State Legislators Tell Their Peers It is Possible to Raise Gas Tax, and Give them Guidance on How to Do It
August 13th, 2015 | By: Maria Matthews
State legislators from around the country were in Seattle last week for the annual National Conference of State Legislatures (NCSL) Legislative Summit. Approximately 5,000 state legislators, legislative staffers, federal officials and others attended the meeting to gain invaluable knowledge from experts and fellow legislators to take back to their respective states. Attendees participated in an array of policy-producing committee meetings, issue forums and deep-dive sessions. Transportation funding remains a hot topic for state lawmakers, and the conference featured a “deep-dive” session entitled “Filling Up the Tank: Funding Transportation,” which provided legislators a forum to discuss developing sound transportation plans in their states that create sustainable revenue, prepare for the future and meet immediate needs. Rep. Judy Clibborn, a Democrat who chairs the state’s House Transportation Committee and Senator Mike Vehle, a Republican from South Dakota who has been a leader on transportation issues as well, gave a joint presentation on how their respective states were able to pass gas tax increases. The lawmakers identified some common steps that need to be taken to generate support for, and achieve passage of major transportation funding legislation. Those included:- Generate bipartisan support, specifically through the work of a legislative task force made up of members of both parties.
- Build a coalition of allied interest groups including the business community.
- Support from the Governor and State Department of Transportation is vital.
- Determine the state’s financial need, and set goals before discussing increasing taxes.
- Take the discussions on the road – hold meetings around the state to discuss the need for transportation investment.
- Flexibility and compromise also important.
Special Sessions Tackle State Infrastructure Needs
June 25th, 2015 | By: Maria Matthews
![ph1[1]](http://www.infrastructurereportcard.org/wp-content/uploads/2015/06/ph111.jpg)
With summer upon us, many state legislators are finding themselves stuck in “summer school” in order to hammer out bills to address growing infrastructure needs.
With the exception of a few states who meet year-round, most state legislatures will convene anywhere from 60 to 100 days. Unfortunately, this year many of states with short sessions now find themselves working well into the summer months in order to reach common ground on bills that will fund surface transportation in their state.
Whether is sticking it out at the state house beyond their required adjournment date or being called back by the Governor until a deal is reached, a healthy handful of states find themselves working tirelessly to find a solution. Our summer watch list includes: California, Illinois, Maine, Oregon, South Carolina, and Washington.
- California’s Governor Jerry Brown called for a two week special session to focus on the state’s investment in transportation infrastructure. With the state facing a number of competing proposals—and needs—the hopes is to develop a long-term and sustainable funding solution. From high speed rail to road repair, Governor Brown is looking to the legislature to deliver a package that will improve public safety and secure the state’s economic future.
- Illinois finds itself in an extended regular session as it moves to reach a balanced budget that includes transportation and water infrastructure funding. At present the legislature is delivering budget bills in piecemeal fashion as it finds itself at an impasse with the Governor’s Office. The 2016 fiscal year begins on July 1, 2015 and without a budget in place Governor Rauner has indicated program cuts would begin to take effect. Up to now, it is expected the Department of Transportation will not be affected.
- Maine, like Illinois, finds itself in the middle of a larger budget battle. The most recent proposal was met with a number of vetoes (and later veto overrides) including the separate highway and transportation budget. Governor LePage removed $2.9 million in line items from the state’s transportation that will require additional votes in the state Senate to be restored. This after a number of promising bills that would have established study commissions to assess the overall condition of the state’s surface transportation systems did not advance.
- Oregon with its Vehicle Miles Travelled (VMT) program set to start July 1, 2015 the legislature is still in discussions with Governor Kate Brown over funding $200 million in roads repairs through a 4-cent gas tax increase. With rumors a deal is near we expect that Oregon legislators will be among the first to head back their home districts.
- South Carolina’s legislature burned the midnight oil in Columbia and reached that will allocate an additional $216 million to fund county road maintenance and repairs beyond the $71 million already distributed among counties from their portion of the state gas tax. The transportation budget also includes the potential for $500 million in state bonds for large highway projects. The bill has been sent to Governor Nikki Haley for signature as legislators prepare to return home for the summer.
- Washington State’s legislature has already push through and received Governor Inslee’s approval on the operating portion of the Department of Transportation’s budget. The legislature nearing the end of its second special session, has again stalled when it comes to reaching agreement on a funding measure. While there was consensus for the package that included a 11.7 cent per gallon gas tax increase during the regular session, discussion that would lead to revenue generation for highways, bridges, and ferries, have been put in a holding pattern behind larger budget negotiations.
Raising Revenue for Infrastructure: Who will be next?
April 14th, 2015 | By: Maria Matthews
Whether it’s been increased, decreased, or frozen the 2015 legislative session has seen a high level of activity from states attempting to modify their gas tax to keep up with their infrastructure needs. We’re keeping a close eye on the nearly 40 states that are still in session and hopeful they will vote “yes” for infrastructure time and again. Among the states to watch closely are Michigan, Missouri, Nebraska, New Jersey, South Carolina and Washington. All have hinted they might take action this year. Here’s what to expect and watch for:- Michigan has put its funding decision in the hands of voters. They’re being asked to go to the polls on May 5th to raise the sales tax by 1% and increase vehicle registration fees. The legislature doesn’t adjourn until December so in the event the ballot measure fails, the state lawmakers will likely head back to the drawing board.
- Nebraska’s legislature is two rounds of voting away from a phased in 6-cent per gallon increase. The bill may meet opposition from the Governor, if it clears the legislature. Its next hurdle would then be a veto override.
- New Jersey is in the unusual position of having to raise revenues to preserve its Transportation Trust Fund The fund is expected to run dry sometime this summer and will indeed impact the way The Garden State maintains its highways and bridges.
- South Carolina has a number of proposals on the table. More importantly than the number of options being considered is the fact that the Legislature and the Governor will need to find common ground when it comes to raising additional revenue for roads. In her State of the State Address, Governor Nikki Haley indicated she would support no more than a 10-cent per gallon tax increase and only if there were offsets in other areas to keep the state competitive with its neighbors.
- Washington state’s legislature has proposed an 11-cent per gallon increase as part of a larger transportation funding package that would also increase a number of driver fees. With a projected adjournment date just around the corner, April 26, hopefully they will finish their work with decisive action for transportation investment.
Tags: Michigan, Nebraska, New Jersey, South Carolina, state, state government, Washington
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Seven States Say “Yes” to Gas Tax Modifications
April 13th, 2015 | By: Maria Matthews
Seven state legislatures used this year’s session to address infrastructure investment. These states used a variety of available revenue sources to raise money for their aging roads and bridges. No matter what sort of package these states put together, the common thread was that they all included an adjustment of the gas tax.
ASCE supports an all options on the table approach to ensuring transportation infrastructure receives adequate funding. States that followed suit and pushed through funding measure that included gas tax increases include:
- Georgia – Governor Nathan Deal signed a $1 billion transportation funding package approved by the General Assembly on March 31. The bill converts the current state sales tax on gas to an excise tax set at 26-cents per gallon for passenger vehicles and 29-cents per gallon for commercial vehicles among other fee increases. Despite the size of the package, it is estimated that much of the newly generated revenue will be directed toward the maintenance and improvement of existing roads.
- Idaho – Idaho extended its legislative session for the purposes of addressing its funding shortfall. After pushing through competing proposals, the two chambers came together in a last-minute conference committee to achieve a 7-cent increase effective July 1, 2015 and a combination of increase user fees and access to available funds from future budget surpluses. While a great stride for Idaho, unfortunately, this bill will only generate an estimated $94 million of the $262 million in additional funding the state needs. (This bill is currently awaiting Governor Butch Otter’s signature.)
- Iowa – The first and fastest to act on an increase to their gas tax. While the vote was many years in the making, both chambers consented to raising the gas tax by 10-cents per gallon within a matter of hours. Governor Terry Branstad signed it into law the next day and four days later more money was being raised for transportation projects. The revenue generated by this increase will be used to fund the maintenance of Iowa’s structurally deficient bridges and provide an additional revenue stream for transportation projects at the local level.
- South Dakota – Governor Dennis Daugaard signed into law a 6-cent per gallon gas tax increase effective on April 1. It is estimated the increase in the gas tax and other motor vehicle fees will generate $85 million a year for state and local transportation projects. The measure also creates a “local bridge improvement grant fund” through which some of the newly generated revenue will be distributed.
- Utah – Utah was the second state to approve a gas tax increase in 2015. The increase goes into effect January 1, 2016. It will also continue to increase in future years using a system similar to the state’s sales tax. The bill also imposes a 12% tax on the wholesale price of gas when the price of gas reaches $2.45 a gallon and the overall gas tax rate been capped at 40-cents. Utah has made a number of positive investments in its transportation systems in recent years and this increase will ensure the state can plan accordingly for wear-and-tear and meet the needs of the growing population.
- Kentucky –The legislature here voted to freeze its gas tax at 26-cents per gallon. While this is about a 1.5-cent per gallon decrease, it avoids a projected 5.1-cent per gallon decrease in upcoming months. The legislature also used this measure to modify its funding formula in the hopes of preventing future dips.
- North Carolina – In a single day, the legislature passed and the Governor signed a 1.5-cent decrease in its gas tax effective April 1 and a reduction to 34-cents per gallon by January 2016. While this will not raise funds immediately, like Kentucky’s freeze, this measure will prevent a dramatic drop in the rates later this year. A new formula for calculating the gas tax will take effect on January 1, 2017 and is expected to result in additional revenue, in the form of a projected 2% increase per year, for the state’s Highway Trust.
States Stepping Up
March 24th, 2015 | By: Becky Moylan
A growing number of states are taking action during their legislative sessions to increase investment in transportation. This trend is in vogue for several reasons. First, many states that have taken action have done so after years of kicking the can down the road. For example, Iowa’s 10-cent increase is the first boost since 1989. In that time, the cost of most other goods has nearly doubled. Yet, Iowa was trying to fund 2015 roads and bridges on 1989 dollars. That underinvestment was costing the state’s economy in other ways, as a recent assessment by TRIP demonstrated. Iowa’s roads and bridges are costing each Iowan $2 billion in additional vehicle operating costs, lost time and fuel due to traffic congestion, and financial costs from traffic accidents. Thanks to the increased revenues, the state will begin addressing many of its needs. Second, bipartisan action reflects the increasing understanding that deferring maintenance in the face of a funding deficit hurts economic competitiveness. Utah, another state that passed gas tax increase legislation this session, is expected to have huge population growth in the coming decades. To meet future needs, as well as address a projected funding shortfall, that state needed to increase its investment. Investing in roads and bridges has historically been a place of agreement from both sides of the aisle, and that trend continues this year. Another reason we have seen action is that people are sick of potholes and sitting in traffic and are becoming increasingly vocal about their desire to have safe, well-maintained roads and bridges. In the press release South Dakota Gov. Daugaard issued after signing his state’s gas tax increase into law, he emphasized that maintaining roads and bridges is one of the fundamental functions of government. The more lawmakers hear from constituents on the need for better roads and bridges and greater access to transit, the more likely they are to make it a legislative priority. Several other states are poised to take action this year that would better fund transportation. In legislative action, Idaho, Georgia and Washington are all considering and compromising on bills that would address each respective state’s needs. Also on the horizon are Minnesota, North Carolina and Nebraska. In Michigan, voters will head to the polls on May 5th to decide on a ballot measure that would increase funding for the Great Lakes state’s transportation network—a measure endorsed by many influential groups, the Governor, and the Detroit Free Press. All of this action at the state level, however, cannot take the place of the federal government’s essential role in transportation investment. To continue the momentum of this year’s state action—along with the trend of the past few years—the U.S. Congress needs to find a long-term, sustainable solution to fix the Highway Trust Fund. If they fail to act, our nation’s economic competitiveness is in jeopardy and states will be stuck with a much larger tab, or an even longer backlog of projects.Tags: congress, gas tax, highway trust fund, state government
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Lt Governors Talk Infrastructure Investment
March 19th, 2015 | By: Becky Moylan
ASCE Executive Director Tom Smith addressing the group.
State Legislators Come Together to Discuss Infrastructure Issues
December 15th, 2014 | By: Maria Matthews
State legislators and legislative staff from around the country gathered in Washington, DC last week to share innovative solutions to the pressing problems facing states, and infrastructure issues were among the topics they tackled. During National Conference of State Legislatures (NCSL) annual Fall Forum, several sessions focused on infrastructure issues that are facing state policymakers. Department of Transportation Secretary Anthony Foxx told those in attendance that long-term, bipartisan solutions are needed to address the nation’s infrastructure needs. Lawmakers heard from representatives of the National Association of Regulatory and Utility Commissioners about resiliency efforts in the states to protect critical infrastructure during natural disasters. Rep. Linda Harper-Brown of Texas led a discussion on how states can utilize public-private partnerships to finance transportation infrastructure projects by understanding various revenue and financing approaches, and evaluating the policy implications and potential benefits and risks of partnering with the private sector. Another session focused on managing water concerns through hydraulic fracturing. The session educated legislators on how this process works, what chemicals are used and what this means for water quality in the states, as well as what legislatures are doing to protect water quality. NCSL’s National Resources and Infrastructure Committee developed these sessions. The committee is one of nine NCSL Standing Committees that educates Congress and federal agencies about state concerns and serves as a forum for state legislators and legislative staff to learn about and share information regarding programs and initiatives in other states. In particular, this committee has jurisdiction over state and federal energy, environment, agriculture and transportation programs, legislation, regulations and policies. As we have seen in recent years, the lack of action by Congress on infrastructure issues has resulted in the states continuing to take the lead, and meetings hosted by NCSL and the Council of State Governments (CSG) provide valuable venues for state policymakers to exchange information and ideas on these critical issues. ASCE has maintained partnerships with both of these organizations to help serve as a resource for state legislators during these discussions.State Legislators Invited to Dream Big!
September 23rd, 2014 | By: Becky Moylan
Last week, ASCE hosted state legislators from nine states at the Washington office as part of a Council of State Governments (CSG) Transportation Policy Academy. ASCE has been a regular sponsor of these forums that bring state legislative leaders together to discuss transportation issues and the challenges they are facing in their respective states. In addition to a presentation on the 2013 Report Card for America’s Infrastructure, the event also featured a luncheon presentation on plans for an IMAX movie Dream Big!, which ASCE and the ASCE Foundation are pursuing to put engineering dramatically in the public eye. Lawmakers from Georgia, Hawaii, Kentucky, Nebraska, New Hampshire, North Carolina, South Dakota, Vermont and Washington were in attendance.
State Legislators visit ASCE’s Washington office during the recent CSG Policy Academy. L-R: Rep. Curtis King (R-Washington), Rep. Patricia Higgins (D-New Hampshire), Rep. Jay Roberts (R-Georgia), Sen. Mike Vehle (R-South Dakota), Rep. Diane Lanpher (D-Vermont), Rep. Ryan Yamane (D-Hawaii), Sen. Ernie Harris (R-Kentucky), Sen. Jim Smith (NP-Nebraska), Rep. William Brawley (R-North Carolina)
Tags: CSG, dream big, state government, transportation
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Missourians Asked to Vote “Yes” on Sales and Use Tax Increase
July 8th, 2014 | By: Maria Matthews
On August 5, Missourians go to the polls to weigh in on the future of the state’s transportation fund. Rather than enacting a temporary fix through an incremental gas tax hike, the Missouri Legislature put the matter in the hands of constituents in the form of Constitutional Amendment 7 which will appear on the August 5 ballot. If passed, the constitutional amendment will increase the sales and use tax three-quarters of one percent for a period of 10 years. This increase will establish a dedicated funding source not only for the state wide transportation system but, also county and city roads. With the exception of everyday expenses like, food, gas, utilities, or home and car payments, an additional three-quarter of one percent tax will be added to the existing state sales and use tax. In fact, during this 10-year period the state will be prohibited from raising the gas tax! It is estimated the proposed sales tax increase could lead to $5.4 billion over the lifetime of the tax — approximately $600 million of which will be diverted to county and city transportation projects. To put this into perspective, the Missouri DOT Long Range Transportation Plan estimates that over the next 20 years, Missouri has at least $70 billion of infrastructure projects requested throughout the state, but only $17.3 billion of available funds are expected to be available. A “yes” vote will ensure a reliable and sustainable source of revenue for the Missouri’s transportation fund. When August 5th arrives we ask that voters remember this: ✓ Money from the tax will only be spent on the improvement of roads, bridges, and other priority transportation projects in Missouri. ✓ 90% of the revenue will fund priority transportation projects, statewide, through the Missouri Department of Transportation (MoDOT). ✓ 5% will be given to counties and 5% given to cities for local transportation projects. ✓ All projects completed through MoDOT will be voted on by the Missouri Highway and Transportation Commission and completion will be constitutionally guaranteed. ✓ This sales tax will only apply to non-essential items, specifically exempted are: groceries, gas, utilities, mortgage and car payments, healthcare, prescription drugs, education, and retirement savings. ✓ Creating the tax through a constitutional amendment prevents future politicians from diverting funds to non-transportation spending. In anticipation of the additional funding, MoDOT has even updated its project list. Failure to increase the sales tax will mean status quo when it comes to Missouri’s transportation infrastructure. For this reason it is critical Missourians vote “yes” on Constitutional Amendment 7 and help lawmakers direct much needed funds toward maintaining, and improving, statewide transportation systems.Tags: ballot, economy, Missouri, state government, transportation, vote
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