NASHVILLE, Tenn. (AP) - The introduction of several rival transportation funding proposals could end up sinking efforts to tackle a $10 billion backlog of road and bridge projects in Tennessee, legislators warned Thursday.
The counterproposals are being offered by opponents of a gas tax hike, which is a key to the plan put forward by Republican Gov. Bill Haslam.
The governor likens gas and diesel taxes to “user fees” that he calls the fairest approach to paying for infrastructure projects because up to half of vehicles on Tennessee roads are from out of state.
“I don’t like the idea somebody that barely drives has money go to subsidize a road for somebody that’s from California driving down I-40,” Haslam said. “That just doesn’t seem fair.”
But several House Republicans, including Majority Leader Glen Casada, have expressed support for a proposal to instead dedicate a portion of sales tax collections to road funding. Meanwhile, Americans for Prosperity, the advocacy group founded by billionaire brothers Charles and David Koch, wants to earmark $200 million from the general fund each year for the next decade to pay for infrastructure projects.
Andrew Ogles, director of the group’s state chapter, argued during a news conference Thursday that he doesn’t think there is any urgent reason to act, especially when the state is flush with a more than $1 billion surplus, and is projecting revenue growth of nearly the same amount.
“When you have a billion-dollar surplus in recurring revenue being paid by hardworking families, you don’t raise taxes,” Ogles said. “That is nonsensical, that is disingenuous, and quite frankly, I would call it theft.”
Democrats compared the GOP response to Haslam’s gas tax proposal to the Republicans’ rejection of the governor’s Medicaid expansion proposal in 2015.
“It’s Groundhog Day, and here we are four days into the session and the supermajority has sabotaged the governor’s key initiative,” said Senate Democratic Caucus Chairman Jeff Yarbro.
Neither rival proposal has gained much support among Republican leaders in the Senate, who worry about what would happen to transportation funding or other budget priorities in less robust budget years.
Senate Speaker McNally said a dedicated source of fuel-tax money for roads is the best method of ensuring steady funding even in an economic downturn, when general-fund collections tend to wane.
“Our economy runs in cycles,” said McNally, R-Oak Ridge. “I’m hopeful with the new president we can extend our run, but nine years is a long time to have growth in the economy.”
McNally said transportation funding has to be addressed before drivers notice the wear and tear of the state’s infrastructure, because it can take between five and 10 years for new projects to be completed.
“Rather than waiting for the crisis to occur, it’s better to plan ahead and make a commitment now,” he said.
Haslam’s proposal would increase the state’s 21.4-cent tax on each gallon of gas by 7 cents and the 18.4-cent tax on diesel by 12 cents. The governor wants to balance the estimated $280 million that would be generated for transportation projects with tax cuts of the same amount in other areas.
Senate Majority Leader Mark Norris said he would hope for the various alternatives to be discussed within the context of a single bill.
“It’s better to work together toward a common end,” said Norris. “If the game is to divide and conquer, then the game is over.”
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