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Gas tax increase officially dead for 2009

Mar. 10, 2009 5:02 pm
DES MOINES - Members of the Senate Transportation Committee on Tuesday officially declared a proposed gas tax increase dead for the 2009 legislative session.
The decision to table Senate Study Bill 1182 came after Gov. Chet Culver pledged last week to veto any gas-tax bill that made it to his desk.
However, Sen. Tom Rielly, D-Oskaloosa, chairman of the panel, said lawmakers will continue to explore ways to address a yearly shortfall in state revenue needed to meet the state's critical needs for repairing and upgrading Iowa roads and bridges.
"We'll go back to the drawing board to try to come up with other options," Rielly said. "I'm not going to take my eye off the ball."
Culver cited an infusion of federal stimulus money for infrastructure, his proposed infrastructure bonding plan and the recessionary impact on Iowans as reasons he opposes increasing the state gas tax at this time.
"I think the governor's made a politically expedient decision, but it's a bad decision," said Sen. Matt McCoy, D-Des Moines, in arguing that the deterioration of Iowa highways is an issue that won't go away and will force policymakers to "bite the bullet" on a gas tax increase at some future point.
Rielly said he had modified the proposal to boost state gas taxes by 4 cents immediately and another 4 cents on Jan. 1, 2010, to plow $28 million of the proceeds back into Iowa drivers' pockets by rebating a share of their vehicle registration fees.
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