Last week, Gov. Bob Holden presented what he called a "long-overdue plan to fix Missouri's transportation system." He said he hoped his proposal would spark legislative debate over what transportation needs should be met and how to pay for them. Many legislators, however, are likely to regard the governor's package as more of the same. The Holden plan borrows parts of several other plans languishing in the legislature.
There is one aspect of the Holden plan that stands out: the huge tax increases needed to raise $620 million.
The governor's proposed tax increases would combine to create one of the largest -- if not the largest -- hits on taxpayers in Missouri history. Add to that his proposed increases in various fees, and you've got a whopping increase in state funding.
Holden' s plan would increase the general state sales tax, the state sales tax on automobiles and the state fuel tax. In addition, the 6 cents of state fuel tax that is due to expire in 2008 -- this is what was supposed to fund the now defunct 15-year highway plan -- would be extended.
One portion of the governor's plan that is plain common sense is to apply all of the revenue from the state fuel tax to transportation needs. For years, a hefty portion -- about $191 million this year -- has been diverted to the Missouri State Highway Patrol and other departments. This money should go to transportation. But, at the same time, a big chunk of Holden's tax increases would go to offset lost revenue to the patrol and those other departments.
Nowhere is any balance offered that would control state spending instead of increasing taxes.
One of the budget twists this year is that other state taxes also may have to be increased, thanks to budget shortfalls created during the administration of the late Gov. Mel Carnahan.
By the time Holden took office in January, the state was projected to be more than $130 million in the red for the current fiscal year. Moreover, the state's total revenue for the next fiscal year was estimated to be $300 million short of anticipated spending needs.
Of course, the state treasurer during the years the current deficits were in the making was Bob Holden, the man currently occupying the governor's office.
What Missouri needs is a business approach to highways and other transportation needs. Instead of planning projects based on this tax increase or that boost in fees, someone -- highway department, legislature, governor -- needs to decide what those needs really are and how much they cost. Once that work is done, the next question would be to determine what the state can afford and what taxpayers are willing to pay for.
Meanwhile, we are left with fairly incoherent plans.
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