NEW PLAN FOR ROAD FUNDING DISPUTED; GOP LAWMAKERS OPOSE PROPOSAL

A proposed package of tax and fee increases to fund transportation projects in Missouri won't get on the road this year, area lawmakers predicted Tuesday.

The lawmakers -- all Republicans -- gave a thumbs down to a funding plan unveiled Monday in Jefferson City by an ad hoc transportation committee.

The plan would first have to pass the Legislature and then be approved by voters before it would take effect.

"This plan is dead on arrival as far as I am concerned," said state Sen. Peter Kinder, R-Cape Girardeau. "It is an astounding package of tax increases."

It is estimated the plan would generate $693 million a year for transportation projects, including about $90 million for mass transit projects.

The state would get over $608 million in added annual revenue for highway and other transportation projects. The rest of the funding would go to cities and counties.

As drafted, the funding package would be permanent unless the Legislature voted between Jan. 15 and Feb. 15 of 2008 to discontinue the tax and fee hikes.

The 16-member ad hoc committee presented the plan to the Legislature's Joint Committee on Transportation Oversight.

The plan would:

-- Increase the state sales tax by a half cent, raising about $333 million a year. The state sales tax currently is at 4.225 percent.

-- Increase the state gasoline tax by 5 cents a gallon, generating about $189 million a year. With the increase, the tax would stand at 22 cents a gallon. The state would receive $132 million annually from the tax increase. Cities and counties combined would receive about $57 million a year.

-- Use all of the motor vehicle sales tax revenue to finance transportation projects. Currently, only half of that revenue goes for transportation funding. The rest is budgeted for general state services. The change would add $109 million to transportation funding.

-- Increase registration and license fees for autos and commercial vehicles, generating $62 million. The plan would increase registration and license fees by $25 for commercial vehicles and $10 for autos.

The package was drafted by a committee representing highway industry, business and civic organizations.

Mike Right of the AAA Auto Club of Missouri served on the ad hoc group. Right said the sales tax measure was proposed partly to provide funding for mass transit projects, which can't be funded with gas tax money.

Rep. Peter Myers, R-Sikeston, opposes the tax plan. "Tax, tax tax. It doesn't make sense," he said.

Myers predicted outstate lawmakers would oppose the idea. Myers said the Missouri Department of Transportation has little credibility with lawmakers or the public.

Three months ago the Missouri Highway and Transportation Commission scrapped the 15-year plan for road and bridge improvements. The commission said the plan fell far short of the funding needed to finance all the projects.

In 1992, the Legislature approved a phased-in, 6-cent hike in the fuel tax to fund the 15-year plan.

Myers questioned MoDOT's calculations, suggesting the state could afford to proceed with many of the projects in the 15-year plan.

Myers said he doesn't want to see money shifted from rural to urban projects. Like other Bootheel lawmakers, he wants U.S. 60 widened to four lanes across southern Missouri.

The Sikeston lawmaker opposes leaving it up to the Legislature to terminate the tax. He would prefer an automatic sunset clause.

Rep. Lanie Black, R-Charleston, suggested the state look to reallocate existing tax revenue before seeking to hike taxes.

"Revenues are up a whole lot. Rather than continuing to grow social programs and things of that nature, maybe we ought to redistribute some of this ever-increasing revenue to highways," said Black.

Black doesn't like the idea of leaving it up to the Legislature to terminate the tax package at a future date.

"Historically, politicians have been very reluctant to remove taxes that have been passed," he said. "We tend to dream up more and better ways to spend the money."

Rep. Mary Kasten, R-Cape Girardeau, criticized the new funding plan. "I think this is probably too much and too soon," she said. "I don't think the people of Missouri will be very amiable to raising more taxes."

Rep. Patrick Naeger, R-Perryville, doubts the tax plan can garner enough legislative support to get it on an election ballot this year.

Naeger said he and other lawmakers first want to see if MoDOT can be more accountable with its current five-year plan for road and bridge improvements.

Naeger is disappointed that the state has chosen to abandon the 15-year plan of road and bridge projects. "There is no commitment to the 15-year plan in there. They don't address the funding split," he said.

Rep. David Schwab, R-Jackson, said the state needs to commit to completing the projects in the 15-year plan as promised.

The new funding plan still is far from complete. It contains no list of transportation projects. MoDOT officials are expected to compile a list for the Legislature's transportation committee, perhaps by early March.

The plan already has opposition from the Missouri Farm Bureau.

Estil Fretwell, a top official of the Farm Bureau, served on the ad hoc committee. Fretwell said his organization opposes submitting any tax plan to the voters while MoDOT continues to be plagued by credibility problems over the decision to scrap the 15-year plan.