Wisconsin continues to debate how to increase funds for transportation (in Wisconsin that translates to build more freeways) as gas tax revenues continue to fall as cars get more fuel efficient or don’t use gasoline at all. Instead the governor continues to put highway construction on the credit card or extends the completion dates for major projects (which increases their costs through inflation and often overlooked, loss of utility and increased travel times for users) to balance the transportation budget.
There have been a number of discussions in the legislature around increasing the gasoline tax, vehicle registration and just recently, converting state freeways into toll roads.
Of course Governor Walker continues to stick to his no tax increase pledge by threatening to veto any gas tax increases if they aren’t balanced by tax cuts in other areas. This brings up a number of points. If gas increases are balanced against other tax cuts, those paying increased gas taxes aren’t necessarily the people getting the new offsetting tax cuts. I can’t imagine that will make drivers very happy.
And second, how is reducing other taxes to balance gas tax increases not essentially the same as using general funds to pay for transportation? And isn’t using general funds for transportation now verboten? I am sure many of you can either correct me on that or support my statement.
So about those toll roads…that is a very very slippery slope. Somebody is going to have to spend the initial capital to build the infrastructure to measure and collect tolls. Where’s that money going to come from? Wisconsin already doesn’t have the funds to fix the roads, build new ones, etc….how can it add tolling facilities? (this all assumes the federal government would permit the conversion of freeways to tollways…not unlikely under the President Trump regime)
But the talk is that private investors would pay for the new infrastructure…and then reap benefits from the tolling. And how many years would it take to implement? If we look at the Zoo interchange, years maybe decades. Hmmmm. Who controls the fees and determines the profit margins when private enterprise controls public utilities?
But if you are going to be ‘Open For Business’, you had better have first rate infrastructure, not just a low tax rate…businesses need to get their employees to work on time, need to get their raw materials to their businesses, and need to get their finished products to market. Subpar streets, roads and highways don’t work for them.
So for the quick and dirty, the current Wisconsin gas tax is 30.9 cents a gallon. Take a quick 5.1 cent increase and gas tax revenue jumps 16.5% and takes a lot of stress off of the transportation budget. Increase it 10.1 cents and it’s an increase of 32.7%. When I first suggested this gas in Milwaukee was around $2.00 a gallon and even now at $2.29, a 5 or 10 cent hike isn’t going to be that discernable.
You want some simple background into the issue, please read Ernst-Ulrich Franzen’s article on the resignation of the Secretary Mark Gottlieb from the Wisconsin Department of Transportation…he apparently got tired of speaking truth to power.