CHICAGO - The Wisconsin Department of Transportation proposed a series of tax and fee hikes to raise $750 million over the next two years to address a short-and long term funding gap.
The department outlined its
Transportation Secretary Mark Gottlieb called the plan "ambitious and far reaching" and needed to "provide a balanced and logical framework for meeting our long term needs with transparent and effective stewardship of limited resources."
The department proposed increases in the state's diesel fuel and gasoline tax. It would levy a higher registration fee on hybrid and electric vehicles, and impose new fees on new vehicle purchases while raising general fund transfers to the transportation fund. The state would create a $10 per carload user fee for railroads using state-owned rail lines, and increase fees for oversize and overweight permits under the plan.
The blueprint calls for the state to restructure and raise the gasoline tax for motor fuel by including a fixed-rate per gallon tax and variable tax based on a percentage applied to annual average wholesale price converted to a cents-per-gallon charge for collection purposes. The increase would average five cents per gallon on regular gasoline and 10 cents on diesel.
The plan seeks the transfer of $574 million from the general fund and calls for a continuing appropriation from the general fund to improve transit availability and ridership with $4 million earmarked in 2016 and $16 million in fiscal 2017.
The proposals stem from a charge Walker gave Gottlieb earlier this year to find a long-term solution for ensuring that Wisconsin's transportation system contributes to economic development and has sustainable funding.
A special task force in 2013 recommended some of the revenue generating ideas now being incorporated in the department's budget proposal.
With little expectation of greater federal aid, the department faces a more than $600 million gap in funding. The department also warned it's grappling with some big looming bills, including $791 million over the biennium for the Southeastern Wisconsin Megaprojects Program, $40 million to fund an increase in the Local Transportation Assistance program; $57.7 million for additional highway maintenance program funding; and $57.2 million for additional traffic operations program funding.
Democrats shot down many of the ideas and Republicans said they need time to examine the proposals with most agreeing that more funding is needed. Walker has generally been opposed to tax hikes and has used state budget surpluses to cut taxes.
The state has about $2 billion of outstanding transportation revenue bonds that carry ratings ranging from double-A to triple-A. The state adheres to a 2.5 times coverage ratio with vehicle registration fees accounting for 83% of the pledged revenues for debt service in fiscal 2013. Other vehicle registration-related fees pledged to the bonds include title transaction fees, counter service fees, and personalized license plate issuance and renewal fees.
Voters recently approved a state constitutional amendment banning the diversion of transportation fund revenues. It came in reaction to raids on the fund by past administrations and legislatures that siphoned off more than $1 billion for other purposes.
