Road funding plan yields cautious legislative response
By Todd Dorman Journal Des Moines Bureau | Posted: Tuesday, April 03, 2007
DES MOINES -- Key lawmakers said Monday they are proceeding with caution on a new, ambitious proposal to patch Iowa's shrinking road construction fund.
The plan would end a registration fee break for pickup truck owners, raise fees paid for older vehicles, boost the cost of a driver's license and hike the tax on diesel fuel. It would raise $140 million to $160 million for the Road Use Tax Fund, which pays for road construction projects.
The plan does not include a gas tax increase.
"I think everybody understands how critical the road system is," said Rep. David Tjepkes, R-Gowrie, who is floating the plan with Rep. Geri Huser, D-Altoona.
The proposal is a response to repeated pleas from transportation officials for more money to build and fix highways.
But the measure still faces plenty of political potholes.
One issue is time. Just a month remains in the legislative session -- a home stretch usually better suited to scrapping ideas than unveiling new ones.
"Whether we reach a resolution this year or not remains to be seen," said Senate Majority Leader Mike Gronstal, D-Council Bluffs.
He is not eager to embrace the new House funding plan.
"My first gut instinct is, wow, that's a little bit too high of a dependence on registration fees," Gronstal said. "I'm a little bit nervous about that."
Senate Republicans took shots at the idea of raising registration fees paid by the owners of older cars and trucks.
Under current law, the owners of vehicles nine years old or older manufactured in the 1994 model year and after pay $35 annually. Fees for some vehicles older than the 1994 model year are less than $20.
The House plan would phase in an increase over time that would raise the minimum charge for all vehicles to $125.
"We don't think that's a good idea," said Senate Minority Leader Mary Lundby, R-Marion. "Low-income Iowans are the ones that are the most likely to drive a vehicle that's in that $15-$20 range."
Rep. Jamie Van Fossen, R-Davenport, said he opposes fee increases and the proposed diesel tax hike. The plan would increase the current 22.5-cent tax on diesel by a penny in each of the next two years.
Van Fossen favors changing the formula used to distribute road dollars to direct more dollars to urban highways. But he said he doubts lawmakers will find consensus in the closing weeks of the session.
"I think this might be a two-year effort," Van Fossen said.
Tjepkes said the ball is now in the court of legislative leaders who will either shelve the issue or start lining up votes to get a package passed this year.
"In the next few days there's going to be a lot of discussion," Tjepkes said.
Todd Dorman can be reached at (515) 243-0138 or at todd.dorman@lee.net
The plan would end a registration fee break for pickup truck owners, raise fees paid for older vehicles, boost the cost of a driver's license and hike the tax on diesel fuel. It would raise $140 million to $160 million for the Road Use Tax Fund, which pays for road construction projects.
The plan does not include a gas tax increase.
"I think everybody understands how critical the road system is," said Rep. David Tjepkes, R-Gowrie, who is floating the plan with Rep. Geri Huser, D-Altoona.
The proposal is a response to repeated pleas from transportation officials for more money to build and fix highways.
But the measure still faces plenty of political potholes.
One issue is time. Just a month remains in the legislative session -- a home stretch usually better suited to scrapping ideas than unveiling new ones.
"Whether we reach a resolution this year or not remains to be seen," said Senate Majority Leader Mike Gronstal, D-Council Bluffs.
He is not eager to embrace the new House funding plan.
"My first gut instinct is, wow, that's a little bit too high of a dependence on registration fees," Gronstal said. "I'm a little bit nervous about that."
Senate Republicans took shots at the idea of raising registration fees paid by the owners of older cars and trucks.
Under current law, the owners of vehicles nine years old or older manufactured in the 1994 model year and after pay $35 annually. Fees for some vehicles older than the 1994 model year are less than $20.
The House plan would phase in an increase over time that would raise the minimum charge for all vehicles to $125.
"We don't think that's a good idea," said Senate Minority Leader Mary Lundby, R-Marion. "Low-income Iowans are the ones that are the most likely to drive a vehicle that's in that $15-$20 range."
Rep. Jamie Van Fossen, R-Davenport, said he opposes fee increases and the proposed diesel tax hike. The plan would increase the current 22.5-cent tax on diesel by a penny in each of the next two years.
Van Fossen favors changing the formula used to distribute road dollars to direct more dollars to urban highways. But he said he doubts lawmakers will find consensus in the closing weeks of the session.
"I think this might be a two-year effort," Van Fossen said.
Tjepkes said the ball is now in the court of legislative leaders who will either shelve the issue or start lining up votes to get a package passed this year.
"In the next few days there's going to be a lot of discussion," Tjepkes said.
Todd Dorman can be reached at (515) 243-0138 or at todd.dorman@lee.net
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