Transportation amendment goes to voters on Tuesday

JEFFERSON CITY, Mo. -- Supporters of Amendment 3 contend it would "end the diversion" of tax money from the Missouri Department of Transportation. Opponents argue it would actually begin bigger diversion of revenue from education, health care and other programs for MoDOT's benefit.

The measure was placed on the Nov. 2 ballot via initiative petition by the Committee to Improve Missouri Roads and Bridges, a coalition of highway contractors, labor unions and business groups. The committee has raised $1.9 million for the ratification campaign.

Its efforts include television commercials that tout the measure as a way to improve the state's transportation infrastructure without a tax increase.

Speaking earlier this month to members of the Missouri Chamber of Commerce and Industry, a group that endorses the proposal, new MoDOT director Pete Rahn said the issue is simple.

"If Amendment 3 passes, our roads get better. If Amendment 3 fails, our roads get worse," Rahn said.

The aptly named opposition group No on Amendment 3 doesn't dispute the boon the proposal would provide transportation but says other areas of the state budget would pay the price.

The opponents claim supporters have run a misleading campaign. The foes note that the bulk of the revenue Amendment 3 would provide for MoDOT comes from a source that has always been used to pay for general state services -- not one that was intended for transportation and somehow had been co-opted for other purposes.

Jennifer Hill, a spokeswoman for the group, said permanently allocating that revenue for MoDOT amounts to poor financial planning that leaves less flexibility in the appropriations process.

"We believe it is not sound fiscal policy to amend the constitution to earmark taxes to certain agencies," Hill said. "As needs change, funds aren't able to be reallocated."

Education and taxpayer advocacy groups are among the main opponents of the measure. Their effort to defeat it, however, is strictly grassroots. No on Amendment 3 reported raising a mere $5,700 for its campaign.

Amendment 3

A "yes" vote is to constitutionally earmark for transportation the portion of proceeds from state sales taxes on motor vehicles that currently goes into the general fund and restrict the so-called diversion of money from the road fund to agencies other than MoDOT.

As the amendment would essentially shift around existing money, it would have no net effect on state revenue collection.

Money provided by redirecting the sales tax proceeds would go to pay off bonds issued by MoDOT to finance new highway construction. Supporters estimate the vehicle sales tax, once fully removed from general revenue after four years, would provide an estimated $130 million a year for transportation. Opponents put the figure at $187 million.

Lawmakers would be restricted from siphoning from the road fund, which is supported by fuel taxes and licensing fees, to help support other state agencies. The Missouri State Highway Patrol and Department of Revenue, which together account for 90.6 percent of this fiscal year's diversion of $207.9 million, would still receive money from the road fund, as they are currently entitled by the constitution. However, the revenue department's share would be capped at 3 percent of annual collections of highway user fees.

The diversion restrictions would free up about $30 million annually, with the money being available for general transportation needs.

Supporters say both the diverted funds and motor vehicle sales tax revenue are highway user fees that logically should be earmarked for transportation.

Opponents say that after years of core budget cuts, state government as a whole is underfunded and that ratification of Amendment 3 would leave agencies that rely on general revenue with less money to split than would otherwise be the case.

mpowers@semissourian.com

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