States appear anxious to raise gas tax

Jan. 20, 2009

During the keynote session of the 54th Annual Meeting of the National Asphalt Pavement Association in San Diego, the calls for raising the federal gas tax were loud. Former U.S. Sen. Trent Lott (R-Miss.), Pete Rahn, director of the Missouri Department of Transportation, and Steve Sandherr, CEO of the Associated General Contractors of America, all pushed for the action in front of hundreds of attendees.

During the keynote session of the 54th Annual Meeting of the National Asphalt Pavement Association in San Diego, the calls for raising the federal gas tax were loud. Former U.S. Sen. Trent Lott (R-Miss.), Pete Rahn, director of the Missouri Department of Transportation, and Steve Sandherr, CEO of the Associated General Contractors of America, all pushed for the action in front of hundreds of attendees.

Those at the state level, however, appear to be one step ahead of those on Capitol Hill. Massachusetts Gov. Deval Patrick announced recently that raising the state gas tax could be a serious alternative to increasing tolls on the Massachusetts Turnpike and Boston Harbor tunnels. Patrick said any increase in the fuel tax should be high enough to avoid another round of toll hikes and future toll increases. A transportation panel in Ohio concluded that the state must increase its gas tax or face a serious crisis with its road and bridge network. The panel recommended a 13-cents-per-gallon hike, which would generate another $800 million a year to be spent solely on transportation projects. Idaho Gov. Butch Otter is asking for a 40% increase over the next five years, and bills have been introduced in New Hampshire and Illinois to help boost state gas taxes.

Back in San Diego, Lott, Rahn and Sandherr addressed the specifics of the economic stimulus bill which is currently being worked in Congress. The road and bridge industry is expected to receive at least $30 billion, and jobs must be let within 120 days.

“The good news is that it is $30 billion, the bad news is it is just $30 billion,” said Rahn. The MoDOT leader said the reason why there is not more stimulus money dedicated to the industry is because the feeling is contractors would not be able to mobilize quick enough to justify the increase.

During the panel’s Q&A, one attendee assured all three that if the money is there the contractors will respond.

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