HIGHWAY BILL MAY LEAD TO REQUEST FOR STATE GAS TAX HIKE

To take full advantage of a dramatic increase in federal funds contained in a new transportation bill approved by Congress Wednesday, Missouri voters will eventually have to pass an increase in the state gasoline tax.

While most officials were pleased Tuesday that the new bill will increase average federal funds for Missouri from $250 million a year to $433 million annually over the next six years, they all agreed there would not be sufficient state money available to provide required matching funds.

"The sources of revenue currently available to the Highway and Transportation Department would not allow us to take full advantage of the available funds as we understand this program," said John Oliver, a Cape Girardeau attorney who serves on the Missouri Highway and Transportation Commission. "The legislature will have to address this problem eventually."

Chief Highway Engineer Wayne Muri added, "Eventually there will have to be a gas tax increase, but when and how much we won't know until we have a chance to study the bill."

Muri said the highway commission, at its next meeting on Dec. 6, will discuss the bill and future sources of funding. Muri stressed that the state's highway program is directly linked to the federal program. "We are totally dependent on the federal program," said Muri. "We are absolutely captive."

The new highway bill, as the old one did, requires states to pay 20 percent of the costs for new construction and 10 percent of the costs for repairing interstates and major roads.

Walt Wildman, executive director of the Cape Girardeau Regional Commerce and Growth Association and District 10 chairman of the Missouri Transportation Development Council, said the MTD group would be involved in developing a consensus on what kind of gas tax will be needed.

Wildman stressed no decisions could be made until the federal bill was passed. He added that to his knowledge, no decision has been made on whether to ask legislators to send a gas tax plan to voters next year or in 1993.

Cape Girardeau Chamber of Commerce President Bob Hendrix said people don't want to talk about a tax increase right now, but "Missouri will have to come up with some more money for transportation. That's something nobody wants to talk about, but it's out there. If the feds come down with money and we don't have funds to match it, we'll be back in the position of being a donor state again."

He added, "I'm not advocating more taxes, but it's just that Missouri will have to come up with more money somehow. How you do that without taxation, I don't know."

But Hendrix said he is optimistic voters would look favorably toward a gas tax increase because of what they will get in return.

"If we can invest 20 cents and get 80 cents, that's a pretty good investment, particularly when those dollars will be spent in our state for jobs which we desperately need right now."

James T. Seigfried, chairman of Missouri's Federal Transportation Alliance, said Wednesday night in a statement that the new bill is good news for Missouri but still does not provide enough funds to meet the state's entire transportation needs.

Seigfried pointed out that the new federal money is still far short of the $550 million per year average cited by the state highway commission as necessary to complete projects in the "10-year Unfunded Needs Study."

"All the cards are now on the table," said Seigfried. "We need to assess the impact of this significant new federal highway act to Missouri and then get on with developing a non-partisan partnership of political and private leadership to find a long-term solution to the identified transportation crisis in this state."

Oliver stressed there are some very good points in the highway bill and he praised U.S. Rep. Bill Emerson and Sen. Christopher Bond for their efforts. He said the two lawmakers were responsible for Missouri's increased funding.

"Missouri owes those two people for hanging tough on the money," declared Oliver.

He said there are three points in the bill that are good. "First, we can put people back to work; second, there is increased funding to $2.6 billion as opposed to $1.4 billion under the prior plan; and apparently the new bill provides enhanced flexibility in spending decisions.

"One of the problems we had was so much of the money was earmarked for specific things, whether we needed it or not. A good example of that is the white poles up and down I-55, every tenth of a mile. That is an illustration of federal funds earmarked for something we would all agree is not a high priority project," said Oliver.

Initial studies of the highway bill indicate that Missouri will get a return of 96 cents for every dollar in federal gas tax paid, up considerably from the 77 cents under the old bill. Oliver said he is skeptical Missouri's return will be that great.

"The bad thing about the highway bill is that the formula has not been changed. It perpetuates a gross inequity. It is, in fact, now in part a wealth redistribution plan (to mass transit programs) where part of the federal fuel tax dollar that we spend is going to go to subsidize transportation of people from Connecticut - one of the richest suburbs in the world - to downtown New York City."

Oliver said although Missouri receives more money in the new bill, it does not receive all to which it should be entitled. Part of the bill includes spending down the $20 billion being held in the highway trust fund.

"Our share of the money already paid in and being held in the trust fund is $500-600 million and we're not getting a dime of that because the formula didn't change," said Oliver.