A coalition is preparing to submit its petition for a statewide vote to raise fuel taxes to fix Oklahoma’s roads and bridges.
Oklahomans for Safe Bridges and Roads has collected more than 230,000 signatures on a petition that only needs 219,000 valid signatures by Dec. 20 to get the measure on the ballot.
The group wants the state’s diesel fuel and gasoline taxes raised to 22 cents a gallon. Currently, the diesel tax is 14 cents per gallon and the gasoline tax is 17 cents per gallon.
The anticipated revenue, estimated at $150 million annually, would be earmarked to improve state roads and bridges. A provision would lock in the amount the state Transportation Department now receives from fuel taxes so that lawmakers couldn’t reduce appropriations in response to additional funds the agency would get from the tax hike.
Former Oklahoma Transportation Secretary Neal McCaleb is among those taking the lead on trying to send the proposal to a vote of the people.
“We have 135 bridges in the state highway system that are over 80 years old,” McCaleb told The Oklahoman.
Of the 6,728 bridges on the state’s highway system, 481 need to be replaced and 1,116 are in dire need of repair, McCaleb said. More than 25 percent of the state’s 12,266 state highways and interstate highways are rated inadequate or critical.
Gary Ridley, state transportation director, told the Muskogee Phoenix the department doesn’t have the funds available to keep up with the aging infrastructure. He said ODOT had more state funding in 1985 than it does today.
If the secretary of state certifies the petition signature count, the proposal would go before the Oklahoma Supreme Court for approval. It would then head to Gov. Brad Henry who would schedule an election as early as spring 2005.
Ridley said if the proposed tax increase were to bring in the estimated amount, about $9 million would be split among cities and about $9 million would be divided among counties.
The rest would go to ODOT, Ridley said.
The Sooner State, however, is not alone in its pursuit of road dollars.
Nebraska
In Nebraska, because funding for state highway repairs and
other projects has not kept pace with demand, the state’s fuel tax will be
increased 0.6 cents per gallon next month to 25.4 cents per gallon, Roads
Department Director John Craig said.
The fuel tax was last increased Jan. 1, 2004, from 24.6 cents per gallon to the current 24.8 cents.
While the 0.6-cent increase is relatively small, larger ones likely will be considered by the Legislature next year, The Associated Press reported.
At least two proposals will be introduced to raise the fuel tax by 2 cents per gallon, said Transportation and Telecommunications Committee Chair Sen. Tom Baker, of Trenton. One he is proposing would split the revenue raised among road-building needs of the state, cities and counties, while the other would give all of the new revenue to cities and counties.
Relying on the variable rate increase to address road needs is a Band-Aid approach, Baker told The AP.
“We need to look at the long-term commitment we want to make in the state of Nebraska toward maintaining good roads,” he said.
Washington
A group of business, labor and environmental representatives
in Washington state are asking the Legislature to make replacement of the
Alaskan Way Viaduct and the state Highway 520 floating bridge the state’s top
priorities for funding.
To help pay for it, the Transportation Working Group urged lawmakers to raise the state’s fuel tax 10 cents over the next two years, which along with other sources, including license- and weight-fee increases, would raise $8 billion over the next decade for road and transit projects across the state.
In addition, the coalition came out squarely in favor of road tolls, mentioning the viaduct and 520 as well as a proposed high-occupancy toll lane on state Route 167.
Leaders told the Seattle Times they hoped to develop a proposal for the Legislature in the next few months.
A dime increase would bring the state fuel tax to 38 cents per gallon. The Legislature raised it to 28 cents from 23 cents last year.
House Transportation Committee Chairman Ed Murray, D-Seattle, said the additional money is badly needed. But he said campaign attacks this fall on lawmakers who voted for the last increase will make it more difficult to raise the fuel tax again.
In addition, officials in Vancouver, WA, intend to ask state lawmakers for authority to propose a local fuel tax as the city struggles to find funds to cover an annual $14 million transportation shortfall.
Unlike past fuel tax increases, last year’s nickel boost saw no revenue distributed to cities. Moreover, all of the dollars generated have been earmarked for specific projects. Once bonds issued to finance these projects are paid off, the 5-cent increase will go away.
Vancouver will work with other cities to urge lawmakers to approve another hike to the state fuel tax, with a provision that cities and counties directly receive a portion of the proceeds.
Minnesota
Minnesota needs an aggressive new array of taxes and fees to
pump an extra $1 billion a year into its declining transportation system,
statewide county leaders said this week.
The Association of Minnesota Counties plan relies mainly on raising the 20-cents-per-gallon fuel tax to 30 cents over two years – plus indexing it to increases in road construction costs – and allowing increases in local-option half-cent sales taxes for transportation. Other funding strategies also are included.
According to the Minneapolis Star Tribune, the initiative has bipartisan sponsorship in the Legislature, but it faces a formidable obstacle in Gov. Tim Pawlenty, who opposes state tax increases.
“There’s going to be lots of good discussion about this,” House sponsor Michael Beard, R-Shakopee, said, adding: “I don’t know if it has a snowball’s chance in you-know-where.”
The association’s plan calls for 5-cent increases in each of the next two years – eventually raising $326 million annually.
Utah
Similarly, an effort to increase fees in Utah isn’t expected
to get too far.
Despite the urging of state business leaders and transportation planners, legislators are likely to hit the brakes on a mammoth transportation funding package that includes tax increases.
The Transportation Interim Committee recently recommended a $4.5 billion transportation funding bill that would generate revenue from a quarter-cent statewide sales tax increase and a 5-cent fuel tax hike, with annual fuel tax indexing, which would mean yearly fuel tax increases. It also suggests every county be allowed to impose up to a half-cent sales tax for public transit and a quarter-cent tax for road projects, with voter approval.
The package would authorize a $20 increase in vehicle registration fees as well as an increase in registration fees for trailers, farm trucks, commercial trailers, personalized license plates and oversize and overweight permits for commercial vehicles by 10 percent. It would increase other fees and fines related to vehicle registration, license plates and commercial vehicles, and then deposit that money into a new transportation investment fund.
Senate President-elect John Valentine, R-Orem, told The Salt Lake Tribune the Legislature is going to take “incremental steps” toward funding new roadway and transit projects. The process, however, will start internally with budget prioritization and some shifting of state funds.
“Before we go to the taxpayers, we have to have our own houses clean,” he said.
– By Keith Goble,
state legislative editor
keith_goble@landlinemag.com