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Is this the year for a gas tax hike?
Nov. 10, 2014 8:14 pm
DES MOINES - Several Iowa lawmakers say it's time to explore stronger funding for the state's roads and bridges.
The topic is not new, but with the pressure of election season removed and Iowa Gov. Terry Branstad ready to explore new funding methods for Iowa's road use tax fund, some think now could be the time for a breakthrough.
'I do believe this is the year,” said Rep. Brian Moore, R-Bellview. 'It will be on front burner. I think this is the year it will get done.”
Two proposals already have been floated, and Branstad has said he wants to hear options.
One proposal calls for increasing the fuel tax by 10 cents per gallon over three years. The fuel tax, which ranges from 19.5 to 22 cents per gallon, depending on the type, covers about one-third of road-use fund.
It hasn't been raised in 25 years and, with people driving less and buying more fuel-efficient vehicles, some say an increase can help stabilize the road use tax fund, which pays for roads and bridges in Iowa.
A second option, called a hybrid approach, suggests decreasing the gas tax by five cents per gallon but adding a five-cent sales tax to fuel. The hybrid option potentially could be a longer term solution because the fee could adjust with inflation.
Moore favors the straightforward gas tax increase but said he is open to the hybrid.
Nearly $800 million of Iowa's $1.2 billion road use tax fund goes to roads and bridges, many of which are in need of repair. One in every five bridges in Iowa is considered structurally deficient.
The road-use fund is in a precarious spot, though. The buying power has not kept up with inflationary costs of construction such that there's a $700 million gap, according to an Iowa Department of Transportation presentation.
Branstad has indicated he sees adequate funding as a priority, but he hasn't been specific as to what exactly he wants.
'The governor is interested in having a conversation with leaders from both parties of the Legislature to explore ways Iowa can ensure our roads and bridges are adequately funded moving forward,” Branstad spokesman Jimmy Center said.
Some, such as Rep. Sally Stutsman, D-Riverside, who also supports a gas tax increase, are pleased to hear Branstad's comment.
'I think through the last few years, support has been growing and now there's not the pressure of the election, that's really big,” said Stutsman, who is also on the transportation committee. 'And that he's taken a leadership roll, that's really big.
'It's always in the back of everyone's mind, if this pass in the House and it passes in the Senate, that the governor won't sign it. That's always been a big concern.”
Paul Hanley, with the Public Policy Center and a University of Iowa associate professor of civil and environmental engineering, said he believes it will be discussed, but he remains doubtful the legislature will take action either on a gas tax increase or a hybrid approach.
'The state legislature, I still believe, will reject any increase on a fuel tax,” he said.
Instead, Hanley expects the state to cover funding gaps by diverting more money from the state's general fund.
Democrats and Republicans will be meeting in December to discuss priorities for the upcoming legislative session, at which time the road-use tax fund will go through a more thorough discussion.
Stutsman and Moore both said they expect a proposal to come up early in the legislative session.