Missouri highway chief says tax money declining

Wednesday, November 19, 2008

AARON EISENHAUER ~ aeisenhauer@semissourian.com Crews widen Highway 72/34 outside of Jackson on Thursday, July 24, 2008. [Click to enlarge]

JEFFERSON CITY, Mo. (AP) — Missouri's highway funding has hit a pothole.

The director of the Missouri Department of Transportation says revenues are down almost 5 percent through the first four months of the fiscal year. That amounts to a more than $18 million decline.

If that trend continues, director Pete Rahn says there could be a $73 million shortfall this fiscal year in revenues from fuel taxes, motor vehicle sales taxes and license fees.

Of particular concern are slow auto sales, which have led to an 11 percent decline in vehicle sales tax revenues. Rahn says the department is dependent upon motor vehicle sales tax revenues to repay the bonds that have financed the most recent round of road improvements.