February 26, 2015 Next week marks the first funnel of the 2015 legislative session. A bill must be approved in a standing committee in either the House or the Senate to remain alive as a stand-alone bill for the session. Most bills that have not received committee approval by next Friday will be dead for the session but some we will see again as amendments on bills that have survived. Most of the attention this week focused on the fuel tax bill. Fuel taxes in Iowa have been an issue for longer than I have been in the Legislature. When I first came to the Legislature in 2007 I was assigned to the Transportation Committee and have been a member ever since. I was immediately involved in a bill called TIME 21. TIME 21 was initially a comprehensive bill that included all aspects of road funding in Iowa, fuel taxes, registration fees, and sales tax on vehicle purchases. After much negotiating throughout 2007 and 2008 the final TIME 21 legislation contained only an increase in registration fees and some efficiency measures in the Department of Transportation. TIME 21 is currently raising about $190 million a year in revenue for the DOT. Studies conducted since 2010 have consistently indicated that Iowa’s transportation system was deferring critical maintenance at the rate of $215 million per year. Cost saving measures included closing several DOT facilities around the state along with other efficiency measures but the DOT was still short of funds for critical repairs and maintenance; thus the continued discussion of the fuel tax. After intensive discussion on the needs of our transportation infrastructure over the last three years the conversation consistently returned to and centered on a need for an increase in the fuel tax. Over the last six weeks, intensive negotiations among the House Transportation Committee, the Senate Transportation Committee and the Governor’s office resulted in a bill that would meet the approval of all four legislative caucuses and the Governor. The bill raises fuel taxes ten cents per gallon across the board. This increase will raise between $210 and 230 million per year, 20% of which will be paid by the out of state drivers who use our roads. I would like to address a couple of the more prominent arguments against the increase in the fuel tax. The most prevalent argument was that some of this money was going to be spent on bike trails and walking trails. While the DOT does take part in the construction of trails it is illegal for them to use monies from the road use tax fund for these purposes. Those trail funds come from federal funds and are mandated to those purposes. This fuel tax increase will be used exclusively for the maintenance, repair and construction of our roads. Some have contended that all the money will be spent in eastern Iowa. The money will be distributed through the current formula; 47.5% to state roads, 32.5% to the counties and 20% to cities, and allotted to the cities and counties according to formulas that have not been disputed in the past.
Some have contended that this was “rammed through” in a couple of weeks. Nothing could be further from the truth as I explained above. This process has extended over the last eight years. Many options were studied, most were rejected and the discussion always returned to the fuel tax. With the Governor’s signature the change will take effect on March 1. With this early enactment, additional funds will be available for this construction season. We should all see increased activity in repair and maintenance in the upcoming construction season. As I considered the options I have listened closely to the residents of Buena Vista and Sac Counties. As I have talked about this consistently in my newsletters and forums I have indicated that I would support increased funding for roads. In all of my conversations, either back in the district, or with folks here in the Capitol, the sentiment has been running five to one in favor of an increase in the fuel tax. We all want good roads, and while we may complain about the delays and inconvenience of road repairs the result will be better and safer roads in the future.
