Alabama, Georgia Governors Call for Transportation Funding

Governors of two neighboring states are pushing for transportation funding for their region, announcing plans to solve their infrastructure needs. Georgia Gov. Nathan Deal said in his State of the State speech that improvements need to be made to improve the efficiency of the state’s transportation network.

“That means roads on which traffic and freight move freely, ports that handle bigger ships, and airports that process people and packages more efficiently,” Deal said in his Jan. 10 remarks. He is also urging voters in 12 state regions to approve a 1-cent sales tax referendum for a predetermined list of road, bridge and transit projects when they cast ballots this summer.

Alabama Gov. Robert Bentley is also urging voters to approve more transportation funding in his state, with plans to borrow up to $2 billion for road and bridge projects. Alabama voters rejected a November 2010 plan to transfer $1 billion from the Alabama Trust Fund to pay off road and bridge improvement bonds. The fund receives money from natural gas wells drilled along the coastline in state-owned waters.

Gov. Bentley announced to the media in Birmingham that the state transportation department is moving forward with plans to build toll roads in south Alabama. State lawmakers will work on the specifics of the governor’s plan and other transportation bills when the session convenes Feb. 7.

Dayton Administration seeks new ways to finance better highways, transit systems

ST. PAUL – Governor Mark Dayton has directed Minnesota Department of Transportation Commissioner Tom Sorel to establish the Commissioner’s Transportation Finance Advisory Group. Noting that Minnesota’s highways, roads, bridges and public transit systems have suffered decline, Governor Dayton seeks to reverse this trend, starting by gathering recommendations from this Advisory Group.

The Advisory Group will identify investment opportunities to support a thriving economy and a high quality of life for Minnesotans over the next twenty years, identify and analyze the potential of various revenue sources and non-traditional approaches to transportation financing. They will also look at opportunities for public-private partnerships to invest in transportation improvements, and help develop a strategic marketing plan to obtain public support for the investment plan and any additional steps needed to obtain the funding. The Advisory Group will prepare a written report of its recommendations to the Governor and the Legislature by December 1, 2012.

“After traveling the state and meeting with business owners across Minnesota over the past several months, I have been reminded of how essential transportation infrastructure is to business success in Minnesota,” Governor Dayton said. “Workers need to be able to get to and from work, and businesses need to be able to get goods to and from their markets. We must either improve our transportation systems or else suffer the consequences of their decline. I have asked Commissioner Sorel to gather the best and the brightest minds together to help us find new, innovative ways to finance improving our transportation systems.”

Iowa Considers Fuel Tax Hike

Iowa lawmakers are seriously considering a proposed increase to the fuel tax despite the governor’s apparent lack of support for such an effort. The governor’s Citizen Advisory Commission spurred the bipartisan push in Des Moines to raise the state fuel tax by 8 to 10 cents per gallon. The 21-cent gas tax and 22.5-cent diesel tax have remained unchanged since 1989.

The 16-member advisory panel was charged with finding transportation funding options to address an annual state budget shortfall of about $220 million. The group spent two months obtaining public input about potential funding alternatives for needed transportation improvements. Sen. Tom Rielly, D-Oskaloosa, and Rep. David Tjepkes, R-Gowrie, have proposed raising fuel tax rates by 8 cents over two years and charging an additional 1 percent in new vehicle registration fees.

According to estimates, each penny added to the state’s fuel tax would generate $22 million in revenue. The 1 percent vehicle registration increase would raise $50 million per year.

Who believes that a revenue stream that was last changed in 1989 is still adequate to meet Iowa’s transportation need’s today? I could ask that about almost every state. Would you be able to afford your lifestyle today on what you were making in 1989? TW

Ohio DOT may Cancel Future Toledo Interstate Project

COLUMBUS – The Ohio Department of Transportation has proposed a scaled-back list of major transportation projects to account for available funding. The list includes shelving the ongoing reconstruction of the I-74/I-475 interchange, although other I-75 improvement projects will remain on track although most will not begin construction in the foreseeable future.

“We have for years terribly over-programmed, and people had expectations that weren’t realistic,” said ODOT Director Jerry Wray, chairman of the Transportation Review and Advisory Committee that sets the state’s highway and bridge construction priorities. “At one time there had been Tier 3, but that’s been dropped, and we have been terribly out of balance. Previous administrations chose to continue with the process and listed projects as if there was money available when there isn’t.”

Wray said the current project funding list contains $1.6 billion in projects for which funding is not available.

Improvements to the I-75/I-475 interchange are estimated to cost $170 million, and the commission is recommending demoting the project from Tier 2 to Tier 3. The commission said the project should keep its $3.2 million earmark that was previously set aside for detailed design so that planning can continue.

The temptation to over program is not unique to Ohio. Almost every state has fallen into this trap over the years. It’s just too easy to add a project and hope things work out when it is time to obligate funds. Many states have had to do what Jerry Wray has done; basically, he “trued up” his program. Phil Shucet did it in Virginia when he arrived and Chuck Cowan in Arizona. We did it in Utah after I was appointed as the Director. The real question is whether or not each state’s program is balanced right now given the lack of certainty in Washington and the decline in state revenues. If there hasn’t been a pretty serious adjustment in your state’s program and planned projects in the last 24 months then you are more than likely over programmed. Now is the time to do it if you haven’t done so already. TW

Georgia Tea Party said Repeal Transportation Law

ATLANTA – Georgia voters will not have the chance to vote on a one-cent transportation tax if Tea Party groups in the state have their way. Tea Party groups are urging Gov. Nathan Deal to repeal a law that will allow the vote because they say if the referendum passes, it will create a new tax. The groups say Gov. Deal and other Republican leaders signed a pledge opposing any increase in taxes, and that the governor is betraying that pledge by supporting the referendum.

Deal spokesman Brian Robinson said the law permitting the vote was approved before the Governor was in office, and that voters should have a say in the matter. “Every region of the state will get their own little vote,” Robinson said. “Each region can decide if the project list that has been put forward by local officials – not by the Governor, not by the state – is good for their region.”

Votes are scheduled to take place in July in 12 regions regarding individual transportation tax referenda, each tied to a specific list of transportation projects.

In this case, I feel the Tea Party is seeking to deny the public their opportunity to choose whether or not to raise their own taxes. In the republic form of government that exists in the US, it is only through the referendum process that individual citizens have a direct say on taxes. I appreciate the Tea Party’s general efforts to curb taxes but don’t believe they have the right to deny individuals this choice. They can vote for or against the referendum like anyone else. I suspect this one will pass–we’ll be sure to report on it in July. TW