OLIVER ON TRANSIT ASSISTANCE: `IT IS NOT A LOAN'

The Missouri Highway and Transportation Commission has agreed to assist the Bi-State Development Agency in St. Louis in finding a way to come up with $10 million in operating funds for its light rail and bus systems.

Bi-State has warned that it has a deficit and could shut down mass transit operations in metropolitan St. Louis next spring without additional money. Efforts during the last legislative session to approve a method of providing funding for transit were defeated.

At its meeting last week, the six-member highway commission discussed ways of helping Bi-State through the shortfall. But reports the highway commission has loaned money to the agency are not correct, according to John Oliver of Cape Girardeau, who is vice chairman of the commission.

Oliver pointed out that the highway commission cannot loan money for non-highway purposes.

"We don't want to loan money to Bi-State, in the sense that we don't want to create legal entanglements," said Oliver. "We fight real hard to maintain the integrity of motor fuel taxes as a highway construction source and feel that is our constitutional duty. We will not permit anything to be done that infringes on that."

Oliver explained that the commission was talking about funds under the new federal highway bill for congestion management and control, known as CMAC. Right now, he noted there are no projects to fund with CMAC money.

"These funds are at least theoretically available for transit. There is some question about the extent to which they can be used for operations, but apparently it can be done," said Oliver. "But the details need to be worked out. We had agreed earlier to bless the release of CMAC funds for MetroLink to use.

"It turns out that's not quite so easy, and to get approval, it would also appear that we have to figure out a way to replenish those funds, and that's what we're trying to figure out now."

Based on research by highway department staff, Oliver said if the CMAC funds are used for operational expenses, a method has to be devised to replace them.

Chris Sifford, an aide to Gov. Mel Carnahan, said the governor fully supports the effort to help MetroLink with its operating shortfall.

"The governor worked with the highway commission quite a bit to convince them this is a way we needed to go," said Sifford, who predicted an effort will be made in the next legislative session to generate more revenue for mass transit.

"The legislature will likely address the mass transit issue statewide next year, and solving the MetroLink problem will be a part of that effort," Sifford said.

Oliver stressed the highway commission has not yet agreed on any method for generating money for mass transit, though a committee is reviewing the options.

"Our commitment so far to Bi-State is to try and figure out a way to lawfully allow them to use these CMAC money for operational expenses," said Oliver. "Everybody has to keep in mind this is a shortfall deal and ultimately there has to be a legislative solution. There has to be an income flow to fund transit in the state."

One idea being floated to generate mass transit money is to lift the sales tax exemption on gasoline. Oliver said he is personally cool to that idea.

Said Oliver: "I think we have to find a way to fund transit, but I don't believe that's the way. Whatever it is, I believe the governor has indicated that any of these proposals ought to go to the people, and I certainly support the governor's position in that regard. In part, mass transit is also a social program; maybe it is a more of a social program than anything else. It's all the peoples' money and all the people ought to vote on it."

Oliver said one way he believes mass transit could be funded is by shifting from general revenue the portion of sales taxes for motor vehicles that do not now go to the highway department. But Oliver said he is unsure whether that would generate enough money and recognizes there may be a problem finding a way to make up the lost general revenue.

Sifford maintained that his boss "very much supports" the idea of submitting any repeal of the sales tax exemption on gasoline to the voters.

The state now has a ban on using highway money for public transit projects. Oliver said it is possible a state constitutional amendment would be required to change that.