Culver threatens gas tax veto

DES MOINES – Gov. Chet Culver removed all doubt Friday that he would veto any gas tax increase that lawmakers send to his desk this session.

“I have been clear and consistent in my opposition to an increase in the gas tax, but let me leave no doubt: I will veto any increase in the gas tax," Culver said in a statement.

"“I will not sign an increase in the gas tax, I will not make Iowans pay higher taxes, and I want legislators to know this before spending time on an issue when we have more pressing concerns,” he added.

The governor definitely staked out his opposition as a preemptive move to head off possible votes on the issue by transportation committees in the House and Senate next week.

Top Democrats on those committees had proposed increasing the state's gas tax by 4 cents a gallon upon enactment and another 4 cents on Jan. 1, 2010. Backers said that phased-in approach would have generated $168 million by early 2011 to cover a projected yearly shortfall in road-use tax revenue needed to upgrade and repair critical transportation needs.

Iowa transportation officials are in the process of earmarking up to $358 million in federal economic stimulus funds for "shovel-ready" projects over the next 18 months. Culver also has proposed a $700 million infrastructure bonding initiative that would generate additional funds for highways and bridges.

Sen. Tom Rielly, D-Oskaloosa, chair of the Senate Transportation Committee, said earlier this week that those interim steps will help spur needed improvements and jobs, but an additional gas tax increase is needed to address the state's long-term critical transportation needs.

Culver has repeatedly voiced his opposition to raising taxes during a time of economic recession but stopped short of issuing a veto pledge until Friday.

"We have many important issues to address this year, including creating new jobs, but raising taxes on hard-working Iowans is not one of them," the governor said in his statement.

“In the midst of an economic recession, the worst since the Great Depression, we need to create jobs, not take money out of people's pockets at a time when so many are facing financial challenges," he added. “The fact is we have better alternatives when it comes to improving Iowa's roads and bridges than making Iowans pay more money at the pump."

Legislative Republicans applauded Culver's veto message.

"I'm pleased that the governor came out today and said he's ready to start vetoing tax increases," said House GOP Leader Kraig Paulsen of Hiawatha. "As the governor says, there could not be a worse time to raise taxes on hardworking Iowans than during this time of economic downturn."

Paulsen urged the governor to also take the issue of eliminating federal deductibility for state income taxpayers "off the table" by issuing a similar veto threat against any legislative attempt to pass a repeal this year.