Gas tax hike may pay for road, bridge repairs

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By Tom Saul | Saturday, February 23, 2008 12:22 AM CST | () comments

Iowa ranks poorly compared with most other states when it comes to the condition of its rural and urban pavement and bridges, state Sen. Tom Rielly said as he opened the Davenport edition of a traveling hearing on the state’s transportation needs.

“It is a stark, stark problem and we have to start to address it,” said Rielly, D-Oskaloosa, chairman of the Senate Transportation Committee, at the Friday hearing.

As the Iowa Legislature tries to cobble together a plan to raise an additional $200 million a year for road and bridge repair, officials from throughout the region seemed to agree that increasing the gasoline tax would be a logical way to come up with a large part of the money.

“We would encourage you to raise our taxes,” said Steve Ames, director of the Clinton Regional Development Corp.

Scott County Administrator Ray Wierson said a hike in the state gas tax would not have a great impact on the state’s drivers “and people coming through our state would help pay.”

In fact, Rielly said, a four cent per gallon increase would raise an additional $88 million a year and would cost the average driver in Iowa about $18 annually.

But, in December, Gov. Chet Culver said he would oppose any hike in Iowa’s 21-cent-per-gallon gas tax. The stance came in the wake of an October survey by the Iowa Good Road Association that showed that two of every three people questioned wants to see higher state spending on roads and bridges and that 81 percent would be willing to pay a higher motor fuels tax if there was a constitutional guarantee that the money would be used only for transportation infrastructure.

There simply are not the votes in the legislature to override a veto by Culver of a gas tax hike, Rielly said.

Lawmakers are looking at other potential income sources to come up with more money. State Rep. Jim Lykam, D-Davenport, said a caucus of Democratic house members has looked at increasing annual pickup truck registration fees. Exemptions would be offered for small business owners and farmers.

The caucus also examined an increase in the state motor vehicle use tax, with extra money to be dedicated to roads and bridges, Lykam said.

Bob Soesbe, a Clinton alderman, asked for state legislation that would allow local governments to ask voters to approve a local option gas tax. A one cent per gallon increase in Clinton would raise $220,000 per year, he said.

“If we can’t sell it to the people, fine,” Soesbe said. “But, if the people want it, then all the money should stay where it is raised.”

State lawmakers should simply bite the bullet and do what is best for Iowa by passing a gas tax increase, said David Watkins, a Muscatine County supervisor. Now, Muscatine County doesn’t have enough money to keep up with all the road and bridge repairs and replacements it faces.

“We can’t raise property taxes high enough to fix all our road problems,” Watkins said. “If money doesn’t come from the state or the federal government, things won’t get fixed. You should be statesmen instead of politicians and do what is best for Iowa.”

Rielly urged those present at the hearing to keep in contact with their legislators. Information from a series of 10 hearings around the state will also be shared with legislators.