Idaho House sets funds for roads
By JOHN MILLER
Associated Press
Friday, April 24, 2009 12:51 PM PDT
BOISE — House Republican leaders who have rejected six proposals to boost Idaho’s gas tax floated a plan Thursday to add money for road maintenance from Idaho’s general fund, but only after economic growth resumes.
The idea found little immediate favor in the Senate, and Democrats panned it outright, saying it’s just an anti-government ploy to starve suffering general fund agencies once the current recession abates.
Still, House Majority Caucus Leader Ken Roberts, R-Donnelly, said the proposal envisions using resurgent state revenue for highways ‘‘instead of taking that revenue growth and putting it into re-growing state government.’’
Idaho now uses federal and dedicated state gas tax money and fees for its roads.
Rep. Scott Bedke, R-Oakley, the assistant House majority leader, noted that other states give general fund money to transportation projects. For instance, Oregon gave $4.5 million from the 2007-2009 period from its general fund to rail programs, according to that state’s budget; Utah in 2008 passed a 0.05 percent increase in its sales tax and dedicated proceeds to transportation.
‘‘Other states are very successful in their approaches of having a blend,’’ Bedke said. ‘‘If all the economy benefits from roads, then all the economy ought to participate.’’
Gov. C.L. ‘‘Butch’’ Otter has vetoed 35 bills already this session because the House has repeatedly rejected his biggest proposal of the 2009 Legislature: Raising more money to help fill what he calls a projected $240 million annual road maintenance and repair backlog.
His aides declined to characterize Otter’s stance on the new proposal.
Earlier in the day, however, Otter gave no sign he’s giving up his quest for as much as $80 million in additional revenue by 2011, including through a gas tax hike.
Asked how to handle a House that says ‘‘No’’ again and again, Otter responded, ‘‘You keep trying.’’
The latest House proposal would use money from the general fund for roads only after covering Idaho’s other statutory requirements, including fulfilling a pledge to begin cutting business equipment taxes once the state’s tax revenue grows 5 percent from 2008 levels.
The idea emerged as the House began considering three separate bills aimed at raising some $30 million in new roads money.
They include abolishing a roughly $18 million tax exemption on ethanol, charging $13.1 million more in Idaho Transportation Department fees, including for driver’s licenses; and revamping vehicle registrations to raise an extra $3.1 million.
The ethanol measure already passed the House, but was killed earlier this week after the Senate amended it to include a two-year, 6-cent-per-gallon gas tax increase, from 25 cents per gallon now.
Asked about the House plan to start using general fund revenue for Idaho roads, Senate President Pro Tem Bob Geddes said he appreciates the House’s ‘‘creative thinking,’’ but figures the idea is likely dead on arrival.
The biggest objection among senators, Geddes said, would likely be concern that other state general fund agencies that have been hit by the economic downturn would then have to compete with roads for a share of the new revenue generated by the recovery, once it comes.
Idaho’s fiscal year 2010 budget, starting July 1, is expected to total $2.54 billion — $420 million less than the original 2009 appropriation.
The Senate has so far sided with Otter in his push for more transportation funding from an increased gas tax.
House Democrats immediately rejected the GOP leadership proposal to use the general fund for roads maintenance, saying it was tantamount to ‘‘a roads entitlement.’’ Agencies including prisons, public schools and colleges and universities will all have budgets that need to be restored to appropriate levels following cuts that began in 2009 and are continuing into 2010, despite $1.2 billion in federal stimulus money.
‘‘That’s not acceptable,’’ said Rep. Wendy Jaquet, D-Ketchum. ‘‘The general fund is getting hammered already.’’
