ROAD OFFICIALS CITE NEED FOR MORE FUNDING

Missouri can't afford to issue $2.25 billion in road bonds without increased funding to retire them, the chairman of the state's highways commission said Friday.

The Highways and Transportation Commission earlier this week approved a list of 58 road projects that will be funded with the first $250 million in bonds.

Lee Kling, commission chairman, said another $500 million in bonds could be issued next year and possibly $500 million the following year. But Kling said he would be reluctant to vote for issuing any more bonds without added revenue to pay them off.

Kling and Missouri Department of Transportation Director Henry Hungerbeeler touted the agency's road-improvement efforts during a meeting with about 30 county and city officials, regional planners and state lawmakers. The meeting was held Friday at MoDOT's district office in Sikeston.

"If we don't get additional funds, we'll have to stop using bond money," he said.

Kling urged lawmakers to work to find more money for the highway department.

Without additional money, Kling said MoDOT might have to dig into the $900 million in fuel tax and other non-bond-issue annual revenue to make the bond payments.

Hungerbeeler said interest costs could end up running $180 million to $200 million a year if the entire amount of bonds were issued.

Both Hungerbeeler and Kling said some type of tax increase might be needed to boost highway funding.

Following the meeting, Kling told reporters that the state "probably needs" a sales tax to help fund transportation projects.

Kling previously headed up Gov. Mel Carnahan's Total Transportation Commission, which had recommended adoption of a 1-cent sales tax. Faced with criticism from lawmakers and the public, the proposal quickly died.

But Kling said the tax issue has to be addressed at some point.

Missouri currently relies largely on fuel-tax revenue for road and bridge improvements. But Kling and Hungerbeeler have stressed the need for a long-range transportation plan that provides funding for all forms of transportation, including light rail.

Hungerbeeler said many states' highway departments receive funding from a sales tax. Illinois and Indiana, for example, receive money from a sales tax on fuel in addition to a flat per-gallon tax like Missouri has.

Each 1-cent of gas tax generates $25 million, he said.

Hungerbeeler said the fuel tax is one of the nation's lowest and can't be adjusted for inflation, let alone accommodate the state's growing needs.

Kling said the highway commission isn't pushing a particular tax plan, but he said commissioners would support efforts to increase funding.

Any funding proposal likely would involve a combination of revenue measures, including taxes and fees, Kling said. Ultimately, any funding measures would be submitted to voters for approval, he said.

If MoDOT does a good job of completing road and bridge projects currently on the construction schedule, voters likely will be more supportive of any future funding measure for highways, Kling said.

But state Rep. Peter Myers, R-Sikeston, expressed concern about the urban-rural split of projects receiving the first block of bond money. Myers said 56 percent of the $225 million is earmarked for projects in St. Louis and Kansas City. With St. Charles and Jefferson County projects added to the total, urban areas of the state will receive 61 percent of the money, he said.

But Hungerbeeler argued that some outlying parts of the St. Louis and Kansas City areas are rural and shouldn't be counted as part of the urban share.

Kling said the highway commission plans to make every effort to evenly divide the money being spent in urban and rural areas of the state. But he said the division won't be perfect from anyone's perspective.

"We are going to try to make it as fair and square as we can, and I promise you it won't be," he said.

Rep. Marilyn Williams, D-Dudley, said lawmakers remain skeptical about whether MoDOT will live up to its promises regarding road projects.