Roadblocks remain to gas tax increase in Iowa

DES MOINES - Support for an increased gas tax has jumped this year among state leaders and lawmakers, as well as business and advocacy groups.

Still, although their numbers may be dwindling, there remain groups and individuals who vow to put the brakes on a gas tax boost.

The state for years has attempted to solve an annual $215 million hole in its transportation construction and repair budget. Multiple reports say the state's bridges are in bad shape and potential highway projects remain on the back burner while the state attempts to overcome declining gas tax revenue as a result of more fuel-efficient cars and fewer miles driven.

A few years have passed without legislative solutions, and the budget hole remains. More and more counties are bonding for road projects.

As the issue remains unresolved and gas prices plunge to five-year lows, more lawmakers and advocates have expressed support in increasing the gas tax. Business groups have said they'll back a revenue increase, Gov. Terry Branstad made road funding a central focus of this year's legislative session, and key state lawmakers have said the issue must be addressed.

Support for increasing the gas tax - last done 26 years ago - is higher than it has been in years.

But not everybody has boarded the bus to a higher fuel tax. A few holdouts remain, ready to fight to keep Iowa's gas tax right where it is.

'I'm a no, no, no, no, no, no, maybe,” said Sen. Rick Bertrand, R-Sioux City.

Last group standing?

Iowans for Tax Relief, a conservative advocacy group based out of Muscatine, is the rare organization on record this year as opposing a gas tax increase. It has vowed to fight on the issue.

'Big-spending politicians and tax-eating special interests are eagerly pushing to raise your gas tax when the 2015 Legislative Session begins in January,” reads a piece the group published in December. 'Iowans for Tax Relief will lead the fight to defeat any increase of Iowa motor fuel taxes, in any way!”

The group's political director said its opposition is simple: The state has enough money to fix roads and bridges, it just needs to practice smarter spending, like a family would in a time of need.

'That's the way every Iowan handles their budget. If they have a set amount of money coming into their home, and they have a roof that's leaking, they don't buy a new TV. They take the money out of their entertainment budget and put it toward their critical need, which is the roof that's leaking,” Ernie Adkison said. 'I think that's just good stewardship.”

Adkison said the state should re-examine its transportation funding formula to address where the greatest needs are: its farm-to-market roads.

In fiscal year 2015, Iowa devoted $260 million to secondary roads and $84.5 million to farm-to-market roads.

'We have a formula that ties the hands of the DOT, a formula that doesn't put the greatest amount of money where the greatest need is,” Adkison said. 'The DOT would say that the largest problem is the farm-to-market roads … and they get the smallest piece of the pie. I think when you give the larger piece of the pie to the smaller part of the road system, they're going to be more apt to spend it on things that aren't necessary. …

'The money's already there. It's just not being divvied up right, not being divvied out like it should be. I think that's the part that needs to be looked at (more) than how else can we bring more money into it.”

Rep. Josh Byrnes, R-Osage, said opening the funding formula for changes could lead to more complications than solutions. Byrnes, who heads the House Transportation Committee and is a proponent of increasing transportation funding revenues, said once that pie is cut, everyone would want a bigger slice.

'If we open that up for discussion and start to say we'd like to switch this up a little bit, we're going to blow this thing apart,” Byrnes said. 'What's going to happen is, let's look at street construction fund, and we have more urban legislators now. And they're going to say, ‘Hey, you guys are opening this up for discussion? Game on.' And they have the votes to trump us in the rural areas.

'So you talk to our county supervisors, our county engineers, and they're saying don't touch this.”

Adkison said there also is more money to be found by trimming fat in the overall state budget.

'If you back up and look at the overall budget, we're making an assumption that there is no fat, there is no excess anywhere else, (that) government is operating as lean as it can, and there aren't any programs that can use less money to take care of a really important need,” he said. 'I think everybody says government needs to shrink, not grow.”

Senate showdown

Bertrand thinks the same thing. There is money to be found elsewhere at a time when the state is bringing in record revenues. It's a take on the 'We don't have a revenue problem, we have a spending problem” theme.

And Bertrand is ready to go to bat on the issue. He called the gas tax 'old” and 'lazy.”

Like Iowans for Tax Relief, Bertrand thinks there is enough money coming into the system, but it's not being spent with the right priorities.

'No. 1, I think fixing a road is a good idea. I think the misconception is that if you're against the gas tax, you're against fixing Iowa roads. That's just not true,” Bertrand said. 'I believe that with technology and with the way the state is modernizing, it's time to take another look at how we do our infrastructure and how we prioritize our infrastructure. …

'We have almost a $15 billion (two-year) budget. I do think that we need to look at our existing infrastructure and prioritize what we need to do.”

Bertrand said if leaders could show a way that funds from a gas tax increase would be directed toward the most pressing need, he would be willing to consider changing his vote. Until then, he will remain firmly opposed.

'The illusion is yes, people want better roads, but they also want the caveat that it's their roads, and that's where the disconnect is,” he said. 'There's solutions out there that bring dollars back to local communities. That's where my vote holds out. …

'Show us again, specifically, where these dollars are going to be spent. Show me how this is going to economically impact the state. Show me specifically where we can finish projects.”

Fueling the debate

The first piece of legislation has been introduced. More are surely to come. The governor and legislative leaders met Thursday for a second time to discuss possible solutions.

Momentum continues to build toward some sort of gas tax increase. And yet, opponents of a gas tax hike actually may have an ally in the high standards set by lawmakers trying to pass a new revenue bill. Branstad and top lawmakers from both parties have said any legislation containing a gas tax increase must have broad, bipartisan support - a high hurdle to clear under most circumstances, but particularly something as politically uncomfortable as raising taxes.

Bertrand said he thinks the debate is shaping up to be decided by Senate Republicans, a notion he resents. He accused Senate Majority Leader Mike Gronstal, D-Council Bluffs, of playing politics with the issue by requiring widespread Republican support for any measure, although Republicans Branstad and House Speaker Kraig Paulsen have made the same stipulation.

Bertrand said he thinks there are 'more than a half-dozen” Republicans in the Senate ready to support a gas tax increase and that should be sufficient.

'(Senate Democrats) don't seem to need opposition party votes for other critical issues. So, why this one?” Bertrand asked.

Either way, although the gas tax issue continues to pick up speed as it winds through the Capitol, the road will not be without speed bumps.

'We are standing with a majority of Iowans that are saying don't raise taxes,” Adkison said.