Posted on 12/11/2006 11:13:51 AM PST by Tolerance Sucks Rocks
Texas' gasoline tax has been stuck at 20 cents per gallon since 1991.
Unfortunately, the cost of building new roads and expanding existing ones is no longer anywhere near the levels of 1991.
Fifteen years of inflation have sharply increased the cost of building new highways, as well as expanding and maintaining existing ones. In terms of purchasing power, the 20-cent gas tax is now worth only about 14 cents when adjusted for inflation.
Meanwhile, Texas' need for more roads is greatly expanding because of the population explosion that has occurred over the past 15 years and is expected to continue well into the future.
The Legislature, in its upcoming biennial session beginning Jan. 9, needs to address this sobering reality by substantially increasing the gas tax.
The long-overdue tax hike is vital to addressing crucial transportation needs, especially in Dallas-Fort Worth and other increasingly traffic-choked urban areas; to help offset the ravages of years of inflation; and to avoid an excessive reliance on toll roads.
Don't get us wrong -- toll roads have their place. We support, for example, the concept of using tolls to help finance the Southwest Parkway and the proposed Trans-Texas Corridor. But Texans already are signaling their concerns about a potentially excessive reliance on tolls to pay for major new roads and the expansion of existing ones.
An authoritative report, prepared by expert transportation consultants at the request of the Governor's Business Council, recommends that the state gas tax be increased substantially to offset the impact of inflation on both it and the federal gasoline tax, which has stood at 18.4 cents a gallon since 1993.
The report suggests that the state gas tax could be raised by 8 cents, to 28 cents, and then adjusted annually for inflation, based on increases in highway construction costs.
The tax would need to be increased by 31 cents, to 51 cents, if no annual adjustments for inflation were made.
The study was done by a consulting team that included David Ellis and Tim Lomax of the Texas Transportation Institute at Texas A&M University and consultants Alan Pisarski, Wendell Cox and Jennifer McEwan.
Ideally, Congress also should consider boosting the federal gas tax to compensate for its value being eroded by 13 years of inflation. The more the federal gas tax is increased, the less the state gas tax might have to be raised.
If neither tax is raised, the state will have to rely even more heavily on toll roads. Some major urban projects could be delayed longer, making traffic congestion even worse and increasing the eventual construction costs.
There's an added, less obvious benefit of raising the state gasoline tax: One-fourth of the revenues from it go to public education.
A higher gas tax therefore would support both an improved transportation infrastructure and a stronger education system -- two of the most vital components of ensuring a strong future for Texas.
Texas House Speaker Tom Craddick, a staunchly conservative Republican from Midland, showed political courage and foresight last year in expressing support for indexing the gas tax to inflation. Other leaders should quickly step forward on this issue to help ensure that adequate funding is available to avert the misery of growing gridlock.
IN THE KNOW
To read the report
Go to www.texasgbc.org/reports.htm and click on this link: Shaping the Competitive Advantage of Texas Metropolitan Regions: The role of Transportation, Housing & Aesthetics
Trans-Texas Corridor PING!
(Somewhat off-topic)
PING!
Texas' Roadways -- Texas' Future (http://www.texasgbc.org/reports2.htm)
No new taxes-
Rick, I vote, remember what happened in Congress. It don't pay to be a RINO.
Rick Perry is advocating tollways, where only the users pay, instead of a tax increase.
This article and the anti-toll road groups who spam here are advocating a huge increase in the gas TAX, where everyone pays.
Rick Perry's position is the no new taxes position, the only people who would pay for the tollroads would be those who CHOSE to use them.
Seems oblivious to the fact that the population explosion would drive increased tax revenues.
True, but the price of steel, concrete, etc. are growing even than the population/revenues. Indexing gas taxes to the inflation will help, but not much since construction costs are rising faster than inflation.
I say keep the gas tax where it is, use tolls to finance new highways and where possible have developers build local streets.
This would be overtaken by all those new people adding to wear and tear on the roads...
Therefore, it is better in index the gas tax to the hikes in construction costs...
Let's fiddle with the gas tax numbers.
Currently at 20 cents with 5 cents to schools. Raise by 8 cents with 2 cents going to schools. Highways net 21 cents. Schools net 7 cents.
So, if the 5 of 20 cents currently going to schools were restored to highways, the gas tax would only need to be raised by 1 cent and then indexed. The legislature then has to find a way to replace the 5 cents/gallon going to schools.
As for the fed gax tax, leave it alone since Texas gets less than it pays in.
More Texas taxes? Maybe Austin should just vote to reverse the "e" and the "a" in the State's name.
Yeah, that's what they said in Oklahoma 50 years ago when they started building toll roads.
As a born and bred Okie, I'm glad Texas will start building toll roads. It will flatten the Texas economy down to the growth rate experienced by Oklahoma.
Maybe Texas can lower it's economic performace to match that of another large tract of real estate with lots of toll roads. France.
I'll stay here in Arizona, where we successfully shouted down calls for toll roads about 5 years ago, and instead continue to rapidly build freeways and our economy.
My house is *still* going up in value, despite its gain of 25% last year, and the current "bubble". How you texicans doing?
BTTT
So you now want to raise the gas TAX instead of toll financing?
The article is advocating raising the gas tax instead of using tolls to fund some roads.
The strongest state economy in the nation for several years now, even stronger than Texas, was Florida. A state crisscrossed with toll roads.
Nazi's wore pants. So if you wear pants, does that make you a Nazi (using your silly logic)?
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