A crunch on available funding for road projects in South Dakota has officials there exploring what options might be available to ease a shortage of available dollars.

A special legislative committee met recently to discuss a potential $70 million shortfall for highway needs next year. The state has targeted $250 million to keep up with regular maintenance next year, but may have only $165 million available, KELO-TV in Sioux Falls, SD, reported.

Some members said they believe it is inevitable that taxes and fees will increase if the state, cities, counties and townships are to be able to keep pace with road needs.

Others said that the South Dakota Department of Transportation and local governments must make better use of their existing funds before more money is made available.

Data made available to the lawmakers showed that 36 percent of possible fuel tax revenues are diverted for such uses as Highway Patrol operations, snowmobile trails, the State Radio system and aeronautics projects, The Associated Press reported. The road fund could have had an additional $49 million a year ago.

Among the options brought up for consideration to increase funds is applying a sales tax on fuel, in addition to the per-gallon tax. Also a possibility is increasing a 3 percent excise tax on new and used vehicle purchases.

Any efforts to increase taxes must go through the full Legislature. A two-thirds majority vote of both chambers would be needed to raise taxes, not to mention the governor’s signature.

The panel came to no conclusions or consensus. They are scheduled to meet again after the November election.

To view other legislative activities of interest for South Dakota in 2008, click here.

– By Keith Goble, state legislative editor
keith_goble@landlinemag.com