Iowa Senate approves road finding
Posted: Wednesday, April 16, 2008
DES MOINES (AP) -- The Senate voted Tuesday to increase license and registration fees on most new vehicles in the state -- a plan expected to pour $161.4 million a year into repairing crumbling highways and roads without increasing the state's gasoline tax.
Lawmakers have spent the session negotiating a highway funding package designed to meet a projected $200 million annual shortfall for the state's highway system.
During debate, none questioned the need to allocate more money for highways in the state, but there was a sharp dispute about how to pay for the effort. Republican critics said there was plenty of money in the state's coffers to pay for repairing highways, without increasing fees or taxes.
"We have the money. Revenues are at historic highs," said Sen. Steve Kettering, R-Lake View. "We can prioritize and we can provide funds for our roadways."
The Senate approved the measure on a 35-14 vote, sending it to the House, which is scheduled to follow suit on today.
Democrats argued that since the 1930s highway construction has been financed by a road fund that relies on gasoline taxes and vehicle fees. They accused Republicans of seeking to reverse that, putting highways in competition with other state programs.
"This is nothing more than a political fan dance by Republicans," said Sen. Michael Connolly, D-Dubuque. "It's raw politics."
To ease worries about putting an election-year increase on virtually every vehicle owner in the state, lawmakers crafted a plan to gradually implement the fee increases. The higher fees would begin with the 2010 model year, meaning the higher fees apply only to new vehicles that are purchased.
That significantly slows the flow of money into the state's treasury. In the first year, the state would collect an extra $11.6 million, though within five years that total would grow to $161.4 million.
That's still short of the $200 million transportation officials say is needed, and legislative leaders have predicted they will revisit the issue next year.
Sen. Brad Zaun, R-Urbandale, said most voters aren't aware they are about to be hit with sharp increases in license and registration fees.
"When the general public finds out about this, they are going to be very upset," said Zaun.
Sen. Tom Rielly, D-Oskaloosa, said he was part of a listening tour around the state where lawmakers heard from voters about what they want.
"They are beyond upset," said Rielly. "They want the roads fixed."
The issue erupted last year, when state transportation officials released a study showing the $200 million shortfall. The report came late in the last session and nothing was done. Highway advocates spent the interim lobbying lawmakers and looking for a compromise method of financing the construction effort.
The state's gasoline tax is the main source of funding for highway construction, and Gov. Chet Culver effectively took that option off the table before the session began when he ruled out a tax increase.
Looking for money, lawmakers then turned to license and registration fees as a funding source, and put in place an increase in virtually all of them.
For instance, title fees would increase from the current $10 to $20, while trailer registration fees would increase to $20 or $30 depending on size. Pickup registration fee increases would vary according to size and whether the truck is used in a business.
Pickup registration fees have been at $65 since 1988, largely because they traditionally were used by farmers. The measure approved Tuesday wold increase them to at least $150, and more for those not used in a business.
Roll Call
Here is how are senators voted on the transportation funding bill.
Voting yes
Steve Warnstadt, D-Sioux City; David Johnson, R-Ocheyedan; James Seymour, R-Woodbine; Dave Mulder, R-Sioux Center.
Voting no
Steve Kettering, R-Lake View; Ron Wieck, R-Sioux City.
Lawmakers have spent the session negotiating a highway funding package designed to meet a projected $200 million annual shortfall for the state's highway system.
During debate, none questioned the need to allocate more money for highways in the state, but there was a sharp dispute about how to pay for the effort. Republican critics said there was plenty of money in the state's coffers to pay for repairing highways, without increasing fees or taxes.
"We have the money. Revenues are at historic highs," said Sen. Steve Kettering, R-Lake View. "We can prioritize and we can provide funds for our roadways."
The Senate approved the measure on a 35-14 vote, sending it to the House, which is scheduled to follow suit on today.
Democrats argued that since the 1930s highway construction has been financed by a road fund that relies on gasoline taxes and vehicle fees. They accused Republicans of seeking to reverse that, putting highways in competition with other state programs.
"This is nothing more than a political fan dance by Republicans," said Sen. Michael Connolly, D-Dubuque. "It's raw politics."
To ease worries about putting an election-year increase on virtually every vehicle owner in the state, lawmakers crafted a plan to gradually implement the fee increases. The higher fees would begin with the 2010 model year, meaning the higher fees apply only to new vehicles that are purchased.
That significantly slows the flow of money into the state's treasury. In the first year, the state would collect an extra $11.6 million, though within five years that total would grow to $161.4 million.
That's still short of the $200 million transportation officials say is needed, and legislative leaders have predicted they will revisit the issue next year.
Sen. Brad Zaun, R-Urbandale, said most voters aren't aware they are about to be hit with sharp increases in license and registration fees.
"When the general public finds out about this, they are going to be very upset," said Zaun.
Sen. Tom Rielly, D-Oskaloosa, said he was part of a listening tour around the state where lawmakers heard from voters about what they want.
"They are beyond upset," said Rielly. "They want the roads fixed."
The issue erupted last year, when state transportation officials released a study showing the $200 million shortfall. The report came late in the last session and nothing was done. Highway advocates spent the interim lobbying lawmakers and looking for a compromise method of financing the construction effort.
The state's gasoline tax is the main source of funding for highway construction, and Gov. Chet Culver effectively took that option off the table before the session began when he ruled out a tax increase.
Looking for money, lawmakers then turned to license and registration fees as a funding source, and put in place an increase in virtually all of them.
For instance, title fees would increase from the current $10 to $20, while trailer registration fees would increase to $20 or $30 depending on size. Pickup registration fee increases would vary according to size and whether the truck is used in a business.
Pickup registration fees have been at $65 since 1988, largely because they traditionally were used by farmers. The measure approved Tuesday wold increase them to at least $150, and more for those not used in a business.
Roll Call
Here is how are senators voted on the transportation funding bill.
Voting yes
Steve Warnstadt, D-Sioux City; David Johnson, R-Ocheyedan; James Seymour, R-Woodbine; Dave Mulder, R-Sioux Center.
Voting no
Steve Kettering, R-Lake View; Ron Wieck, R-Sioux City.
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