Iowa DOT chief: Not ready to endorse transportation revenue option

AMES – Iowa's transportation chief said Tuesday he has had positive discussions with state legislators and stakeholder groups about possible options to generate more revenue to address critical upgrades needed on highways and bridges around the state.

However, Paul Trombino, director of the state Department of Transportation, said he is not at the point yet where he is ready to endorse any of the nine options he has put on the table for consideration.

“I'm not making any predictions yet,” Trombino told members of the state Transportation Commission.

Trombino said he logged 1,100 miles in four days last week traveling the state to meet with House and Senate members, representatives of farm, business and transportation groups and anyone who is concerned about a “critical” infrastructure repair backlog the DOT estimates at $215 million a year.

DOT officials have compiled nine revenue-raising ideas that include increased fees and tax swaps to be discussed in advance of the 2014 legislative session.

Efforts to increase the state's fuel tax by up to a dime a gallon have fallen short in the past two legislative sessions. In response, Gov. Terry Branstad requested a series of options to raise revenue for the road fund as an alternative to a straight fuel tax increase.

The list includes increasing the fee for new registration from 5 percent to 6 percent; applying state excise sales tax on dyed fuel sales, which are used in farm vehicles and not currently taxed for state road fund purposes; increasing the oversize/overweight vehicle permit fees; and eliminating the state per-gallon fuel tax and replace with a state excise sales tax on fuel that would bring a 6 percent sales tax on a wholesale level.

“Overall, I think the discussions have been very positive,” Trombino told the commission. He said he expected at some point before the Legislature convenes next January he will have another conversation with the governor to see if a consensus develops for the 2014 session.

The DOT director noted that revenue projections indicate the agency will have $150 million less than they do today in fiscal 2018 and he expected commissioners would face some “tough choices” next February when they began assembling the state's next five-year transportation plan.

Comments: (515) 243-7220; rod.boshart@sourcemedia.net