Tom Warne Report, 20 March 2014
Iowa lawmakers are looking at several alternatives to help solve the state’s $215 million estimated annual transportation funding shortfall.
State officials are hesitant to raise the 21-cent-per-gallon state gas tax, but Gov. Terry Branstad said he is open to options for funding plans. Meanwhile, Transportation Director Paul Trambino said there are absolutely no options available to fix the state’s transportation funding concerns.
In response, state lawmakers are working on several potential answers to the sluggish road and bridge revenues. A bill in the Senate sponsored by Sen. Joni Ernst, R-Red Oak, would require one-half of 1 percent of the state sales tax revenue collections be diverted to the road use tax fund for the next 20 years. That proposal is currently in the Senate Ways and Means Committee. The committee is also considering a proposal by Sen. Amy Sinclair, R-Allerton, authorizing transfers of 2 percent of the adjusted gross revenue for the fiscal year from the general fund to the transportation fund. Based on this year’s revenue, that shift would send $130 million to road work.
The measure in the Senate Appropriations Committee also looks to pull money from the state’s general fund to pay for road work. SF2072 would dedicate $200 million for repairs, construction and maintenance of local roads and bridges. A similar bill in the House by Rep. Lee Hein, R-Monticello, would deposit up to $220 million annually from the general fund to the road fund. In years that the full amount could not be allocated for transportation work, the fuel tax rates would be increased to account for the difference.
“At the end of the year, the temporary tax increase reverts back to zero,” Hein wrote on his website. “Then the process starts over again.” Hein’s measure is in the House Transportation Committee.