State Funding of Transportation

Tom Howells

Wisconsin Motor Carriers Association

History of Indexing

• Agreed with Indexing for Years

• Raids from the Fund

• Advocated for Repeal

• Rethinking our Position

Funding Assumptions

• Integrity of Fund is key

• Trucking needs good roads & bridges

• Willing to pay our fair share

• Fuel tax revenues have not kept pace

• Truck user fees high in Wisconsin

• Opposition to Tolls

Evaluating Funding Alternatives

• Cutting expenses & improve efficiency - not just raising additional revenue

• Utilizing “transportation user fees” only for transportation programs.

• Evaluate the fee alternatives based on:

• Collected on a “pay as you go” basis;• Equitable (measures actual use of the system);• Assurances that the funds would be used for

transportation; • Revenue source is predictable, providing a

consistent flow of revenue;• Avoid unproven revenue sources that places

future transportation revenues in jeopardy.

WMCA Preferences

– Cents per gallon fuel tax– Indexing of motor fuel tax (if revenue stay in

transportation fund)– Registration fees – Third structure taxes such as tolls

Conclusions

• Tolls and third structure taxes are to be avoided

• Industry needs a good infrastructure

• Difficult for legislature to raise taxes

• Fuel taxes (even indexed) might be best possible alternative