In The News

Budget chairman: Tolling and mileage tax still on table

The chairman of the Senate Budget Committee says Congress should not rule out a mileage tax, tolling or public-private partnerships as funding options for transportation no matter how unpopular they may seem.

Chairman Kent Conrad, D-ND, raised the point during a hearing Wednesday, Feb. 24, on the subject of President Obama’s recent budget request for 2010-11. Conrad highlighted some of the options.

“And these include increasing the gas (fuel) tax; charging for each mile traveled; adding more tolls; continuing general fund transfers, which I strongly oppose; and identifying other funding sources,” Conrad said.

“Now let’s be frank, none of these are popular options. But we have to find a way to close this funding gap. We are going to have to start making tough choices.”

Conrad said it is critical that Congress pass a long-term surface transportation authorization bill as soon as possible.

U.S. Transportation Secretary Ray LaHood, who testified at the hearing, said the administration is not keen on raising fuel taxes. But it is keen on establishing a national infrastructure bank and capitalizing on the momentum of the American Recovery and Reinvestment Act.

“The president has said he doesn’t want to raise gas taxes. And in a very bad economy, it’s not the thing that we should be doing to people who are out of work and who can ill afford to buy a gallon of gasoline,” LaHood told the committee.

LaHood highlighted the $4 billion proposal for a national infrastructure bank to fund projects with national significance, and addressed the issue of tolling and public-private partnerships.

“Tolling is a way to pay for additional capacity where states want to do that, and we need to look at that,” he said. “You can raise a lot of money through the use of tolls. And we’ve talked about the idea of public-private partnerships, where roads are going to be built. There can be private dollars utilized.”

Mike Joyce, director of legislative affairs for the Owner-Operator Independent Drivers Association, said OOIDA is ready for a good debate on funding.

“They’re saying that everything is on the table right now as far as trying to fund transportation programs,” Joyce told Land Line Now on Sirius XM.

OOIDA leadership says now is the time to narrow down the list and decide what stays on the table and what comes off.

OOIDA is against the tolling of existing capacity, but not necessarily against tolls being used on new highways or lanes. Joyce said OOIDA remains strongly opposed to the sale or long-term lease of infrastructure to the private sector.

“PPPs are still out there, and we’re going to fight those and have active debates on them,” he said.

President Obama’s budget request will continue to be the subject of congressional hearings and debate. It calls for $77.6 billion for the U.S. Department of Transportation, an increase of $1.6 billion over 2010 levels.

It contains $500 million in seed money for a new Office of Livable Communities, which has highway groups, including OOIDA and the American Highway Users Alliance, questioning where the money is going to be spent.

The Association and the Alliance say highway money should stay with highways and not be diverted to non-highway uses.

[email protected]

www.LandLineMag.com