Branstad would 'definitely consider' gas tax increase -- with conditions

Gov. Terry Branstad won't even utter the phrase “gas tax increase,” but the fifth-term Republican is sending signals he won't block a “motor fuel user fee” hike if it lands on his desk.

“I would definitely consider it,” Branstad said, on the condition Iowa Department of Transportation recommendations yield significant savings and lawmakers phase in the increase beginning no sooner than 2013.

After previously resisting talk of a gas tax hike, Branstad indicated during a meeting with The Gazette Editorial Board he could see himself supporting “maybe a two-step process” to raise the gas tax for the first time in nearly a quarter of a century.

That's exactly what the chairmen of House and Senate Transportation Committees, Rep. David Tjepkes, R-Gowrie, and Sen. Tom Rielly, D-Oskaloosa, respectively, have proposed. Their plan calls for an 8-cent motor fuel tax increase to be phased in over two years beginning in 2013. That would raise about $180 million a year when fully implemented. They also would increase vehicle registration from 5 percent to 6 percent – the same as the sales tax charged on other purchases.

Their plan is consistent with recommendation of a citizens' panel Branstad appointed last year.

The lawmakers' plan has support from groups including the Iowa League of Cities, the Iowa Farm Bureau and several labor unions. However, Branstad encouraged lawmakers to educate the public about the need for the increase.

“I don't think there is widespread public understanding that we have a road crisis,” he said, adding that despite improvements in the state's economy, “a lot of people are still hurting.”

The DOT is in good shape for the coming construction season, Branstad said. As a result of favorable bid prices, budget savings and about $128 million more in federal funding than expected, the transportation budget is in good shape for the coming year.

“We're going to be able to have one of the most robust road-building programs for this coming year than we've ever had,” Branstad said.

However, Branstad realizes more money will be needed in the future to maintain and improve Iowa's transportation system that includes rail, aviation, trails and public transit as well as roads and bridges.

Debate about a motor fuel tax increase got a boost from an October 2011 report from Transportation America showing nearly 22 percent of Iowa's 24,722 bridges are “deficient.” According to the report, only Pennsylvania and Oklahoma have a higher percentage of deficient bridges.