLE ERIC NELSON HONORABLE BOB GODSHALL 11 HONORABLE HONORABLE 12 HONORABLE ROB KAUFFMAN HONORABLE 13 HONORABLE KATE HARPER HONORABLE JOHN TAYLOR 14 MINORITY NON-COMMITTEE MEMBERS: 15 HONORABLE 16 HONORABLE HONORABLE 17 HONORABLE HONORABLE MATT BRADFORD 18 HONORABLE HONORABLE JOHN GALLOWAY 19 HONORABLE MIKE SCHLOSSBERG HONORABLE BILL KELLER 20 HONORABLE

21 COMMITTEE STAFF:

22 DAVID DONLEY, EXECUTIVE DIRECTOR (R) RITCHIE LAFAVER, DEPUTY EXECUTIVE DIRECTOR (R) 23 MIRIAM FOX, EXECUTIVE DIRECTOR (D) TARA TREES, CHIEF COUNSEL (D) 24

25 TRACY L. MARKLE, COURT REPORTER/NOTARY PUBLIC 3

1 INDEX TO TESTIFIERS

2 NAME PAGE

3 LESLIE RICHARDS, SECRETARY 4 DEPARTMENT OF TRANSPORTATION 4 DAVID MARGOLIS, DIRECTOR 66 5 BUREAU OF FISCAL MANAGEMENT DEPARTMENT OF TRANSPORTATION 6

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1 ---oOo---

2 MAJORITY CHAIRMAN SAYLOR: Madam

3 Secretary, I'm going to ask you -- and Dave, if

4 you are going to testify, as well, if you would

5 rise and raise your right hand.

6 (THE TESTIFIERS WERE DULY SWORN.)

7 MAJORITY CHAIRMAN SAYLOR: Thank you.

8 I'm going to turn it over to Chairman Markosek

9 to start with any comments.

10 MINORITY CHAIRMAN MARKOSEK: Thank you,

11 Chairman. Just a couple of short comments: I

12 just wanted to chat about one item and get it

13 started. I'm sure it will come up anyway.

14 First of all, you know, you're lucky

15 this year. I guess your salt budget is in

16 pretty good shape this year, right?

17 MS. RICHARDS: Actually, if you have 30

18 seconds -- and I promised Chairman Saylor I

19 would answer everything as fairly and as quickly

20 as possible.

21 But as a surprise to a lot of people,

22 we're actually over our five-year average, as

23 far as cost this winter. While we've had a nice

24 and mild winter here in the Harrisburg area, as

25 well as southeastern Pennsylvania, I know those 5

1 of you from Erie and central and northern

2 Pennsylvania, we've had a tough winter.

3 Lake Erie did not freeze this year.

4 We've had lake-effect snows. And, of course, we

5 had multiple snow events happen on weekends,

6 which costs overtime. So we're slightly over

7 the five-year average as far as costs, but we're

8 slightly under the five-year -- a little under

9 the five-year on salt, so we are good on salt.

10 MINORITY CHAIRMAN MARKOSEK: Okay. I

11 might as well get into, you know, one of the

12 800-pound gorillas here, and that's with the

13 Motor License Fund relative to the State Police.

14 And I know the Governor has made a proposal, one

15 that I've been for or, you know, a strategy that

16 I think is only fair to try to put some

17 additional money into the State Police so that

18 we don't have to continue taking money out of

19 the Motor License Fund for that purpose.

20 I know I have a community -- my

21 hometown, Monroeville, we spend about $12

22 million a year on our local police and, you

23 know, it's taxpayers like myself that have to

24 not only pay for that, but also pay for the

25 State Police coverage in about two-thirds of the 6

1 land mass of our Commonwealth. So I just really

2 wanted to throw it out to you to get some

3 comments about that, whether that -- how you

4 feel about that particular proposal in the

5 Governor's budget and what, if anything, else

6 you are looking at to take care of the Motor

7 License Fund in such a way that, you know, we

8 would have either additional funds coming into

9 it or that we would be less dependent or the

10 State Police would be less dependent on it, and

11 any kind of strategies you have for that.

12 We raised significant revenues a few

13 years ago with Act 89. They go into the Motor

14 License Fund. And we have Act 44 still in

15 place, which raises significant revenue; but we

16 certainly need to do something to make sure that

17 the Motor License Fund is secure for

18 transportation needs.

19 MS. RICHARDS: Uh-huh. Sure. Thank

20 you, Chairman. Happy to talk about that. As I

21 have before when I've come before this important

22 body, as well as others, first of all and

23 foremost, PennDOT believes the State Police

24 provide a very important public safety function,

25 and in no way do we want to impact them in any 7

1 way that is not positive. We know that everyone

2 in the Commonwealth depends on the State Police,

3 and so we want to make sure that they can do

4 what they need to do. But we also have, you

5 know -- we have a core function here at PennDOT,

6 and that is to make sure that our transportation

7 networks are as safe as possible, as efficient

8 as possible, and that people have the mobility

9 choices that they need here for the economy to

10 function, as well as all the transportation

11 needs.

12 So what has been proposed in the

13 Governor's budget, which is the $25 per capita

14 fee for those who are receiving law enforcement

15 only through the State Police, anything that

16 keeps the State Police with a dedicated line

17 item so that they can function forward, we would

18 be interested in helping come up with ideas.

19 We did have our Technical Advisory

20 Committee, our TAC Committee, look at a variety

21 of ideas. Again, none of those ideas were

22 presented to give the idea and solve the problem

23 solely, but to add to a good, productive,

24 meaningful conversation so people understood all

25 the different options and that we're all on the 8

1 same page to get dedicated funding so that the

2 State Police can provide the function that they

3 need to.

4 I'm a former local elected official.

5 One quarter of my budget was our law

6 enforcement. And if I had been offered free law

7 enforcement, I would have taken it. And so I do

8 think there is a big incentive for that, and so

9 we need to take a look, and again, make sure

10 that people are getting the law enforcement that

11 they need, making sure that their constituents

12 and that their residents are safe, and that the

13 police and State Police can do it. And PennDOT,

14 again, stands next to the State Police in full

15 support of that.

16 MINORITY CHAIRMAN MARKOSEK: Okay.

17 Thank you.

18 MAJORITY CHAIRMAN SAYLOR: I did want to

19 recognize that we were joined by Representative

20 . Michael, welcome. Madam

21 Secretary, I didn't give you a chance to make

22 any opening statement. If you want, you may do

23 that now.

24 MS. RICHARDS: I'm happy to continue

25 answering questions. I know there's a lot of 9

1 questions here. And if there's anything anyone

2 else wants me to discuss, I'm happy to at the

3 end.

4 MAJORITY CHAIRMAN SAYLOR: Very good.

5 The first thing from me, and the only thing

6 really from me at this point, I join with the

7 Chairman with the concern over the draining of

8 our highway fund by the State Police being taken

9 out of there. I have some legislation that

10 changes that a little bit, but we'll talk about

11 that in the future.

12 One of the concerns I've had as being

13 past president of the Municipal Planning

14 Organization in York County is -- and we've had

15 some discussions with some people at PennDOT,

16 has been the issue -- we just had a discussion

17 about this a few weeks ago -- a major accident

18 on the bridge coming into Harrisburg of 83 and

19 581 there. And what I took notice to, is I've

20 seen down on 83 south, down through York County

21 and has probably happened on 81 and many other

22 major interstates, is many of these

23 municipalities off of these major highways are

24 heavily burdened and put at serious dangerous

25 risk. New Cumberland that day, Camp Hill, as 10

1 well as Lemoyne were, I mean, just gridlock.

2 These were kids walking to school, these were

3 kids going on the bus, you know, nobody really

4 activated; and that's been my concern over the

5 years, that we do not activate our Emergency

6 Services System by getting fire police out there

7 to assist.

8 Many of these towns, these red lights,

9 stop signs, whatever it may be, are not able to

10 accommodate interstate traffic, the

11 tractor-trailers, and everything else that go

12 through.

13 Is there any plans at PennDOT to try and

14 start utilizing that to benefit local

15 municipalities? These townships and small

16 boroughs just cannot handle, and I think risks

17 the lives of a lot of citizens when our

18 interstates are shut down for a period of time.

19 That day, it was probably shut down for

20 half the day. And there's been numerous times

21 that has happened in the past, but a real

22 concern I have for people living in and along

23 interstates.

24 MS. RICHARDS: Absolutely. I have good

25 news for you. So on two fronts we are dealing 11

1 with this issue: Number one, our regional

2 traffic management centers are taking a look and

3 seeing how our arterial roads and our side roads

4 to our interstates are impacted, not just after

5 an accident but during peak times, and what we

6 can do.

7 And the best piece of news is that for

8 the first time ever, PennDOT has offered to

9 municipalities to maintain and operate their

10 signals. Every signal in Pennsylvania is

11 operated and maintained by the local

12 jurisdiction, which you can image when you have

13 a long roadway having 11 or more jurisdictions

14 within a few miles of each other, as you know,

15 Pennsylvania has many municipalities and

16 boroughs; it's confusing.

17 And even at the Regional Transportation

18 Management Center, if we can look at it all; but

19 if we can't control it together, it's a problem.

20 So for the first time ever, we have proposed a

21 project. It's starting in southeastern

22 Pennsylvania. We're looking at the I-76

23 corridor, which is the most congested corridor

24 here in the state. And in addition to some ITS

25 solutions where we're doing hard shoulder, 12

1 running variable speeds; we're doing dynamic

2 lane changes; we are working with the Transit

3 Agency getting people over, letting them know

4 how many parking spaces there are at the transit

5 station, as well as when the next train is.

6 We are also looking at the corridors

7 that run parallel and making sure that all of

8 their lights are now being managed by one

9 entity, which is PennDOT, and that's out of

10 Region 6.

11 And we plan -- it's going to be

12 successful. I assure you it is going to make a

13 big improvement. And then we'd like to take

14 that and use it in other areas across the state,

15 and I-81 and I-83 would definitely be the first

16 ones, after this initial pilot, that we would

17 take a look at.

18 MAJORITY CHAIRMAN SAYLOR: And I would

19 suggest, you know, activating the fire police in

20 these municipalities who would help keep traffic

21 moving. Again, I just could not believe what I

22 saw that day. And other times when I've been on

23 Interstate 83 and that was shut down, like

24 what's been happening in, like, Loganville and

25 Shrewsbury and along different places along 13

1 Interstate 83. And I know it's not just 83,

2 because many of our other highways, as you

3 mentioned, 76; so I just think we need to use

4 the tools we have out there with volunteer

5 firefighters and fire police, to help us protect

6 the safety of our citizens in these individual

7 townships and boroughs.

8 So with that, I'll turn it over to

9 Representative Ortitay.

10 REPRESENTATIVE ORTITAY: Thank you, Mr.

11 Chairman. Good afternoon. Madam Secretary, Act

12 89 increased Turnpike funding from about 90

13 million in 2012 to a projected -- about 170

14 million for this coming year.

15 These funding items support the debt

16 service for capital costs for them on Fayette

17 expressway and the southern beltway, which runs

18 through my district -- or will run through my

19 district.

20 Can you provide the Committee with an

21 update on these projects?

22 MS. RICHARDS: As you know, we are -- we

23 took another look at our capital projects at the

24 Turnpikes, and we're also dealing with some

25 interesting issues right now with the bridge 14

1 being down between Pennsylvania and New Jersey.

2 We're always monitoring, but we did not see a

3 need to stop anything; so everything is moving

4 forward right now in a healthy financial

5 progression, and so all of the projects are

6 still moving forward.

7 I know the phases, the environmental

8 phases, as well as, the design and construction

9 phases are still on track.

10 REPRESENTATIVE ORTITAY: For the

11 southeastern beltway, are they still on pace for

12 their completion date? I think they said the

13 end of 2019.

14 MS. RICHARDS: It's still on the books,

15 and obviously I can have the engineer from the

16 Turnpike follow up with you with all the

17 details. While I do sit on the Turnpike

18 Commission, I'm not in charge of the maintenance

19 and operation; but I can tell you that

20 everything is on schedule.

21 REPRESENTATIVE ORTITAY: All right.

22 That's good, because I know we're looking at a

23 couple different industrial developments along

24 that road. So if it's still on pace, we're in

25 good shape. Thank you. Thank you, Mr. 15

1 Chairman.

2 MAJORITY CHAIRMAN SAYLOR: I did want to

3 recognize that we've been joined also and will

4 be asking questions later, by Chairman John

5 Taylor of the Transportation Committee and

6 Representative Mr. Keller.

7 So with that, I recognize Representative

8 Bullock.

9 REPRESENTATIVE BULLOCK: Thank you, Mr.

10 Chairman. Good afternoon, Madam Secretary.

11 MS. MANDERINO: Good afternoon.

12 REPRESENTATIVE BULLOCK: I have three

13 unrelated questions for you, so I'll try to jump

14 right into it and hopefully you can keep your

15 answers as brief as possible.

16 MS. RICHARDS: Sure.

17 REPRESENTATIVE BULLOCK: The first is in

18 regards to REAL ID, and I'm sure there will be

19 plenty of other questions following mine. But I

20 was wondering if you had taken a look at what

21 the cost would be to become compliant, should we

22 find ourselves facing a situation of having to

23 become REAL ID compliant here?

24 MS. MANDERINO: Sure. The first step

25 in REAL ID is, we have to repeal Act 38 and then 16

1 we can start to have those conversations with

2 the US Department of Homeland Security. Right

3 now, it's unclear as to exactly what we would

4 have to do to become compliant. There has been

5 flexibility in other states, and we would hope

6 that we would get flexibility. So we can't come

7 up with a cost right now. But as soon as that

8 repeal happens and, of course, while that Act is

9 in place, we are not allowed to have that

10 conversation yet.

11 But as soon as that repeal takes place,

12 those are exactly the conversations we will

13 have. You know, best case scenario, we may not

14 have to do that much. Of course, it's not up to

15 us. Worst case scenario is, there will be a lot

16 of steps that we have to take and then we would,

17 you know, attach costs to each of those steps.

18 REPRESENTATIVE BULLOCK: Thank you. My

19 second question is in regards to Amtrack, and I

20 think I asked you a similar question last year.

21 I've mentioned that I have 30th Street Station

22 in my district, and I'm sure many of my

23 colleagues have other Amtrak stations in their

24 district.

25 And I was hoping you could share with me 17

1 the current funding levels in regard to making

2 those stations accessible and what steps have

3 been taken in the last year to do that.

4 MS. RICHARDS: Sure. So, right now, we

5 subsidize Amtrak for the two lines: the one

6 that goes from Harrisburg to New York and from

7 Philadelphia through Pittsburgh, and so we give

8 them $15 million for that service.

9 And we have a P3 program right now that

10 is aimed at getting the Middletown Township -- I

11 mean the Middletown station ADA compliant. We

12 have four other stations that we've been able to

13 bring into compliance.

14 You know, they are dealt with on a

15 project-by-project level; but I am very

16 optimistic now that we have figured out a P3

17 mechanism on moving forward into getting ADA

18 compliant, as well as doing it in a

19 cost-effective way. We will continue to

20 subsidize those lines; they're very important to

21 us.

22 We're looking at ways to get more

23 frequency; we're looking at ways to make them

24 more efficient and, of course, reliable. We do

25 have a benefit that a former PennDOT employee, 18

1 Rina Cutler, is in charge of, with many of the

2 stations, including 30th Street; so she's been a

3 great ally to have as we discuss that moving

4 forward. But it is a goal of ours and one that

5 we continue to work on.

6 REPRESENTATIVE BULLOCK: Great. Thank

7 you for that response. And my last question is

8 in regards to you staffing and the diversity of

9 your staff and the efforts that you have taken

10 to be a diverse staff that is reflective of the

11 Commonwealth.

12 So the total number of staff members

13 that you have and any breakdowns that you can

14 share; and, if possible, if you have breakdowns

15 in regards to management level, as far as their

16 diversity.

17 MS. RICHARDS: Okay. So our complement

18 currently is 11,525. The breakdown of that is

19 19 percent are management; 81 percent are

20 contract covered; civil service, 37 percent;

21 non-civil service, 63 percent. As far as

22 diversity, we have -- 91 percent are white and

23 9.13 percent are minority. Male, 82 percent;

24 female, 18 percent. Management, we have -- we

25 have females at 23 percent of our managers and 19

1 minorities at 7.3 percent of our management.

2 These are numbers that are getting my attention

3 and my priority. There are, if -- going through

4 all of PennDOT priorities, I have four main

5 priorities of which this is one of them and will

6 be getting a large part of my focus over the

7 next year and a half and something that we take

8 seriously.

9 Obviously, the transportation industry

10 is very male oriented. I'm only one of six

11 secretaries across the country who are female

12 right now. There's only one African-American.

13 I'm the president of NASTO, which are

14 the northeastern states from DC through Maine;

15 four out of the six are located within that

16 area, so it's really very strategic for us.

17 And we have taken the lead; we have our

18 annual conference in Philadelphia this July and

19 we are doing an entire day that is devoted to

20 diversity, where we will be organizing with

21 COMTO, the Conference on Minority Transportation

22 Officials, with WTS, the Women's Transportation

23 Seminar, with the National Black Engineering

24 Society, to make sure that we are reaching out

25 to everyone. Also, that they fully understand 20

1 what jobs are available in transportation. It's

2 not just engineers; it's accountants; it's

3 numbers people; it's legal team; it's

4 communications; a lot of different areas that

5 will allow us to reach out toward diverse

6 groups.

7 REPRESENTATIVE BULLOCK: Thank you,

8 Madam Secretary. If you can share the

9 information about that conference with us, I'd

10 appreciate that.

11 MS. RICHARDS: I would love it --

12 everyone is welcome. We would love to have you

13 there, as well as anybody else who would like to

14 be there. It should be a great conference.

15 REPRESENTATIVE BULLOCK: Okay. Great.

16 Thank you, Mr. Chairman. I have no further

17 questions.

18 MAJORITY CHAIRMAN SAYLOR:

19 Representative Helm.

20 REPRESENTATIVE HELM: Thank you, Mr.

21 Chairman. Secretary Richards, Act 89 of 2013

22 eliminated the vehicle registration sticker that

23 is currently required to be displayed on

24 registration plates effective January 1, 2017,

25 as a measure to reduce costs. 21

1 I just wondered, how have the police

2 responded to the elimination of the registration

3 stickers thus far?

4 MS. RICHARDS: So it's been one month so

5 far. What I can tell you is, 160,000 people

6 have registered online so far and about ten

7 percent have chosen -- there's also a biannual

8 option and so they can register now for two

9 years. That's the first time they've had that

10 option as well.

11 And so it's very soon. We haven't heard

12 -- no negative impact so far. It is very early,

13 and we have so far heard extremely positive

14 feedback, in that it's very -- it's easier for

15 constituents. You know, we always say they can

16 register in their pajamas now. They just have

17 to get on their computer and they don't have to

18 make an extra trip. And we anticipate on saving

19 $2 million in mailing fees alone throughout this

20 year.

21 REPRESENTATIVE HELM: Yeah, my next

22 question was about the biannual. And we just

23 wondered if you feel a lot of people will do

24 this and a lot of money will come in right now.

25 And I guess you've already pretty much seen it's 22

1 going to happen that way.

2 MS. RICHARDS: We have. And we're

3 looking at what the impact of that will be. As

4 you know, there are a lot of fees that people

5 have the option of donating to veterans, for

6 example, or making other donations when they

7 register; so we're looking at that carefully and

8 we obviously will be working with the

9 Legislature to make sure that any fees that are

10 being counted on by these organizations, that

11 they are taken into consideration as we move

12 forward.

13 REPRESENTATIVE HELM: Well, thank you.

14 I think next year you'll have a more clear

15 answer on that, after we go through a year of

16 this; but I appreciate your answer.

17 MS. RICHARDS: Yes. One month in and

18 things are going very well.

19 REPRESENTATIVE HELM: Thanks. Thank

20 you, Mr. Chairman.

21 MAJORITY CHAIRMAN SAYLOR: We have

22 Representative Dean.

23 REPRESENTATIVE DEAN: Thank you, Mr.

24 Chairman. Welcome, Madam Secretary. Good

25 afternoon. You know me and you know my 23

1 community. And one of the things I have cared

2 about from the time I ran for office was, how do

3 I make my community, an older suburban

4 Philadelphia ring suburb, safer; more walkable,

5 bikeable, drivable, ease of getting to mass

6 transit, pedestrian ways, all of those kinds of

7 things?

8 So I was delighted to be part of Act 89

9 where we added in not just a focus on cars and

10 trucks, but we recognize that there are other

11 users of our roadways and pedestrian ways.

12 So I wanted to ask you, and I think

13 you're particularly well suited to talk about

14 this because you come from decades of a planning

15 background. Could you give us an update on

16 multimodal and the investments that we're making

17 under Act 89 and elsewhere? And I sadly have to

18 connect this to a tragedy in my own area. You

19 know that recently, in recent months, we had a

20 small child struck and killed, a pedestrian on

21 roadways in my district, and a couple of years

22 ago, another child. Again, I think they were

23 investigated. I think they were terrible tragic

24 accidents, but certainly there are things we can

25 do to make our roadways safer for all those who 24

1 use it.

2 So with that lens, tell me about what we

3 can do retroactively, of course, but

4 proactively, to make our community safer. And

5 maybe with that, you could talk about PA

6 Connect.

7 MS. RICHARDS: That would be great. And

8 how many minutes do I have for that?

9 REPRESENTATIVE DEAN: And you have at

10 least three and a half minutes for that.

11 MS. RICHARDS: Okay. I'll do it

12 quickly. First of all, with Act 89, prior to

13 Act 89, we had 45 million going toward

14 multimodal grants and now we have 180 million

15 going to multimodal grants. That's broken up 78

16 million by PennDOT, the Multimodal Fund and

17 then, of course, we have 57 million going

18 through the CFA.

19 So there's money available, and we

20 actually have one grant period that just closed.

21 We have over 200 applications that came in for

22 over $200 million worth, and we have 40 million

23 to give out; so we have to really prioritize.

24 And it will be a very difficult decision for us

25 to go through all of those applications. 25

1 The pedestrian death, I remember it

2 very, very clearly. And, of course, whenever we

3 have fatality in any of our communities, it is

4 bad news and it's a tragedy. Safety comes first

5 in every single thing that we do. And so we

6 take a look at it. And I know we sent district

7 representatives out to Abington right away to

8 see what we could do, very quickly, and how we

9 could work -- because often, it is a township

10 responsibility; but obviously we want to be as

11 supportive as possible.

12 And whether it's more clearly delineated

13 crosswalks, whether it's raised pavements,

14 whatever it is, we want to be there. And so I

15 thank you for engaging us in your community, and

16 we had a great conversation and I know that

17 we're moving on things in the short-term but

18 also in the long-term, which makes me want to

19 get to PennDOT Connects very quickly.

20 I am the first planner to be in the lead

21 at PennDOT. And so really looking at things and

22 seeing how we can better create a combination of

23 planning and engineering. And we know that when

24 planning and engineering have clear

25 communication, our communities benefit; and 26

1 that's really what's at the heart of PennDOT

2 Connects.

3 We are investing in communities so that

4 they see their assets as true assets. So

5 starting right now and, in fact, tomorrow is the

6 official announcement of our PennDOT Connects

7 initiative, every single project moving forward

8 at PennDOT will engage, in a collaborative

9 effort, with their communities. We'll look at

10 township managers; we'll connect with borough

11 managers; we'll look at their long-term

12 comprehensive plans. Where do they see economic

13 development now; where do they see it in the

14 future? What do their needs look like, whether

15 they're transit connections or do they want

16 future transit connections; what are their

17 stormwater issues; how can we work with

18 municipalities; what are their pedestrian

19 corridors; what are their bicycling corridors;

20 how can we offer more mobility options; and

21 really how can we impact, in a positive way, the

22 quality of life of those who live near our asset

23 and in that community and how can we invest and

24 help those communities become the communities

25 they want to be? And we want to be part of 27

1 their community vision. I'm very optimistic,

2 and I know that all of our projects are going to

3 be consistently looked at through this lens and

4 be better for it; and I know that our

5 relationships with our communities will also be

6 strengthened.

7 REPRESENTATIVE DEAN: And I thank you

8 for that. And in my community, you're already

9 making a difference. I like your focus on the

10 use of the word invest, because all of these

11 things are not just repairs of roadways or

12 repairs of cracked sidewalks; they are an

13 investment; they grow the community; they grow

14 the economic development there; and they add

15 value to property owners.

16 So thanks for all you're doing.

17 MS. RICHARDS: And that's exactly how we

18 want our communities to feel about our

19 investments and our projects.

20 REPRESENTATIVE DEAN: Thank you. Thank

21 you, Mr. Chairman.

22 MAJORITY CHAIRMAN SAYLOR: Very good.

23 Representative Roae.

24 REPRESENTATIVE ROAE: Thank you, Mr.

25 Chairman; and thank you, Madam Secretary. I'm 28

1 going to have a follow-up question about REAL

2 ID. Somebody else mentioned that a few minutes

3 ago. As everyone knows, that's been around

4 since 2005 in the US Congress, then we passed

5 the law here in Pennsylvania that we were not

6 going to comply.

7 Back at that time, PennDOT had told us

8 it would be 120 to $140 million to comply with

9 the REAL ID Act. Do you have an up-to-date

10 accurate estimate of what it would cost to

11 comply now?

12 MS. RICHARDS: I don't. Because as I

13 said, some states have been given flexibility.

14 We would hope that we would be given that

15 flexibility. Back then, we also hadn't already

16 gone forward with a lot of the security features

17 that we now have, so those numbers are obsolete

18 now. They really don't have relevance for us

19 moving forward.

20 But as soon as Act 38, which was passed

21 here in 2012, is repealed, we can then begin

22 those conversations with US Homeland Security

23 and get those numbers. We will get them in

24 front of you as soon as possible, as soon as we

25 know exactly what we have to do to become 29

1 compliant.

2 REPRESENTATIVE ROAE: Okay. And then my

3 next question is, I assume that Pennsylvania

4 only gives driver's licenses to people that are

5 in the United States legally. Some states are

6 giving driver's licenses to people that are in

7 the country illegally. But we're not doing

8 that, are we?

9 MS. RICHARDS: We have a Legal Presence

10 Law --

11 REPRESENTATIVE ROAE: Okay.

12 MS. RICHARDS: -- where we have to have

13 them show proof that they are here legally

14 before they can get an ID.

15 REPRESENTATIVE ROAE: Okay. Good.

16 MS. RICHARDS: So that is part of our

17 process.

18 REPRESENTATIVE ROAE: Good. Because one

19 of the requirements of REAL ID is people have to

20 prove they're in the United States legally, but

21 some states are giving driver's licenses to

22 people that they know are here illegally; so

23 it's kind of contradictory.

24 So I think it's kind of crazy if we

25 comply with REAL ID, because it defeats the 30

1 whole purpose of the thing. But as far as our

2 licenses, I was looking through the federal law,

3 to comply with REAL ID, it seems like we already

4 comply.

5 I mean, you have to have the full legal

6 name, date of birth, gender, digital photo,

7 address, signature. There has to be like a

8 security strip with, you know, information on it

9 you can scan. There has to be security at the

10 location of where they make the driver's

11 licenses, I assume we have that, you know,

12 background checks on employees that make the

13 driver's licenses.

14 I'm not going to go through all this

15 stuff, but it just seems like most of the things

16 -- so have the federal officials told you why

17 our licenses don't comply?

18 MS. RICHARDS: Well, that's the

19 conversation we want to have. We haven't been

20 able to have it, because we are forbidden with

21 Act 38. But your questions are the reason why

22 we're not sure exactly what we have to do. We

23 already have a very secure driver's license.

24 I'm very proud of the product we produce here in

25 Pennsylvania. And we're hoping that we will get 31

1 credit for that and it will be counted toward

2 REAL ID compliance. But again, we just don't

3 know that.

4 REPRESENTATIVE ROAE: Now, that was ten

5 years ago we passed that, so I can't remember

6 exactly how it was worded. But did we say that

7 you're not allowed to even mail them a sample

8 driver's license and say, Hey, what's wrong with

9 it; or you're just not allowed to implement

10 actually putting REAL ID in place and spending

11 the $140 million?

12 MS. RICHARDS: I only know since 2012 --

13 I've only been here since 2015, and I can only

14 respond as the 2012 legislation allows me to,

15 which is we really can't move forward with

16 detailed conversations until that gets repealed.

17 REPRESENTATIVE ROAE: So you can't mail

18 them a sample driver's license and say --

19 MS. RICHARDS: I mean, they can take a

20 look at it; but we can't have any real

21 productive conversations nor attach any pricing

22 to it yet. And I'm looking forward to having

23 those conversations and giving you more

24 information, as soon as we can do that.

25 REPRESENTATIVE ROAE: Okay. And then 32

1 one other real quick unrelated topic: What's

2 the current status on the issue of shadow

3 vehicles? A lot of our small municipalities

4 were just devastated that instead of having one

5 guy go out on a tractor and mow, they now have

6 to have -- some townships only have a two-person

7 road crew, so it takes two people: one driving

8 the truck behind the mower, one driving the

9 mower. Then cars don't know what to do. They

10 swerve around the truck and almost swerve back

11 into the tractor. So is PennDOT still insisting

12 on the shadow vehicles?

13 MS. RICHARDS: Safety is always

14 important, of those who are traveling on our

15 roads, as well as those who are working

16 alongside in our right-of-way; so the shadow

17 vehicles have shown to protect those drivers on

18 the mowers. Sometimes it's very hard to see

19 them. Sometimes vehicles pass too close to them

20 and we have accidents. So the shadows have

21 proven to be a safer option.

22 We're happy to take another look and,

23 you know, we're always happy to further that

24 conversation. But again, the safety of those

25 who work alongside our roads, as well as travel, 33

1 are at the forefront of everything we do.

2 REPRESENTATIVE ROAE: All right. Thank

3 you so much.

4 MAJORITY CHAIRMAN SAYLOR:

5 Representative Kinsey.

6 REPRESENTATIVE KINSEY: Thank you, Mr.

7 Chairman. Madam Secretary, how are you?

8 MS. RICHARDS: Good. How are you?

9 REPRESENTATIVE KINSEY: Great. I

10 represent portions of Philadelphia County, and

11 so I was glad to hear you talk about I-76;

12 because, you know, it gets pretty congested.

13 But I want to switch over to safety,

14 public safety. For the State of Pennsylvania, I

15 understand we are one of 17 states that do not

16 have a primary seatbelt law. And that comes up,

17 because I just had some friends over from Jersey

18 and, of course, Jersey has, I believe, that type

19 of law.

20 So I guess my question is, Does PennDOT

21 keep data or statistics in regard to fatalities

22 that do not involve a seatbelt or a person

23 wearing a seatbelt? Do we keep any type of

24 statistics or data on that?

25 MS. RICHARDS: I know as part of our 34

1 safety plan, and I just signed off on our new

2 one, we take a look at all of our fatalities and

3 the causes of those fatalities. I will have to

4 go back to see if seatbelt is one of the

5 elements that they measure.

6 REPRESENTATIVE KINSEY: Okay.

7 MS. RICHARDS: But I would think it is.

8 And in all of the things that we can do, if I

9 can say one thing, especially if I speak to new

10 teen drivers, it's wear your seatbelt. There is

11 nothing more that anyone could do to increase

12 their chances of surviving an accident than

13 wearing a seatbelt.

14 So anything we can do to improve and get

15 more people to wear their seatbelt, PennDOT

16 would be for; and we'll get you all that

17 information.

18 REPRESENTATIVE KINSEY: Great. I

19 appreciate that. I mean, sitting here and

20 hearing you and, you know, I'm quite sure with

21 the members here, it seems like a no-brainer.

22 I've not been in this legislative body but for

23 so long, maybe just the past four years, but --

24 it's interesting, because at one point I

25 actually thought we had a seatbelt law; but now 35

1 I'm getting reports that we don't have the same

2 type of law as maybe our neighbors do.

3 MS. RICHARDS: It's not primary; it's

4 secondary.

5 REPRESENTATIVE KINSEY: Not primary.

6 MS. RICHARDS: Yeah.

7 REPRESENTATIVE KINSEY: Okay. But it's

8 something you think can help save lives in

9 regards to --

10 MS. RICHARDS: Absolutely. And all the

11 data shows that. Every single state shows that

12 the dramatic impact of wearing your seatbelt and

13 how that really reduces fatalities, as well as

14 serious accidents.

15 REPRESENTATIVE KINSEY: Great. Well,

16 thank you for sharing that. Maybe that's

17 something that we can collectively work on

18 regarding saving lives here in Pennsylvania.

19 Thank you very much.

20 MS. RICHARDS: Thank you.

21 REPRESENTATIVE KINSEY: Thank you, Mr.

22 Chairman.

23 MAJORITY CHAIRMAN SAYLOR: Very good.

24 Did want to announce that we are joined by

25 Representative Ed Neilson, Representative 36

1 Christen Phillips-Hill, and Representative Perry

2 Warren.

3 The next testifier is Representative

4 Pyle.

5 REPRESENTATIVE PYLE: Thank you,

6 Chairman. Hi, Secretary. Great to see you

7 again.

8 MS. RICHARDS: Nice to see you, too.

9 REPRESENTATIVE PYLE: How are you doing?

10 MS. RICHARDS: Pretty good.

11 REPRESENTATIVE PYLE: Mr. Chairman,

12 before we start, I want to get the Secretary out

13 of trouble. Last time I was here interrogating

14 her, I offered her a cup of coffee, which I was

15 told violated the gift ban from the Governor.

16 And I just wanted to report she never did accept

17 that cup of coffee.

18 MS. RICHARDS: Thank you.

19 REPRESENTATIVE PYLE: She's way good.

20 Madam Secretary, as I said, good to see you.

21 This may come as out of character, but I have

22 some mass transit questions for you. Don't

23 laugh, Sheryl.

24 As you know, my county is a sixth-class

25 county, which qualifies on everybody's scale as 37

1 a smaller one. Many of our smaller counties

2 depend on Federal 5311 funding for their

3 operating costs. And I wanted to know, do small

4 operations like my little wee bus line, Town and

5 Country Transit, do they have the ability to

6 draw down 5311 funds, independently?

7 MS. RICHARDS: Well, 5311, our Federal

8 Transit Funds -- I do just want to say,

9 Representative Pyle, you have surprised me. I

10 was not anticipating this question coming from

11 you. However, --

12 REPRESENTATIVE PYLE: Normally you guys

13 call ahead and ask what I'm going to ask you,

14 but you didn't do it this year.

15 MS. RICHARDS: No, I like this question.

16 I like this question. So, in total,

17 Pennsylvania receives $27 million of 5311 funds

18 every year. But this amount, you know, when we

19 take a look at it, we have to look at the

20 components of it and their own restrictions. So

21 there's an RTAP components inner city bus

22 component, Appalachian component, and in

23 general. So RTAP has to be spent on training

24 activities for transit agencies; inner city must

25 be spent on services that connect rural parts of 38

1 the state with other locations; and Appalachian

2 can only be spent in counties that the Federal

3 Transit Administration designates as being part

4 of the Appalachian region. So certain of those

5 categories, obviously, would be able to be spent

6 in your area, obviously, if you have any other

7 questions. And then there's also a general,

8 which can be spent on any.

9 REPRESENTATIVE PYLE: That's kind of

10 where we're leading, Secretary. With 5311, up

11 to 50 percent of the federal funding can be used

12 for operating costs by the small county transit

13 systems. And I'm wondering, is this a common

14 practice in our state? Do our rural transit

15 systems use up to the limit, 50 percent, as

16 allowed by law in 5311?

17 MS. RICHARDS: Right. Well, we spread

18 it as much as we can. Obviously, we look at the

19 need. I will have to get back to you to give

20 you direct percentages of every single transit,

21 whether they use the maximum amount; but I do

22 know they do get used and obviously they're

23 needed.

24 I know up in Erie, the whole new transit

25 facility is very exciting up there, as well, and 39

1 moving forward. We had a few bumps in the road

2 this year, but things are looking really good.

3 REPRESENTATIVE PYLE: Well, you just

4 said something that kind of created another

5 question. This is rural transit funding. Does

6 all of this 5311 money go to rural agencies, or

7 what is the cutoff in the county code? Will you

8 fund down from class one, class two, class

9 three; or do you pick it up at class four and go

10 lower to qualify for the rural status? Who

11 receives this, is the question?

12 MS. RICHARDS: Yeah. I will have to get

13 back to you on that, but I do know that they do

14 go into the rural parts of the state; and I do

15 know that there is, as I said before, the 27

16 million going across; but we can get you the

17 breakdown as far as which rural transit agencies

18 are utilizing which percentage of funds.

19 REPRESENTATIVE PYLE: Well, what got me

20 going is when you used that word urban.

21 MS. RICHARDS: Yeah.

22 REPRESENTATIVE PYLE: You've been to my

23 neighborhood, Madam Secretary. There is nothing

24 urban about it.

25 MS. RICHARDS: I have. 40

1 REPRESENTATIVE PYLE: But I know these

2 funds are supposed to be ear-marked. And,

3 hence, the question, do they kick in at class

4 four county, class five county, class six

5 county? Urban's none of those.

6 MS. RICHARDS: I get it.

7 REPRESENTATIVE PYLE: So I'm curious as

8 to where this money intended for rural areas is

9 going.

10 MS. RICHARDS: Yeah. And that was my

11 error in mentioning Erie. As I was going

12 through all of my transit things, Erie has been

13 a special place this year for transit; and so

14 that was my mistake to bring it into this

15 conversation.

16 But we'll get back to you with the

17 details on that. All I have in front of me is

18 the breakdown, and I know that it gets used and

19 it is, you know, well needed throughout the

20 entire state.

21 REPRESENTATIVE PYLE: Well, that kind of

22 goes to where I'm heading with this. Yeah,

23 we've got a lot of small systems, Indigo, Butler

24 TransACT, that are kind of looking for that

25 funding and it's their expectation that being 41

1 within the parameters of the 5311 language, they

2 think they're going to get some money out of

3 that; and I told them I'd ask, so --

4 MS. RICHARDS: We'd be happy, obviously,

5 to meet with them. I know we already do meet

6 with them, and I know we're talking with Butler

7 right now --

8 REPRESENTATIVE PYLE: Very good.

9 MS. RICHARDS: -- over some federal

10 funds. And the question right now is where the

11 local matches are coming from. There seems to

12 be a little misunderstanding whether they were

13 coming from --

14 REPRESENTATIVE PYLE: You mean, they're

15 not putting up their share, right?

16 MS. RICHARDS: -- the localities or

17 coming from PennDOT. And so we will work

18 through with that. And we have been in touch

19 with Senator Toomey's office, as well as Senator

20 Casey's office on that very issue.

21 REPRESENTATIVE PYLE: Okay.

22 MS. RICHARDS: In fact, I signed letters

23 this morning regarding that issue.

24 REPRESENTATIVE PYLE: Very cool. Thank

25 you. One last thing, Chairman, or am I out of 42

1 time?

2 MAJORITY CHAIRMAN SAYLOR: You're out of

3 time.

4 MS. RICHARDS: Thank you, Chairman.

5 REPRESENTATIVE PYLE: I still got that

6 cup of coffee, Secretary.

7 MAJORITY CHAIRMAN SAYLOR:

8 Representative Daley.

9 REPRESENTATIVE DALEY: Thank you, Mr.

10 Chairman. Madam Secretary, it's good to see

11 you. I just wanted to -- this is not what my

12 question's going to be, but I wanted to just

13 comment on the Governor's proposal for funding

14 for the State Police; and I'm really glad to see

15 that in this year's budget.

16 But I wanted to ask you about -- it

17 looks like you set up an autonomous vehicles

18 testing policy task force. Can you give us an

19 update on that? And if -- I also saw that there

20 was Senate -- legislation in the Senate that it

21 stalled. Is that something that you see moving

22 forward? But if you can just give us an update

23 on the autonomous vehicles.

24 MS. RICHARDS: Sure, sure. So I'm very

25 excited to give you an update. It's been one of 43

1 my priorities to establish PennDOT in

2 Pennsylvania as a national leader with automated

3 vehicles.

4 Because just as I answered an earlier

5 question regarding seatbelts, I truly see

6 automated vehicles and connected vehicles in

7 allowing us to get that next leap in decreasing

8 the number of fatalities and serious accidents

9 on our roadways.

10 Ninety-four percent of fatalities

11 nationwide have been attributed to distracted

12 driving. And automated and connected vehicles

13 allows to reduce that number, if not to zero, to

14 a very small number; and so this is extremely

15 important in keeping people safe on our

16 highways.

17 I'm very proud. We had a policy task

18 force, one of the only ones in the nation that

19 took this proactive measure. We didn't even

20 wait for NHTSA, the national organization, to

21 come out with their guidelines. We went ahead;

22 and it worked perfectly, because we were in

23 tandem. We were working along with each other

24 and complimenting each other when we came out

25 with our reports. 44

1 So the draft report, final report, came

2 across my desk in November; and we shared it and

3 it is to help support and give information to

4 the Legislature so they can move forward with

5 the legislation, which will allow for safe

6 testing on our roadways here in Pennsylvania.

7 And Pennsylvania's seen as a great place, and I

8 want to make sure it still is, to test these

9 vehicles.

10 We have all four different seasons. We

11 have hilly; we have flat conditions; we have

12 academic institutions who have been working on

13 this technology. We have Carnegie Mellon, which

14 has had their own autonomous vehicle; and I know

15 all the representatives had a chance to drive in

16 that.

17 We're going to bring that back again for

18 anyone who didn't get a chance, to show them

19 firsthand what this technology is like. I was

20 honored to be part of the World Congress. There

21 were only six secretaries nationwide that were

22 invited to present last October and showing them

23 what we're doing here in the United States.

24 I'm working closely with our colleagues

25 in Ohio and Michigan. We want to be the first 45

1 multi-state autonomous corridor, and I think we

2 are going to get there. And so it's very

3 exciting technology. We're working with the

4 Legislature to make sure that the legislation is

5 strict enough, yet flexible enough to allow the

6 industry to work, and the private sector to

7 formulate and develop this technology in a way

8 that gives them what they need in order to move

9 it forward.

10 But again, it's our responsibility to

11 make sure it's done safely. And I feel very

12 confident that both of those goals can be

13 reached.

14 REPRESENTATIVE DALEY: Thank you. I am

15 truly looking forward to the day. I hope I'm

16 still around when autonomous vehicles are, you

17 know, ruling the road. And I think at some

18 point, they're going to look back and say, human

19 beings actually drove cars? So it's exciting.

20 And thank you for the update.

21 MS. RICHARDS: That day is coming. It's

22 coming.

23 MAJORITY CHAIRMAN SAYLOR:

24 Representative Peifer.

25 REPRESENTATIVE PEIFER: Thank you, 46

1 Chairman. Thank you, Secretary, for being here.

2 I can't tell you how excited I was when I was

3 reading your written testimony. Right at the

4 end, you talk about PennDOT's Road MaP Program,

5 where you're going to use some of your recycled,

6 reclaimed materials for some of your low-volume

7 roads. Do you want to talk a little bit about

8 that initiative?

9 MS. RICHARDS: I would love to talk

10 about it. I'm hoping that's the only question

11 you ask, so I can use it for a full answer.

12 REPRESENTATIVE PEIFER: Bridges is

13 number two.

14 MS. RICHARDS: So PennDOT Connects,

15 diversity, innovative technology, and Road MaP,

16 those are the four priorities that I have set

17 forth for PennDOT; so I'm very happy you asked

18 this question.

19 Road MaP is allowing us to invest $2.1

20 billion over the next ten years into our

21 interstates, and so 1 billion is being allocated

22 to county maintenance; and then 1.1 billion is

23 being allocated to interstate preservation and

24 reconstruction.

25 And just to give you a background on why 47

1 this is needed, of the nearly 40,000 miles that

2 PennDOT maintains, nearly half of those miles

3 are low-volume routes; so they are not getting

4 the attention that they've needed, especially

5 while we've been holding maintenance funding

6 flat, before Act 89, before we had the resources

7 to deal with them.

8 Of these, more than 16,000 are in rural

9 areas with a population of less than 5,000. And

10 so this initiative is really allowing us, from

11 the ground up, to take care of these very

12 important roadways.

13 We have the interstates. As I

14 mentioned, 59 percent are out of cycle for

15 reconstruction. Our roadways, you know, we have

16 an aging infrastructure, and Pennsylvania gets

17 bad marks for very good reasons, because of the

18 age of everything.

19 We should be doing reconstruction every

20 40 years, and here we have nearly 60 percent of

21 our interstate, that's 1600 segment miles of

22 interstate, that have not been touched in more

23 than 40 years; and so it's very important that

24 we take this money and we dedicate it there.

25 And then we also have lower-volume 48

1 roads. And just to put this into perspective,

2 we treat 18,000 miles of our lower-volume roads

3 with seal coating and resurfacing. They should

4 be treated with a seal coat every four to seven

5 years, and here we have 18 percent of our roads

6 that are out of cycle there. And then we should

7 be treating with structural resurfacing every 15

8 to 20 years, and we have 24 percent of our

9 roadways that need to be structurally resurfaced

10 behind and not on cycle.

11 So it's much-needed money. Road MaP,

12 the MaP stands for Maintenance and Preservation.

13 It is a strong focus of what we're doing. Our

14 county maintenance, our county facilities, are

15 really working together, sharing best management

16 practices, making use of RAP, which is recycled

17 asphalt materials.

18 This is allowing us to pave more miles

19 than we ever have been able to before, at lower

20 costs. So communities across Pennsylvania will

21 see activity, will see pavement work being done

22 where they have not seen it in quite some time.

23 And again, it is part of the core

24 function of PennDOT, which is to make sure that

25 snow is cleared, that our roads are passable all 49

1 times of year, not just in the winter, but in

2 summer and spring and fall as well; and to make

3 sure that our low-volume roads, as well as our

4 rural communities get onto cycle and get the

5 pavement needs that they require.

6 REPRESENTATIVE PEIFER: You know, Act 89

7 really helps some of our two-digit and

8 three-digit roads; but it seems -- you know,

9 there are so many -- like you said, so many

10 roads that are low-digit with low traffic count,

11 out there in rural PA.

12 You did extensive work with the RAP

13 program and literally we were ripping out parts

14 of the interstate and just taking it a couple

15 miles and putting it down on a low-traffic rural

16 road. So thank you for that. And the roads

17 seem to be holding up well and the people are

18 just really pleased with it, so it was a great

19 initiative; and I want to thank you.

20 The second question had to do with

21 bridges. Back in 2014, we entered into a Rapid

22 Bridge Replacement Contract. Are you happy with

23 that project as it stands now?

24 MS. RICHARDS: Look, I'll be honest,

25 we've had a lot of -- and I don't mean to be 50

1 cute here -- but we've hit a lot of road bumps

2 on the Rapid Bridge Replacement Initiative. I'm

3 pleased to say that after a lot of renegotiation

4 and working with our partners on this, we're

5 moving forward in a positive way right now. But

6 we are at a point now where we are getting 558

7 bridges; and they should be completed over about

8 the next two years.

9 We had to look at the schedule again and

10 make sure that they were working on realistic

11 terms here. We had to see how they were

12 reaching out to our communities and we had to

13 tell them at PennDOT we demand more of a

14 community involvement in what we do.

15 But right now, as I said, we will get

16 those 558 bridges done. We will work closely

17 and we will be monitoring it very closely, and

18 it will be helping us reduce the number of

19 structurally deficient bridges here in the

20 Commonwealth.

21 There will be lessons learned. And once

22 we get through having these bridges built, of

23 course, there's a 25-year maintenance process

24 that is part of this program, as well, before

25 they get handed back to us; and we will be happy 51

1 again to share those lessons learned and how we

2 will approach P3 in the future.

3 This is the largest P3 of its kind in

4 the nation; and we know when you're the first

5 person, there are going to be certain, as I

6 said, bumps in the road; but we feel real good

7 and I'm real proud of our team and how they've

8 been able to manage this program.

9 REPRESENTATIVE PEIFER: All right.

10 Thank you. Thank you, Mr. Chairman.

11 MAJORITY CHAIRMAN SAYLOR:

12 Representative Boyle.

13 REPRESENTATIVE BOYLE: Thank you,

14 Secretary Richards for being here; and you might

15 have a similar interest in the question that I'm

16 about to pose, being from Montgomery County,

17 where I, of course, know you.

18 Probably the most interesting to me, and

19 also what I believe could offer the greatest

20 chance at increased prosperity in the

21 Philadelphia area, relates to transportation,

22 specifically, high-speed rail coming from

23 Philadelphia.

24 I've seen different studies where it is

25 possible that we could replicate the Asian style 52

1 or some of the European-style transit, where we

2 would be able to go from downtown Philadelphia

3 to Manhattan in roughly half an hour using

4 bullet trains, and also going from Philadelphia,

5 downtown Philadelphia, to Washington, DC in

6 about 45 minutes. That excites me. I think it

7 excites many business owners in the City of

8 Philadelphia. I can't really think of anything

9 that would generate wealth and job creation in

10 the southeast more than that.

11 I notice that the current Administration

12 talked about the prospect of high-speed rail in

13 the United States, and I was curious if there's

14 been any indication from the federal government

15 about any direction that they might be going?

16 And, also, I was curious, I think this

17 is probably a technical question, engineering

18 question, just how realistic you think

19 high-speed rail in the Philadelphia area is for

20 us. Thank you.

21 MS. RICHARDS: Sure. Well, I'm pleased

22 to say, and actually I have to thank Chairman

23 Saylor; initially, I was scheduled to address

24 this group next week. However, all of the

25 secretaries across the country are meeting in DC 53

1 to meet the new US DOT Secretary and to discuss

2 what is on their transportation agenda. So I

3 will be able to come back with more information,

4 and high-speed rail is high on my list.

5 I think rail, in general, is something

6 that the federal government can help us in, in

7 big ways; and I hope that it is on their agenda.

8 I don't know.

9 All of my colleagues across the country,

10 we're all guessing. There hasn't been a lot of

11 information, and we're hoping starting next week

12 we'll be able to know.

13 Of course, I am a huge high-speed rail

14 advocate. It's always been a dream of mine.

15 But I have to say since I've sat in this seat, I

16 do think it's feasible and I think it could now

17 happen. A lot of things have to fall into

18 place, a good funding mechanism, first of all;

19 this is not inexpensive.

20 But looking at China and how they have

21 built high-speed rail on elevated platforms,

22 kind of like monorail in Disney World, I do

23 think we could reduce environmental impacts. I

24 do think that the way that design and building

25 technology has advanced, that even if we went 54

1 out to Pittsburgh, that we could go through

2 things instead of around things, like we do now.

3 I'm not saying that right-of-way is

4 going to be easy. I'm not saying that finding

5 alternative routes is going to happen quickly,

6 but I do think it can happen. I think it is

7 something that will take some time.

8 I'm ready to start the work, if we get

9 the slightest window open on the federal level

10 and, you know, hopefully set up a foundation so

11 that it can be done in the future. Again, it's

12 not something that will be built over a year or

13 two-year period; but it's something that you

14 have to work on now so that you can see

15 something in 5, 10, 15 years down the road.

16 And again, it is a personal interest of

17 mine; and I'd be happy to report back when I get

18 back from DC.

19 REPRESENTATIVE BOYLE: Thank you.

20 MAJORITY CHAIRMAN SAYLOR:

21 Representative Quinn.

22 REPRESENTATIVE QUINN: Thanks, Mr.

23 Chairman. It's great to see you again, Madam

24 Secretary. Thank you for coming out here.

25 If you haven't noticed, it's been a mild 55

1 winter, you know, very mild. With the budget,

2 what kind of dollars, at this point, do you

3 think you've saved because of this?

4 MS. RICHARDS: Okay. So again, it's

5 been a mild winter in District 6 where you live,

6 Representative Quinn, where I live. It's been a

7 mild winter in District 8, but we have 11

8 districts; and so in the nine other districts,

9 they are already 75 percent over where they

10 usually are in their expenditures for winter.

11 We've had repeated storms, again, on

12 weekends, that have really, you know, made us

13 pay for overtime; and there's been a lot of

14 icing; there's been a lot of freeze and thawing.

15 So right now where we are, our winter budget is

16 $205 million, and we're at 184 million right

17 now.

18 REPRESENTATIVE QUINN: Oh, that

19 surprises me. So those dollars for snow

20 removal, ice removal, that's statewide; you

21 don't allocate that per district?

22 MS. RICHARDS: Correct.

23 REPRESENTATIVE QUINN: I guess that

24 makes sense. So here I was feeling pretty good

25 about being able to hop on some spring 56

1 maintenance project soon. But listen to the

2 groundhog, huh?

3 MS. RICHARDS: Yeah. I'm sorry to

4 report that. Again, in District 6, and even,

5 you know, my husband has heard me talk about

6 this and my children, as well. My kids are

7 upset they did not have more snow days than they

8 did this year. They only got one. But the rest

9 of the state looks quite different.

10 REPRESENTATIVE QUINN: Okay. Well, good

11 to know. Back to Act 89. It was projected to

12 generate between $7.3 and 7.6 billion in new

13 funding to be used over a myriad of different

14 things transportation related.

15 Can you tell us if the Act 89

16 projections are still meeting expectations and

17 what the prospects are for the next couple of

18 years?

19 MS. RICHARDS: Well, Act 89 is getting

20 us $2.5 billion after year five, every single

21 year; and that is happening. We're dealing with

22 the State Police issue. Because as that was

23 taking a larger and larger chunk out of the

24 Motor License Fund, we were not able to deliver.

25 However, I'm happy to report the decade 57

1 of investment projects, we've made a remarkable

2 effort there. We have almost two-thirds of all

3 of those projects either complete or underway.

4 Over the next ten years, we will have all of the

5 maintenance projects with the Road MaP

6 initiative that I went into earlier, we will

7 have them done as well. And so it is achieving

8 what we anticipated; and, of course, we continue

9 to make sure that every dollar goes as far as

10 possible.

11 REPRESENTATIVE QUINN: Thank you.

12 PennDOT reacted very quickly and effectively

13 with the lousy news we had, I think it was in

14 January, with regard to the closure of the

15 Delaware bridge over the Turnpike bridge; and

16 thank you for that.

17 It affects so many drivers down in our

18 region. As your team went out to investigate

19 that, was it found to be an error in design or

20 some maintenance or, you know, did something hit

21 the wall?

22 My question is: If it's in design, my

23 concern would be how often that design was used

24 on other bridges that we might have coming back?

25 MS. RICHARDS: You can come work for 58

1 PennDOT. That is exactly the questions that we

2 all had. And I was worried that I was going to

3 have to close a significant number of bridges

4 that had similar design. It was found that it

5 was due to a process that is no longer allowed.

6 And that is when holes are drilled in pieces of

7 this truss, they were plugged; and now we don't

8 allow that. There would be another -- something

9 else put on to make it more structurally sound.

10 But back then, when this bridge was built in the

11 1950s, it was the steel that was used back then,

12 as well as this was common practice. It is no

13 longer common practice.

14 We have -- and I had a report at the

15 last Turnpike Commission meeting, which was

16 yesterday, and we are X-raying, you know, not to

17 use more technical terms than that, but

18 basically X-raying the whole bridge and seeing

19 where other plugs may exist; and we have

20 identified two other places. We're looking at

21 the structural soundness of the bridges in those

22 areas.

23 We are looking at our other bridges, and

24 now that will be something that we look at. We

25 don't feel that this is something where we need 59

1 to close bridges. But from now on when we

2 inspect them, we will be looking at that type of

3 a plug weld, it's called. And so we feel we can

4 retrofit this bridge and we're figuring out at

5 the Turnpike, what we do in the long-term. That

6 will be a short-term fix, but by short-term I

7 mean several years; and then we will figure out

8 the long-term fix.

9 REPRESENTATIVE QUINN: Thank you. And

10 if I do decide to come and apply to work for

11 you, I know I'll be helping that diversity

12 complement.

13 MS. RICHARDS: Yes, you will. We could

14 use it.

15 MAJORITY CHAIRMAN SAYLOR:

16 Representative Kreuger-Braneky.

17 REPRESENTATIVE KRUEGER-BRANEKY: Thank

18 you, Mr. Chairman; and thank you, Madam

19 Secretary, for joining us here today.

20 So I'm looking at the 511 App on my

21 phone. I remember last year hearing a notice

22 that we could track where snowplows were. And I

23 remember being stuck here at the Capitol at one

24 point and traveling home and wanting to know if

25 the roads were going to be clear. 60

1 Can you talk a little bit about this

2 technology, how it's working and what kind of

3 feedback you've gotten from Pennsylvania

4 residents, to date?

5 MS. RICHARDS: Sure. We've gotten great

6 feedback, both in allowing us to be more

7 efficient, but also allowing us to get

8 information out to the public; so it's one of

9 our GO-TIME initiatives; we have a dozen of them

10 over the last three budgets, which are saving

11 $89 million over the next five years.

12 AVLs, Automated Vehicle Locators, were

13 placed in every single plow this year, 2200,

14 allowing us to assess every single winter storm,

15 just the materials that were put down, the

16 temperatures, what worked best, how to be as

17 efficient as possible; and so we're very pleased

18 with that progress.

19 It also shows the locations of the

20 plows. We always ask people to stay home, if

21 possible. It allows our plows to do the work as

22 efficiently as possible. But if you have to go

23 out -- we understand there's medical

24 emergencies; some people have to work no matter

25 what the weather is. People's lives depend on 61

1 it. We want them to be able to leave their

2 house at the safest time, knowing when the plow

3 had just cleared the route that they need to

4 take.

5 And so we're putting all that out on our

6 511PA App, and it has been, you know, getting

7 rave reviews. People are really happy to have

8 that information at their fingertips.

9 REPRESENTATIVE KRUEGER-BRANEKY: And is

10 there anything else that you're doing from a

11 customer service perspective with technology?

12 MS. RICHARDS: Sure. The newest thing,

13 which I think is pretty exciting, and it came

14 out of the Turnpike issue during Storm Jonas,

15 where there were cars trapped and a long queue

16 after an accident. And so working with Pima,

17 working with the Turnpike Commission, Homeland

18 Security, as well, we put together the 511PA

19 Connect App. And what this does, is it allows

20 us to geo-fence an area. When we see there's a

21 two-hour delay and there could be possibly

22 another two hours afterwards, we can look at the

23 area on a map electronically; we can circle that

24 area and we can send text information to anybody

25 in that area. 62

1 They can respond back to us, if they

2 would like to receive more information. And the

3 way I like to describe it, it's kind of like

4 when you're on an airplane and you're sitting on

5 the runway and you don't know why and you're

6 aggravated and you just get more and more angry

7 or the pilot can tell you, we're sitting here

8 because there's a storm ahead or, you know, the

9 President is in our airspace or whatever the

10 reason is, then we'll be another 30 minutes, you

11 can feel the anxiety and the stress on the that

12 plane lower; and that's what we, you know, feel

13 that this app is doing.

14 We have used it once so far this year,

15 and it has been a huge success. The Turnpike

16 has used it twice. It is not to replace 911.

17 If someone has an emergency, they feel like

18 they're having a heart attack, they have an

19 emergency happening in their car, they are still

20 to call 911; but it is to get them information

21 so they can get a better handle how long they

22 may be there, why they are there and get the

23 information to them as quickly as possible; and

24 we're real excited about it.

25 We are the first in the nation to have 63

1 this two-way communication, and I spoke about it

2 at a national conference and I know other states

3 are going to quickly be copying us.

4 REPRESENTATIVE KRUEGER-BRANEKY:

5 Congrats on being first in the nation on that.

6 MS. RICHARDS: Thanks.

7 REPRESENTATIVE KRUEGER-BRANEKY: Do

8 drivers have to opt in to be able to get those

9 text messages?

10 MS. RICHARDS: They do. And that was

11 one part of it. We didn't want to be giving

12 information to people who did not want to

13 participate. There's always that part of the

14 population that does not want to receive

15 information, does not want to feel like we are

16 pushing information to them; so they do have to

17 -- the initial text is sent out, Do you want to

18 receive more information? And then based on how

19 they respond to that initial text, they will

20 either get more information or they won't hear

21 anything else from else.

22 REPRESENTATIVE KRUEGER-BRANEKY: But

23 anyone in that immediate area would receive the

24 text, whether they've signed up for the app or

25 not, the first text? 64

1 MS. RICHARDS: Correct. Correct. It

2 goes out to everybody in that area.

3 REPRESENTATIVE KRUEGER-BRANEKY: Great.

4 Thank you very much.

5 MS. RICHARDS: You're welcome.

6 MAJORITY CHAIRMAN SAYLOR:

7 Representative Kampf.

8 REPRESENTATIVE KAMPF: Madam Secretary,

9 good afternoon.

10 MS. RICHARDS: Good afternoon.

11 REPRESENTATIVE KAMPF: I think maybe

12 last year or the year before I asked these

13 questions: It's about the employee benefit

14 factors. I didn't see them in your submission

15 to us. Although, I did see a note that you

16 might provide them through the Budget Office.

17 Do you have those with you or --

18 MS. RICHARDS: I know them, and I'm

19 happy to discuss them with you.

20 REPRESENTATIVE KAMPF: Okay. For

21 example, the highway maintenance or -- well,

22 let's start with that one. What's the current

23 benefit factor?

24 MS. RICHARDS: Okay. Well, we have a

25 -- so just to give you the overall, which is 65

1 what we discussed before, and that's why I came

2 prepared; I remembered your question from last

3 year.

4 So we spend 1 billion, 70 million in

5 salary to our personnel. And of that, 43.5

6 percent goes to benefits. So the breakdown is

7 605 million to salary. So the total cost is 1

8 billion, 70 million; 605 million is salary, and

9 then the remainder, which is about 460 million,

10 goes to benefits; so that is the breakdown. And

11 that's their percentage.

12 Did you want a separate one for

13 maintenance?

14 REPRESENTATIVE KAMPF: So that's sort of

15 a blended rate of all the different --

16 MS. RICHARDS: Uh-huh.

17 REPRESENTATIVE KAMPF: Okay. Well,

18 that's fine. And is there -- usually when the

19 benefit factor's presented, it's not 57 to

20 salary, 43 to benefits; it's --

21 MS. RICHARDS: You're looking for the

22 multiplier?

23 REPRESENTATIVE KAMPF: -- every dollar.

24 MS. RICHARDS: Yeah, that's 77.

25 REPRESENTATIVE KAMPF: Seventy-seven? 66

1 MS. RICHARDS: Yeah, that would be .77.

2 So for every dollar that's paid, another 77

3 cents goes to benefits.

4 REPRESENTATIVE KAMPF: And is that

5 '16-'17 or '17-'18?

6 MS. RICHARDS: The numbers I was just

7 given, so I'm assuming they're '17-'18. No,

8 they're '16-'17. Good thing Dave's sitting next

9 to me. I was wondering -- you know, we need to

10 utilize Dave; so if you have any other

11 questions, feel free to ask him directly.

12 REPRESENTATIVE KAMPF: And what is it

13 going to be? What's the blended rate for

14 '17-'18?

15 MR. MARGOLIS: We're assuming the same

16 amount right now. We'll actually -- when we do

17 the rebudgeting after you pass the

18 Appropriations Act, we'll recompute that; but we

19 don't see a significant difference from the

20 current year.

21 REPRESENTATIVE KAMPF: Okay. All right.

22 Thank you very much.

23 MS. RICHARDS: Thank you.

24 MAJORITY CHAIRMAN SAYLOR:

25 Representative Donatucci. 67

1 REPRESENTATIVE DONATUCCI: Thank you,

2 Mr. Chairman; and welcome today. I have two

3 unrelated questions. With SEPTA as the sixth

4 largest branded system in the nation and

5 Pittsburgh is the 25th, Pennsylvania has made

6 great strides in addressing mass transit needs.

7 Can you elaborate on what Act 89 did for mass

8 transit?

9 MS. RICHARDS: Sure. So before Act 89,

10 there was 162 million for Transit Capital

11 Grants; and now we're very excited to say we

12 have 500 million, so an increase of $338

13 million. And as you know, these transit

14 agencies -- I'm a former SEPTA Board member and

15 worked very closely with all of our other

16 transit agencies.

17 This, as you know, is much needed.

18 We're still, you know, under, as far as our

19 sister agencies in Boston and Chicago and DC;

20 you know, we struggle and we have to make every

21 dollar count.

22 REPRESENTATIVE DONATUCCI: Thank you.

23 Growing population and growth in auto and truck

24 miles traveled, it's using up a lot of the road

25 capacity that was built during the interstate 68

1 highway boom. Creating new highway capacity

2 could possibly have significant environmental

3 and social impacts.

4 Having said that, it's my understanding

5 that there are several strategic highway

6 capacity enhancements now in development. Can

7 you describe two or three examples of how this

8 is being accomplished in the state?

9 MS. RICHARDS: Sure. Capacity projects

10 are, you know, few and far between, and

11 especially with the question earlier with

12 autonomous vehicles. We don't know what our

13 roadways will look like in the next 5, 10, 15,

14 20 years; but we do think that automated

15 vehicles, connected vehicles, are going to

16 reduce that congestion; and so, you know, we're

17 taking a look. We're taking a look at that.

18 Of course, I-95 is a very congested

19 corridor in your area; and so the new phases of

20 I-95 that are moving forward, while they are

21 adding, I would say, distances to get on and to

22 get off in certain neighborhoods in particular,

23 it wouldn't be seen as huge capacity adding,

24 even though that is our heaviest traveled

25 corridor. So we have a couple moving forward. 69

1 I could get you a list of exactly which

2 ones and where they are and be happy to talk

3 that over with you. But right now, you know,

4 our main focus definitely is enhancing the

5 corridors that already exist and maintaining our

6 network right now.

7 REPRESENTATIVE DONATUCCI: Thank you. I

8 wish you could do something with the Schuylkill

9 Expressway. Like, I would love to have -- and I

10 know it's not going to happen -- like a second

11 level. I would pay whatever toll they wanted to

12 be able to do that. So thank you.

13 MS. RICHARDS: Yeah. The I-76 corridor

14 program that I alluded to earlier, I won't go

15 over it again, but you're going to see the

16 activity in the end of this year, early next

17 year.

18 And while I say to everybody, it's not

19 going to become the Pocono Raceway afterwards,

20 it is definitely going to be improved from how

21 it exists today; and it could use it.

22 MAJORITY CHAIRMAN SAYLOR: I just wanted

23 to note, Madam Secretary, I had suggested to

24 Governor Rendell that he build a double-decker

25 on 76 and toll that with a P3; but he never took 70

1 me up on that offer.

2 MS. RICHARDS: It's out there. So if

3 there's any financiers or teams that want to do

4 that, I am the Chair of the P3 Board. I'd be

5 happy to listen.

6 MAJORITY CHAIRMAN SAYLOR: Believe it or

7 not, we had one or two unions who had offered,

8 back then, to actually construct the project.

9 They were -- I think one was a Canadian union,

10 one was an American union.

11 MS. RICHARDS: Uh-huh.

12 MAJORITY CHAIRMAN SAYLOR: That said,

13 they think it's a great way to invest their

14 pension system, which was interesting. But

15 we'll move on.

16 Representative Greiner.

17 REPRESENTATIVE GREINER: Thank you, Mr.

18 Chairman. Madam Secretary, thank you for being

19 here. I'm going to try to switch gears and get

20 back to the budget a little bit. And I know

21 we're talking about roads and construction, but

22 I want to get back to the numbers.

23 Back in November, after the election,

24 the Trump Administration announced that it's

25 going to complete a comprehensive review of all 71

1 federal regulations; and this includes the CAFE

2 standards, which changed dramatically under

3 President Obama, I mean, inflated tremendously

4 and, you know, something that I know we're going

5 to be looking at.

6 When the legislation that became Act 89

7 was being compiled when we voted on that bill,

8 fuel consumption estimates for 2017-'18 were

9 about 6.5 million gallons versus the current

10 estimate now of just about 6.1 million.

11 And that's -- you know, even with a

12 significantly lower -- I mean, consumption's

13 down, even though gas prices are also down

14 significantly. And this represents a

15 six-percent reduction, at least in my

16 calculation, in the estimate, which to me equals

17 roughly $230-million revenue loss to the Motor

18 License Fund. That's kind of what I'm looking

19 at here.

20 Can you discuss -- first of all, I want

21 to know whether my thinking is right on that.

22 And then, second of all, can you discuss the

23 impact that the CAFE standards are having on

24 that Motor License Fund?

25 And you say you're going to be in, I 72

1 guess, Washington next week or you're going to

2 -- I mean, maybe you'll be hearing more about

3 the Trump Administration's plan to potentially

4 slow down, you know, the CAFE standards that

5 were put in place, you know, years ago.

6 If you could maybe comment on that.

7 MS. RICHARDS: Yeah. I'm eager to hear

8 what their outlook is on it. Of course, because

9 the Motor License Fund is dependent on gas tax

10 revenue, even the more -- you know, as you

11 mentioned, but the more fuel-efficient vehicles

12 that were using, everything is impacting that

13 revenue now.

14 So I am part of the I-95 coalition,

15 where we are looking at, in a broader sense,

16 from Florida through Maine, what else we can

17 depend on and we're also looking at, obviously,

18 how it impacts the environment, emissions, how

19 the federal standards and what the federal plan

20 is and what this Administration will look at.

21 But again, I'd be happy to respond after

22 DC. I don't know if there's something specific.

23 REPRESENTATIVE GREINER: So we don't

24 know what the fund -- I mean, to me it looks

25 like a significant decrease to us for roads and 73

1 for, you know, other transit and multimodal and

2 those type of things.

3 MS. RICHARDS: It is. I mean, it will

4 be. That's our main revenue source.

5 REPRESENTATIVE GREINER: Yeah. Just one

6 -- I'm just going to make one comment. I'm a

7 big supporter of rail, too; but somebody said if

8 we have a dedicated funding source, I'm just

9 going to say that pretty much is the answer to

10 everything here in Harrisburg. If we could have

11 a dedicated funding source for everything, all

12 our problems would be taken care of.

13 I think rail's a long time away, but I

14 will say I think it's something that -- there's

15 a lot of potential there. I kind of did get a

16 kick out of that answer, because we need money,

17 we need funds, and we need to be smart about how

18 we approach it. We can't keep on going after

19 the taxpayers. Just kind of was thinking about

20 that. So thank you.

21 MAJORITY CHAIRMAN SAYLOR:

22 Representative Schweyer.

23 REPRESENTATIVE SCHWEYER: Thank you, Mr.

24 Chairman; and welcome, Madam Secretary. I just

25 want to say, for the record, just so there's no 74

1 confusion, that I do still serve on my Transit

2 Authority Board back home. And my question is

3 not specific for LANTA, but it's just sort of a

4 broader program.

5 But in my time on that board, one of the

6 most interesting programs -- and frankly, one of

7 the programs I'm most proud of is our Shared

8 Ride Program. Now, not so much LANTA, but there

9 are some concerns about the demand for the

10 Shared Ride Program. Specifically, you know, we

11 were talking weekends and evenings and kind of

12 the tough times that our folks with disabilities

13 have in getting to doctors' appointments and so

14 forth and so on.

15 So one question, and I'm going to keep

16 it very specific to this one particular topic,

17 ma'am. Do you have any ideas, thoughts about

18 how we can improve our delivery of services for

19 those folks, partner with our organizations,

20 those sorts of things?

21 Because, I mean, I really do -- I'm very

22 proud of that program locally, and I mow

23 statewide it's something that we could always

24 use a little bit more assistance with.

25 MS. RICHARDS: Yeah. Well, I share your 75

1 concern for it. When I was on the SEPTA Board,

2 that was one of our biggest challenges. And to

3 run an efficient and effective Shared Ride

4 Program is very difficult. Some of our transit

5 agencies do better than others. And I had a

6 conversation just this week. We are also

7 working with DHS, as well as Labor & Industry

8 and Education on the Employee First work plan;

9 and we're very excited to be partners in there.

10 One of the new ideas that that plan has

11 made us, you know, not only take note of but

12 we're moving forward, is we're taking a look at

13 van pooling, how that can be more -- how it can

14 be used, how we can subsidize certain vans to

15 make sure that they can accommodate those who

16 need wheelchairs. And, also, when you have to

17 make room for a wheelchair, you have to take out

18 three other seats; it takes up four seats. And

19 so how can that service be provided without

20 losing money and also allowing people with

21 disabilities to get the rides that they need?

22 That's one of the things we're taking a

23 look at. We also continue to look at the

24 opportunities that exist with Ride Share

25 services, such as Lyft and Uber, and how we can 76

1 incentivize drivers in areas that we don't have

2 drivers.

3 Also, how can we help them get vehicles,

4 again, that can accommodate those with

5 disabilities who cannot travel in a

6 stereotypical vehicle or in a standard vehicle,

7 I should say. And so we are actively working on

8 all of those fronts, and we definitely want to

9 make sure we make choices available for

10 everybody, those in the disability community, as

11 those not in the disability community. It's

12 something that we're actively involved in.

13 REPRESENTATIVE SCHWEYER: Great. Thank

14 you so much, Madam Secretary. Thank you.

15 MAJORITY CHAIRMAN SAYLOR:

16 Representative Delozier.

17 REPRESENTATIVE DELOZIER: Thank you, Mr.

18 Chairman. Madam Secretary, I have a quick

19 question on Act 89. It seems to be a lot of the

20 focal point, since it's such a huge bill.

21 But what was not mentioned, and it was

22 talked about a little bit earlier, you mentioned

23 about the online registration for the vehicle

24 registrations. So I guess my question from

25 that, to tag onto that, is the fact you said 77

1 $2-million savings because of less mailing costs

2 and that kind of thing.

3 What is the estimated savings for not

4 having to produce the sticker and --

5 MS. RICHARDS: 1.1 million.

6 REPRESENTATIVE DELOZIER: So that's on

7 top of that, too?

8 MS. RICHARDS: Correct.

9 REPRESENTATIVE DELOZIER: So with those

10 two savings, I know at the time you had said

11 that the program is working well. One of the

12 pushbacks that I've received is from the actual

13 enforcement of those that have expired

14 registration stickers.

15 So in the past, obviously, with the tag

16 on the plate, law enforcement or anybody were

17 able to easily decipher as to whether or not

18 they were out of date or if they were in

19 compliance.

20 So a lot of the discussion had been

21 about the scanners and the use of scanners, and

22 now our local municipalities have to purchase

23 these scanners in order to have that ability to

24 quickly check.

25 So my understanding was that with the 78

1 savings, that they were going to go to grants in

2 order to allow for these municipalities and

3 local law enforcement to purchase these

4 scanners. So I would like to know what that

5 update is with those savings you've been able to

6 accrue and those grants going to those local law

7 enforcements in order to buy that equipment.

8 MS. RICHARDS: Sure. So last year when

9 we were talking about that, that was the plan

10 and we were willing to take that $3.1 million.

11 Over the next, you know, five years, we were

12 going to put that together and offer grants to

13 buy hundreds of these scanners, but there was no

14 interest. We tried to get a bill in place;

15 nobody wanted to move forward on it.

16 And so what we did, is we took all of

17 that money and we put it back into construction.

18 So that money is now being utilized to drive

19 down the number, the decade of investment

20 projects that we're working on.

21 So it's not like it's sitting in a pot;

22 it has been allocated and working on our network

23 throughout the state.

24 REPRESENTATIVE DELOZIER: And when you

25 say, no interest, no interest by companies for 79

1 the scanners, no interest by law enforcement?

2 Because, I mean, I get asked about it all the

3 time from law enforcement; so I guess I don't

4 understand why there would have been no

5 interest.

6 MS. RICHARDS: We talked about it with

7 the Transportation Committee in the Senate and

8 the House, and it wasn't moving; there was not

9 an interest. There was not an interest as far

10 as moving that legislation forward, so it didn't

11 pass.

12 REPRESENTATIVE DELOZIER: Okay. So was

13 the law -- so it wasn't asked then to law

14 enforcement themselves in the sense of being

15 able to do their jobs?

16 MS. RICHARDS: Well, we talked to law

17 enforcement to see if scanners would be helpful

18 and there was an agreement that the scanners

19 would be helpful; but there wasn't a large, you

20 know, coming together of people saying we need

21 this and this is what we need; and there was

22 definitely no movement last year. So we put

23 forth. I was surprised. I thought that a

24 number of people would take it and run with it,

25 but -- 80

1 REPRESENTATIVE DELOZIER: Well, actually

2 I'm surprised; because I sit on the Judiciary

3 and I don't remember a conversation whatsoever.

4 So I would assume you went to the Judiciary

5 Committees in both --

6 MS. RICHARDS: No, no. We discussed it

7 in Transportation, as it was being discussed.

8 That's how I discussed it anyway.

9 REPRESENTATIVE DELOZIER: Okay. Well, I

10 guess I would say that there's a tremendous

11 amount of interest; because the police officers

12 don't feel they can do their jobs when it comes

13 to the enforcement of the change in and of

14 itself with the elimination of those stickers on

15 the cars in and of themselves. So, I mean, I've

16 had a lot of discussions with them. I guess a

17 lot of frustration, because that was a very

18 large -- an easy way to be able to disect that

19 and be able to determine whether or not somebody

20 was -- now it's a secondary cause, a secondary

21 reason for someone getting a citation or

22 anything; and, you know, you've mentioned

23 safety. Well, registration and being able to

24 have our cars registered and, you know, doing

25 the right thing, I guess is a safety issue, as 81

1 well.

2 Is that something that you would be

3 interested in or would be able to revisit then?

4 Because I don't know if the Transportation

5 Committee wasn't interested, but I can guarantee

6 you I am.

7 MS. RICHARDS: Of course. You know,

8 we're always willing to talk about things. We'd

9 have to identify money, because the money isn't

10 -- it's not like it's sitting in a pile waiting

11 to be used. It has been allocated. But we'd be

12 happy to have that conversation. We like

13 working alongside law enforcement. We want to

14 make sure they can do the jobs that they can do.

15 We'd be happy, you know, to have that

16 conversation.

17 REPRESENTATIVE DELOZIER: Okay. I guess

18 I would just register the fact that I can't

19 believe there was absolutely no interest,

20 considering how much I hear about this on a

21 regular basis, with the frustration of, what did

22 you do in Act 89 to us?

23 So I'm surprised that didn't filter

24 through in any of the other conversations. So

25 thank you very much. 82

1 MS. RICHARDS: No. I can just say it

2 was offered multiple times. I was also

3 surprised.

4 MAJORITY CHAIRMAN SAYLOR:

5 Representative Keller.

6 REPRESENTATIVE KELLER: Thank you, Mr.

7 Chairman. Madam Secretary, I'm sure you'll be

8 shocked that I'll be asking about the port.

9 MS. RICHARDS: I'd be disappointed if

10 you didn't. And we have good things to report.

11 REPRESENTATIVE KELLER: Yes, we do.

12 First, I want to thank you and the Governor. I

13 mean, every Governor has given us support, from

14 Governor Casey on. Every Governor has realized

15 how important the ports are to the economy of

16 Pennsylvania, and they've all supported us.

17 But I don't think anyone's supported as

18 much as Governor Wolf has. Two things I want to

19 highlight: Number one, the changes that he made

20 at the Philadelphia Regional Port Authority.

21 Professionalizing the staff that the Port

22 Authority has, sent a worldwide recognition that

23 now Pennsylvania is open for business; and I

24 think we'll see fruits from those changes that

25 we've made. 83

1 And number two: Making the investments

2 for the terminals. I mean, we've done the --

3 channel deepening is almost complete. It's 90

4 percent done. And it's great to be able to

5 accept these new bigger post-PANAMAC ships, but

6 if we don't have a terminal for them to pull up

7 into, it's all for nothing. So the investment

8 that the Governor's made into the terminals in

9 the Philadelphia port will pay off greatly.

10 And I'm sure you've seen the Inquirer

11 article that the port is booming right now. The

12 volumes are up, right across the board.

13 MS. RICHARDS: I have it right here in

14 my book (indicating).

15 REPRESENTATIVE KELLER: You have it

16 ready? And so those volumes, those increases in

17 volume that we had been predicting are coming

18 for years and we had to get ready for, that

19 equals one thing, the thing -- you can strip

20 everything away. The thing we are most

21 interested in up here are jobs, and that will be

22 able to create good family-sustaining paying

23 jobs. And so I wanted to thank the Governor for

24 that.

25 And to make sure that all these years 84

1 I've been bothering everybody with the terms

2 like dredging and container cranes and TEUs,

3 it's well worth it. It's paying off. So I just

4 wanted to make that point. And that's one thing

5 we can be proud of, and it's going to create a

6 lot of jobs in the future.

7 Two questions. I want to get them in,

8 so the Chairman doesn't cut me off. I know I'm

9 very parochial, but can you explain the benefits

10 that Act 89 has made on three ports in

11 Pennsylvania, not just the port of Philadelphia

12 that I'm always interested in?

13 And number two: Can you clarify what

14 the different responsibilities are between

15 PennDOT, the Pennsylvania Turnpike Commission,

16 and the two bridge commissions, Delaware River

17 Port Authority and the Delaware River Joint Toll

18 Bridge Commission? I know there's always a lot

19 of confusion --

20 MS. RICHARDS: Yeah, there is a lot of

21 confusion.

22 REPRESENTATIVE KELLER: -- when it comes

23 to that.

24 MS. RICHARDS: Let me start with that

25 real quick. 85

1 REPRESENTATIVE KELLER: Okay. Sure.

2 MS. RICHARDS: So the Delaware River

3 Port Authority, as well as the Delaware River

4 Joint Toll Bridge Commission, they're both

5 bi-state agencies; they both operate and

6 maintain bridges that go from Pennsylvania to

7 New Jersey. They're very different than

8 PennDOT, very different than the Turnpike

9 Commission.

10 Their boards are set by the Governors of

11 New Jersey and Pennsylvania; and again, they

12 operate as a bi-state agency and they're kind of

13 on their own as far as how they operate.

14 And so PennDOT does not have any

15 oversight with them. Of course, we work

16 alongside and we're very interested in the

17 Scudder Falls, which is operated and maintained

18 by the Delaware Joint Toll Bridge Commission,

19 because that is one of the detour routes with

20 the Turnpike bridge that is out.

21 So let me get to the Turnpike. There

22 are five commissioners on the Turnpike. The

23 Secretary is one of those commissioners. And

24 then there are four others. And so we oversee

25 and vote on the decisions for the capital plan 86

1 and operations for the Turnpike, but it's run by

2 a CEO, a COO, and there's an engineer.

3 And so, again, PennDOT does not maintain

4 or operate the Turnpike. Of course, we work

5 very closely with them. And when we see areas

6 of mutual benefit, we try to save money and

7 administrative costs on safety issues. We have

8 a transportation quality initiative where we go

9 over how we treat our roads, how we pave them,

10 whatever we can learn from each other. And the

11 development of the 511PA Connect System that

12 helps trapped travelers, is something that -- an

13 example of something that we worked on together.

14 And then, of course, there's PennDOT,

15 which, you know, 44,000 miles of roads and

16 25,000 bridges, ports, airports, aviation, rail

17 and -- and let me get to the three ports, which

18 was your question.

19 And so in Act 89, we've been able to

20 help out with the Philadelphia port; and that's

21 what's been key in the cargo incentive. We are

22 now in the second year of the five-year program,

23 where we give up to a million dollars, $25 per

24 container. And all of the firms who have taken

25 us up on that, we've seen an increase of 32 87

1 percent in the number of containers that come

2 through the Philadelphia port. So it's been a

3 huge success, and we're looking forward to

4 seeing that success over the next three years.

5 As far as the Erie port, they are going

6 through a strategic plan; and we've been able to

7 help them with that, again, through Act 89. And

8 there's a phased rehabilitation, as well as one

9 of their dry docks, the Donjon dock there, which

10 allows for the safety but also for materials to

11 come in and out of that port.

12 And then as far as the Pittsburgh port,

13 we have been able to continue our support on the

14 Pittsburgh port; and they have some concerns

15 with locks and dams, which is very unique, and

16 so we're helping them with those challenges.

17 REPRESENTATIVE KELLER: It's my

18 understanding that the port of Pittsburgh and

19 the locks and dams are going to be very critical

20 when it comes to the new cracker plant opening

21 up.

22 MS. RICHARDS: It is. And that's a huge

23 opportunity for all of us to help the economy

24 here in Pennsylvania, and so we're as supportive

25 as we can be. 88

1 REPRESENTATIVE KELLER: That's the job

2 creator out west, as we have the port hopefully

3 in the east.

4 MS. RICHARDS: Absolutely. Thank you.

5 REPRESENTATIVE KELLER: Thank you, Mr.

6 Chairman.

7 MAJORITY CHAIRMAN SAYLOR: You're

8 welcome. Representative Hahn.

9 REPRESENTATIVE HAHN: Thank you, Mr.

10 Chairman. Thank you, Madam Secretary. I have

11 two different topics. But the first one, I

12 represent parts of Northampton County. And just

13 last year, the County Council copied PennDOT on

14 the P3s and their grouping bridges together. I

15 think they have like 119 bridges that they're

16 working on.

17 So just your feeling on that, the

18 status, and if you think that's something that

19 other counties can do as a cost-saving measure.

20 MS. RICHARDS: Yeah, I was extremely

21 excited when that idea came across the P3 Board.

22 As a former county commissioner that also had

23 bridges and roadways, when a county steps up,

24 not only by enacting the $5 registration fee,

25 which Act 89 allowed counties to do to take care 89

1 of their infrastructure needs, but when they

2 also come up with an idea of how to creatively

3 take care of their assets, we're looking

4 closely. And I have told every single county

5 commissioner that I've spoken to and everywhere

6 I go, to take a look at Northampton County; I

7 think it's a fantastic example. I wish them the

8 greatest success. Of course, they're just

9 starting this process; and we want them to be

10 hugely successful. And we want every single

11 county to follow in their footsteps and to take

12 the stewardship role of their assets.

13 Our entire network is strengthened when

14 our local municipalities and counties also take

15 care of the bridges and roadways. They connect

16 and are very vital to the network.

17 REPRESENTATIVE HAHN: Great. Thank you.

18 Now I want to go to Green Light-Go. So I think

19 the Governor's '17-'18 budget provided $40

20 million for the municipal traffic signals, so I

21 think Act -- I think it was Act 101 reduced the

22 local match from 50 to 20 percent. So I know a

23 lot of municipalities try for those grants. So

24 how do you feel that funding is going to play

25 out with them and, you know, where the match is 90

1 going to -- since it's been reduced, like how

2 many more grants do you think you're going to

3 give out with that?

4 MS. RICHARDS: Yeah, we're already

5 seeing the grants just how we wanted. We wanted

6 to see more activity and we wanted to see more

7 communities and municipalities taking advantage

8 of it, and the lower match is showing that. And

9 so we know that no one knows the signalization

10 challenges and the congestion in a community

11 better than the community itself, so it's a

12 great way for us to work with the communities to

13 offer these matching funds.

14 It's important to us that there is a

15 match. And so the lower match now, again, is

16 doing exactly what we wanted, which is getting

17 greater utilization of these fees and making

18 sure that the traffic areas, the real problems

19 in communities are being addressed.

20 So we're very excited about it and we

21 hope it continues to grow and that the full 40

22 million is utilized. We're not quite at that

23 point yet.

24 REPRESENTATIVE HAHN: Okay. Thank you.

25 Living in a municipality where five state roads 91

1 come into town, we have a lot of signalling

2 problems; so that's helpful.

3 MS. RICHARDS: Yeah.

4 REPRESENTATIVE HAHN: But the other

5 thing, Governor Wolf announced that 109

6 municipalities would receive $12 million to

7 underwrite the cost of upgrading those signals

8 in that program.

9 However, the 25 million appropriations

10 for '15-'16, lapsed in June; so you can explain

11 to me and the Committee from which year's

12 appropriation the 12 million in grants will be

13 paid from.

14 MS. RICHARDS: Well, we're using -- it

15 wasn't left over. We're using it for our

16 signalization, where we are helping corridors

17 with multiple jurisdictions; so the money is

18 still being used to help communities in

19 signalization.

20 REPRESENTATIVE HAHN: Okay. Thank you,

21 Mr. Chairman.

22 MAJORITY CHAIRMAN SAYLOR:

23 Representative Boback.

24 REPRESENTATIVE BOBACK: Thank you, Mr.

25 Chairman. Over the years, PennDOT has provided 92

1 assistance with transit mergers across the

2 Commonwealth. Last month, it was announced that

3 the County of Lackawanna Transit System, Luzerne

4 County Transportation Authority, and Hazleton

5 Public Transit were still discussing potential

6 mergers with PennDOT. And that's in all my

7 area.

8 Do you have figures that show the

9 aggregate amount of the potential savings from

10 these mergers, and what would the grant funds

11 be? How will they get them provided by PennDOT,

12 as well as savings to the counties, with these

13 local match waivers?

14 MS. RICHARDS: Sure. So as of now, the

15 South Central Transit Authority is the only

16 transit agency that's receiving the local match

17 waivers. They are receiving local match that's

18 waived at the amount of $780,000, so it's

19 significant.

20 Others are also being consolidated. And

21 we have seen the Red Rose Transit Authority,

22 Berks Area Regional Transportation Authority,

23 they can consolidated. That is into the South

24 Central that I just -- just for those of you who

25 don't know what South Central is. 93

1 And that happened starting in early

2 2015. The consolidation has allowed Berks and

3 Lancaster Counties a waiver from the local

4 match. And so during the five-year period, the

5 local match savings will total $4.5 million; so

6 it is quite significant and it's allowing them

7 to invest in capital costs, keeping their routes

8 where they should be, and increasing frequency

9 if they need, which is really where transit

10 agencies should be spending their money. So

11 we're very happy to see them take advantage of

12 that program.

13 REPRESENTATIVE BOBACK: So then I guess

14 we're still in the discussion stages at

15 Lackawanna, Luzerne, and Hazleton?

16 MS. RICHARDS: That one is still moving

17 forward. So I have Rapid Transit that's been

18 working; that's York, Adams, Franklin, Union,

19 and Snyder. And I will update as far as where

20 Lackawanna -- I have that the local officials

21 are working on resolutions currently.

22 And future actions are to request

23 additional information on regional

24 consolidations of all their fixed routes and

25 their Shared Ride services; so that's where it 94

1 sits now for those -- that area.

2 REPRESENTATIVE BOBACK: It sounds

3 optimistic. Thank you.

4 And I must comment, since I have time, I

5 think it's the first time in all the years I've

6 been on Appropriations, when someone came in

7 front of us and for the first time I'm hearing,

8 I believe, four incentives: We are first in the

9 United States for something big, and they're all

10 very, very good. Was it four or five? I beg

11 your pardon.

12 MS. RICHARDS: You know what? I have

13 not counted all of them, but I know we are in

14 first in many things and I'm quite proud of the

15 work that we've done at PennDOT.

16 REPRESENTATIVE BOBACK: Excuse me. I

17 think somebody was keeping count. Did I -- oh,

18 I thought somebody was calling out --

19 MS. RICHARDS: I'm going to keep count

20 of that. But there are many firsts. And again,

21 I am very proud of the work that we've done

22 here.

23 REPRESENTATIVE BOBACK: And we are all.

24 So thank you. Thank you, Mr. Chairman.

25 MS. RICHARDS: Thank you. 95

1 MAJORITY CHAIRMAN SAYLOR:

2 Representative Grove.

3 REPRESENTATIVE GROVE: Thank you, Mr.

4 Chairman. Madam Secretary, thank you so much.

5 Question one: What affect would a $12 minimum

6 wage have on your department? Have you analyzed

7 that at all?

8 MS. RICHARDS: We have not, no.

9 REPRESENTATIVE GROVE: No? Do you have

10 any contracts which have minimum wage as any

11 criteria, set?

12 MS. RICHARDS: Yeah, we do. I don't

13 know what -- oh, the federal. All of the

14 federal contracts do.

15 REPRESENTATIVE GROVE: Okay.

16 MS. RICHARDS: But as far as any

17 analysis, I don't know if we have any more

18 information to give.

19 REPRESENTATIVE GROVE: Okay. Can you

20 provide this Committee an assessment of effects

21 of the prevailing wage threshold increase in Act

22 89? Have you looked at that at all for our

23 local government costs?

24 MS. RICHARDS: No. No, it hasn't become

25 -- no one has asked, and we haven't done that. 96

1 If that's something you'd like to see, we'll

2 take a look.

3 REPRESENTATIVE GROVE: Okay. I would

4 greatly appreciate that. We have kind of an

5 internal list of kind of newspaper articles that

6 we get. I found one -- I was reading one

7 January 20th about -- and it's about -- what's

8 the title -- I-95 Plan for a Toll Bridge at

9 Scudder Falls. And reading down here, it also

10 says, The Bridge Commission isn't the only

11 authority that has lately turned to PLAs.

12 Under Democratic Governor Wolf, PennDOT

13 is asking contractors to enter a PLA to repave

14 Markley Street in Norristown from Main Line to

15 Elm after paving nearby streets without such a

16 deal.

17 I actually lost it, so I had to do a

18 Google search. I did find another one on, I

19 guess, it was earlier from September 4th, 2015,

20 on actually the original Markley Street,

21 Norristown, where it was actually done ahead of

22 schedule. Reopening that was not done with the

23 PLA. Are you looking to do more PLAs? Is that

24 still on the table to do a PLA on that, the next

25 round of Markley Street? 97

1 MS. RICHARDS: Yeah, we were looking --

2 look, we have some challenges on a lot of our

3 projects. We have cost overruns; we have change

4 orders; we have projects that don't get done on

5 time; there are delays. So I really think it's

6 our responsibility to look at every resource

7 possible to get our jobs done on time and on

8 budget.

9 PLA is one of those resources. And in

10 discussion with the Administration, we've agreed

11 to put forth one project; and that's one project

12 out of hundreds that will be awarded and

13 advertised this year. And the Markley Street

14 project is the one that we have gotten federal

15 oversight and approval to do.

16 We did have to go through FHWA to get

17 that approval. And when that first article came

18 out on the Scudder Falls, we were still going

19 through that to see if it was even possible for

20 us to do that.

21 And so there will be one pilot project.

22 I know it has been discussed that all of our

23 projects will be done. It will be one, and we

24 will monitor it closely and we will see what the

25 results show. And if it's a huge success, we 98

1 may or we may not, look to do more. But only

2 one will be done, and then further analysis

3 whether or not there will be more.

4 REPRESENTATIVE GROVE: How would a PLA

5 reduce exchange orders? I don't understand how

6 that's possible.

7 MS. RICHARDS: Change orders. So the

8 PLAs, from what I understand from other

9 colleagues across the country, they've used them

10 quite successfully, there is -- the

11 communication is different. And I'm assuming

12 that it's tied into the process, the

13 apprenticeship process, the grievance process,

14 the other aspects of a PLA.

15 And again, I don't know. That's why

16 we're doing one pilot. And we will be

17 monitoring it closely to see what works and what

18 doesn't work.

19 But I think this is a good pilot and

20 something to move forward on; and again, we will

21 assess and analyze before deciding to do any

22 additional PLA work.

23 REPRESENTATIVE GROVE: So Scudder Falls

24 bridge was done as a PLA, correct?

25 MS. RICHARDS: From what I understand, 99

1 that is a Delaware River Joint Toll Bridge

2 project; it's not a PennDOT project.

3 REPRESENTATIVE GROVE: Have you looked

4 at that as a study? I believe that was a

5 20-percent over budget and they only had one

6 bidder.

7 MS. RICHARDS: I don't know -- I don't

8 know the details, and so I would not be able --

9 I don't know how they advertised it. I don't

10 know -- I do know that there were -- there may

11 have been a miscommunication of whether it was

12 going to be a PLA, whether it had been promised

13 to someone else. There were a lot of rumors

14 going around. So I'm really not sure all of the

15 details that surrounded that particular project.

16 Again, it's not a PennDOT project. So,

17 you know, the information on that project, we'll

18 definitely take a look at it. You know, I'll be

19 honest, we want to see more than one team bid on

20 it. I don't want to see just one team come in,

21 and that will part of the analysis. If we put

22 this PLA out and we only get one team, that will

23 be something that we take a look at.

24 REPRESENTATIVE GROVE: So part of the

25 PLA is your signatory with a trade union, 100

1 correct? So if you're not, you can't bid on

2 that. Would that kind of go against one of your

3 core requirements of diversity? Wouldn't that

4 be kind of discrimination on an open shop that

5 is non-union?

6 MS. RICHARDS: Actually, in talking to

7 the unions, they have told me that it will

8 increase diverse participation. Again, that

9 will be something we're going to take a look at;

10 but that was one of the questions upfront,

11 before considering whether or not to do a PLA.

12 That was one of my first questions that I asked.

13 REPRESENTATIVE GROVE: Okay.

14 MAJORITY CHAIRMAN SAYLOR: That's about

15 all the time you have.

16 REPRESENTATIVE GROVE: Thank you.

17 MAJORITY CHAIRMAN SAYLOR:

18 Representative John Taylor.

19 REPRESENTATIVE TAYLOR: Mr. Chairman,

20 I'm going to be the only member standing between

21 these folks getting to leave, right; is that it?

22 Am I last? Okay. With that, --

23 MS. RICHARDS: Yes. I don't know what

24 your question is, but I'll give you a quick

25 answer. 101

1 REPRESENTATIVE TAYLOR: Yeah. I'm going

2 to talk about the scanners lease first. This is

3 more of an Appropriations problem than a

4 Transportation problem. We'll be glad, as a

5 policy, to help have every police car in the

6 Commonwealth with scanners, but that cost would

7 be prohibitive. And so if you all find that

8 money, we will approve the policy.

9 Madam Secretary, I'll ask three

10 questions all at once. I'll make sure Dave

11 writes them down, so that I won't have to

12 interact with you --

13 MS. RICHARDS: I think he only said

14 about ten words; so if you want to go ahead and

15 ask Dave a question, go ahead.

16 REPRESENTATIVE TAYLOR: But I think

17 these are all pretty direct questions: One, an

18 update on Amtrak as it pertains to Pittsburgh,

19 in trying to increase some passenger trains to

20 Pittsburgh, particularly from Harrisburg. The

21 rail freight grants and whether or not we can

22 see them in time for this season.

23 And, you know, following up on something

24 Warren asked about salaries and Representative

25 Bullock about diversity, I'm sure another issue, 102

1 at least in terms of District 6 and probably --

2 I'm hearing it from central PA, as well, as to

3 the problem of trying to retain employees with

4 the salary structure to be competitive.

5 And I don't want to give this Committee

6 any more adjectives about that, because it may

7 go across all state employees; but that is --

8 had been a serious issue, and maybe you want to

9 comment on that.

10 MS. RICHARDS: Sure. I think I can

11 answer them all fairly quickly.

12 As far as competitive salaries, it's a

13 huge problem, particularly in District 6, where

14 you can work for the private sector and get paid

15 a lot more than you do at PennDOT. There are

16 certain areas where a PennDOT salary is a

17 fantastic salary, as compared to the other

18 salaries that are offered. And so those are the

19 areas where we don't have as much trouble

20 attracting good talented employees.

21 But in District 6, it's been a

22 challenge; and so we've been working with OA in

23 seeing if we can look at cost-of-living where

24 they are, if we can restructure in a different

25 way. Also, the volume of work and the 103

1 complexity of work in District 6 and

2 southeastern Pennsylvania, you can't even

3 compare it to any of the other districts. It

4 just blows them all away.

5 And if you looked at them on a graph, it

6 would be, you know, off the charts. And so it's

7 a very challenging area as well. So we've

8 looked to add certain positions; for instance,

9 an extra assistant, District 6 executive. We

10 have our press team that is fully operational

11 there.

12 And so we are looking at different ways

13 to help spread out the work. And, of course, we

14 rely on contractors in a higher percentage than

15 we do in other areas; because that's the way

16 that we can get the work done and how we can get

17 it done most efficiently with the structure that

18 we have now.

19 As far as the rail grants, that money

20 does not become available until, I believe, July

21 1st; and so we'll have all of those grants in

22 place before then. We are not losing out --

23 we're not behind right now. We did ask for the

24 applications a little earlier than we have in

25 the past, and so I think people think that we 104

1 are behind schedule.

2 But we only did that, because last year

3 we needed a little more time to assess and

4 analyze; and so we have all that information.

5 But that will be coming out. It will be voted

6 on at the next STC meeting and it will be voted

7 in well before the money is available, so we're

8 not losing any time on that.

9 And I know the first question, Dave,

10 you wrote it down. Oh, Amtrak to Pittsburgh.

11 And so we're very interested. Obviously, I'm an

12 advocate for rail. Governor Wolf is an advocate

13 for rail, and so we've been working with Amtrak

14 to get, you know, what would it cost to get one

15 more train and what would it cost for us to

16 upgrade and increase some of the speeds?

17 Because it is a long time; takes five hours to

18 get from Harrisburg -- you have to love taking a

19 train to take that train to Pittsburgh.

20 And in so many ways, it doesn't make

21 sense. And, look, we would love to find a way

22 that's cost effective; and I will not give up.

23 We'll keep looking at it. I'm really hoping

24 that my DC visit is very promising in terms of

25 rail, in terms of Amtrak, in terms of whether 105

1 it's high-speed rail or just rail investment, in

2 general; and the Pittsburgh area will be the

3 first one that we take a look at. Because it's

4 really a shame that you can't get from

5 Philadelphia to Harrisburg to Pittsburgh in an

6 efficient way by rail.

7 REPRESENTATIVE TAYLOR: Thank you, Mr.

8 Chairman.

9 MAJORITY CHAIRMAN SAYLOR: Just a few

10 comments. Particularly, in York County, we

11 border Maryland. And I got to tell you, as I

12 knocked on doors in the campaigns, a lot of

13 people with Maryland license plates.

14 So, Madam Secretary, I don't know -- I

15 thought the federal law was that you cannot

16 register your car or get a driver's license if

17 you don't have an address in the state. But I

18 hate to tell you that in York County, and I'm

19 sure it's probably happening in Adams, maybe

20 even Lancaster County, people that have moved

21 into Pennsylvania from Maryland, we've had quite

22 a few -- probably about a hundred thousand

23 people from York County drive to Baltimore or DC

24 every day.

25 And it's a question, I would suggest -- 106

1 there's another question that has to do with

2 Maryland and somebody from your department may

3 be around long enough, but I remember, I believe

4 it was during the Ridge days, that Maryland was

5 found to be guilty of not paying its fair share

6 of apportionment tax on diesel tax. I'm looking

7 to any of the people that might be around.

8 And my question is: Who audits those

9 figures to make sure that Pennsylvania is

10 getting its fair share? Is there an audit by

11 the federal government? But who does that?

12 Because we get a lot of tractor-trailers through

13 Pennsylvania, and I just want to make sure that

14 we're getting enough dollars from that that we

15 are owed.

16 I don't know if Chairman Taylor

17 remembers anything about that many years ago or

18 not.

19 MS. RICHARDS: I can tell you, that has

20 not been raised as an issue right now; but we

21 will take a look back -- I don't know, Dave, if

22 you know anything.

23 MAJORITY CHAIRMAN SAYLOR: I would be

24 interested to see if somebody does audit.

25 Because, like I said, I remember, it was like 107

1 around $300 million back many years ago. And I

2 thought they owed it to Pennsylvania, but it

3 might have been to a number of states that they

4 had not paid out appropriately.

5 MINORITY CHAIRMAN MARKOSEK: Chairman,

6 it might be the Department of Revenue that may

7 have --

8 MS. RICHARDS: It may not come under us.

9 MINORITY CHAIRMAN MARKOSEK: --

10 enforcement of that.

11 MR. MARGOLIS: Yeah. And the process is

12 quite different from the way it was some years

13 ago, but we can look into that and talk to the

14 Department of Revenue.

15 MAJORITY CHAIRMAN SAYLOR: Okay. I just

16 want to be sure we're getting our dollars.

17 MR. MARGOLIS: So do I.

18 MS. RICHARDS: I do, too. We're on the

19 same side as that.

20 MAJORITY CHAIRMAN SAYLOR: Having voted

21 for Act 89 with Chairman Taylor and a lot of

22 other members here, I want to make sure we're

23 getting every dollar we can.

24 But, Madam Secretary, I want to thank

25 you for being here today. And, David, for your 108

1 being here and your cooperation. Thank you very

2 much.

3 MS. RICHARDS: Well, thank you very

4 much. Thanks, everyone.

5 MAJORITY CHAIRMAN SAYLOR: The Committee

6 will reconvene tomorrow at 10 a.m., where we

7 will hear from the State Treasurer.

8 (Whereupon, the hearing concluded.)

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25 109

1 CERTIFICATE

2

3 I hereby certify that the proceedings and

4 evidence are contained fully and accurately in the notes

5 taken by me on the within proceedings and that this is a

6 correct transcript of the same.

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8 ______

9 Tracy L. Markle, Court Reporter/Notary 10

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