nevada highway users coalition
June 11, 2008
 

Dear Highway Users,

We thought it would be interesting to look back into history and see exactly how and why it was decided to utilize the gas tax as a mechanism to pay for our highways.

The article below, written by Dana Bennett, a former LCB staffer and lobbyist, and currently a PhD student in history at Arizona State University, looks at how the “Good Roads Movement” in the first quarter of the 20th Century pushed for more resources to be made available for roads, especially in rural states with smaller populations and limited tax bases. It makes clear that after the 1916 Federal Aid Act cleared Congress, Nevada was forced to engage in a serious public policy debate over how to generate the necessary state funds to leverage newly available federal dollars.

In a nutshell, that became the foundation of why Nevada went to utilizing a gas tax as opposed to what had, up until 1920, been a property tax. Like so many other policy debates, and much like the one we see today regarding adequate investment, the road to funding was long and winding. However, at the end of the day, the Nevada legislature acted with both courage and foresight by doing what was necessary to enhance the road system at a key time where demand was growing rapidly.

Similar courage and foresight is called for today as Nevada faces 21st century challenges.

Sincerely,
Nevada Highway Users Coalition

http://fixnvroads.com/GasTaxOrigins.pdf

 
MEETING NOTICES
 

The Transportation Issues Committee has scheduled its last two meetings:

July 2, 2008 (1:30) and
August 26, 2008 (1:30)

Grant Sawyer State Office Building – Room 4401
555 E. Washington Ave., Las Vegas

Videoconferenced to:

Legislative Building – Room 3138
401 S. Carson St., Carson City


The Reno Chamber of Commerce is holding a Public Policy Forum

June 26, 2008 (7:30 am)

Chamber of Commerce Office - Sierra Nevada Room
1 East 1st Street, #16, Reno

The agenda includes representatives from the Regional Transportation Commission (RTC) of Washoe County. They will be discussing the two questions on the November ballot concerning transportation funding.

Please RSVP by responding to this e-mail or contacting Tray Abney at 775-337-3043.

Also, the event is open only to Chamber members.

For more information on the Reno Chamber of Commerce, please visit:
http://www.reno-sparkschamber.org/

 
 
Please email us about your highway experiences at:
tellus@fixnvroads.com.
 
If you would like to learn more about NHUC's educational efforts or to arrange for a representative to speak to your group or organization, please email us at:
contact@fixnvroads.com.
 
On average, the typical American now travels about 14,500 miles annually including 4,900 miles on long-distance trips each year.

Source: www.transportationfortomorrow.org

 

 

House committee hears testimony about infrastructure needs
Looking towards the looming federal reauthorization of the surface transportation legislation, the US House Transportation and Infrastructure Committee held a hearing last Thursday that included intense comments from Chair Rep. James L. Oberstar (D- MN).

“The collapse of the I-35 bridge in Minneapolis on Aug. 1 served as a reminder of the critical importance of our infrastructure. Though this tragedy directly impacted the residents of my home state of Minnesota, aging infrastructure is a problem not confined to one state,” Chair Oberstar stated.

“This collapse demonstrates the need to make a commitment to invest in the maintenance and major reconstruction our nation’s infrastructure. Many of the nation’s surface transportation facilities are being stretched to the limit of their design life and beyond.”

Other opening commentary from committee members included these remarks from Rep. Peter DeFazio (D- OR), “The impact of our aging network has a direct effect on Americans’ everyday lives. According to a recent study by TRIP, 23 percent of the nation’s major metropolitan roads have pavements in poor condition, resulting in rough rides that cost the average urban motorist $413 annually in additional vehicle operating costs.”

For more, please visit:
http://www.landlinemag.com/todays_news/Daily/2008/Jun08/

Louisiana legislator calls for fuel tax suspension
Talk of “gas tax holidays” continue.

In an effort to appease constituents who are feeling pain in their pocketbooks at each fill-up, a Louisiana state lawmaker has offered legislation that urges a rollback of the state’s per-gallon fuel taxes during the peak summer travel season.

Intended as “a needed respite from high fuel costs,” Rep. Wayne Waddell, R-Shreveport, has proposed a suspension of a portion of the state’s per gallon tax on motor fuels for four months. The state is encouraged to suspend collection of 16 cents per gallon collected on fuel purchases from July 1 to Oct. 30.

The state’s per-gallon tax rate on gas and diesel is 20 cents. How the tax holiday would affect the status of the International Fuel Tax Agreement (IFTA) requirements for miles driven in Louisiana is unclear.

A fiscal note on the non-binding resolution estimates about $152 million in lost revenue to the state’s Transportation Trust Fund. There is no provision that addresses how the state would compensate for the lost revenues.

For more information, please visit:
http://www.landlinemag.com/todays_news/Daily/2008/May08

Georgia governor freezes fuel tax rates until at least January ’09
While various states still are discussing “gas tax” holidays, Georgia is actually taking action to reduce the costs of increasing gas prices on residents.
Gov. Sonny Perdue this week signed an executive order to suspend a scheduled increase in Georgia’s tax collected on fuel purchases that was due to take effect July 1. The action will result in a loss of as much as $80 million in state revenue for roads during the next year.

Georgia law requires the state’s Department of Revenue to recalculate the state excise tax and sales tax on motor fuels every six months to adjust for changes in prices. The excise tax is 7.5 cents per gallon with the sales tax charged on top of that.
With fuel prices hovering around $4 per gallon across the state, fuel tax rates were set to increase next month. The diesel tax was slated to move up 4.2 cents per gallon to 16.5 cents – up from the 12.3-cent-per-gallon tax now applied.

For more information, please visit:
"http://www.landlinemag.com/todays_news/Daily/2008/Jun08/

$1 billion bond may help transportation
Last month a Blue Ribbon committee in North Carolina issued a report right before a brief summer session of the General Assembly.

The 21st Century Transportation Committee says bonds are the best way to pay for short-term transportation improvements this year. One of the biggest recommendations is a bond referendum to go on ballots statewide in November for at least $1 billion for transportation needs. Other suggestions included: stopping the transfer of $172 million a year from the Highway Trust Fund to the General Fund and giving local governments the authority to raise sales taxes to help pay for local transportation projects.

It should be pointed out that it is unclear if the legislature will move forward with this effort as both the House Speaker and Senate President have indicated a bond package may need to wait until next year.

For more information, please visit:
http://news14.com/content/politics/595718/
and
http://www.charlotte.com/204/story/656187.html

Alabama bills that died called on taxes, bonds to fund road work
Despite reviewing multiple bills designed to provide assistance with funding much needed road work in Alabama, the legislature recently wrapped up their regular session without approving any major initiatives.

The first bill was intended to help replace bad bridges. A bond issue of $275 million was sought for structurally deficient county bridges. Funding included in the bill would have gone for fixing 1,576 bridges with low sufficiency ratings.

The bond issue was part of a four-bill package. Other parts of the package included an indexed fuel tax, local fuel tax options, and moving the point of collection of motor fuel taxes back from distributors to refineries. However, at this point, each initiative will have to wait until the 2009 Session.

http://www.landlinemag.com/todays_news/Daily/2008/Jun08/

 

NACO Adopts Transportation Resolution
On Friday, May 30, the Nevada Association of Counties (NACO) passed a resolution in support of additional funding for Nevada’s roads. The resolution acknowledges the growth in the state as well as the current funding challenges. Consequently, the resolution called for the “legislature and governor to make it the highest priority to enact legislation in the first 45 days of the 2009 legislative session to generate new sources of dedicated, long term, sustained funding for road construction, maintenance and repairs so that a certain heavier burden on Nevada taxpayers can be avoided in subsequent legislative sessions.”

The resolution also indicated NACO embraces various alternative financing mechanisms like public/private partnerships and called on all Nevada Boards of County Commissioners to adopt a similar resolution.

To see the full resolution, please visit:
http://www.fixnvroads.com/pdf/Resolution_0805.pdf


Background on Upcoming Ballot Questions Seeking More Transportation Funding For Washoe County Region
As was mentioned in the May 19 newsletter, the Washoe County Regional Transportation Commission (RTC) voted on Friday, May 16 to request the Washoe County Commission to place two ballot questions before voters in November in an effort to remedy looming transportation funding shortfalls in the region over the next 30 years. One question is regarding road funding and the other is about mass transit funding needs.

A $5.2 billion deficit is anticipated since only $9 billion is expected to be available under current system ($3.2 billion from Federal and state funds and $5.8 billion from regional and local funds). The primary causes of these shortfalls are increased inflation, increased costs, erosion of purchasing power, as well as growth in travel per person as the community grows.

Additionally, the needs for mass transit are estimated at $3.1 billion for the time period from 2008 to 2040 or a shortfall of $1.09 billion as estimated revenues are only $2.18 billion. This question would not need to be passed by the legislature if passed by the voters in November 2008.

Both of these questions are likely to be on the agenda at a July meeting of the Washoe County Commission. We will keep our readers posted regarding new developments.

Coalition Board Member Urges Congress to Stimulate the Economy
A long standing member of the NHUC Board of Directors, Jack Harker, recently submitted a letter to the Reno Gazette. The letter outlined the potential benefit the nation as a whole could receive if Congress passed a highway funding bill and called on Congress to act quickly to stimulate the sagging economy.

To read the full letter, please visit:
http://news.rgj.com/

Nevada Could Lose Over $100 Million in Federal Transportation Funding and 3,500 Jobs without Highway Trust Fund Fix
A recent analysis conducted by the Transportation Construction Coalition of Federal Highway Administration (FHWA) numbers concluded that Nevada would lose $101,212,812 in federal highway dollars if there is not a fix to the projected $14 billion 2009 shortfall in the Federal Highway Trust Fund. Those dollars are expected to also have a serious impact on employment in the state as well. The Coalition’s analysis estimated that if that cut in highway funding is not eliminated, Nevada could expect to lose around 3,522 jobs.

To see these numbers and to see how other states are impacted by the Federal Highway Trust Fund shortfalls, please visit:
http://www.transportationconstructioncoalition.org/Docs/
Final_HTF_Shortfall_by_State.pdf

Currently, Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Charles Grassley (R-Iowa) have created a proposal to guarantee adequate Highway revenues are available to fulfill the commitments made in SAFETEA-LU.

For more information on the proposal to close the shortfall, please visit:
http://www.transportationconstructioncoalition.org/

nevada highway users coalition