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Three States Look at Highway Funding
March 25, 2008

Several states in Mountain America have already addressed – or failed to address – their highway funding needs this year. The New Mexico Legislature, in an all-too-typical move, decided the issue was too complex to address properly in this year’s session and put it off until next year, leaving the situation to worsen in the meantime.

            The Utah Legislature wrapped up its 2008 session in early March, approving a ½-cent sales tax increase, with the estimated $22 million in annual revenue to be used to address “choke points” in the state highway system. Plans were finalized for spending $100 million toward the $1.85-billion reconstruction of Interstate 15 in Utah County, south of Salt Lake City. Bonds to finance the big project are supposed to be authorized by next year’s legislature, but Republican leaders in the House warn that taxes may have to be raised to help pay for highway and water projects.

            In Wyoming, where the legislature also adjourned in early March, another one-time infusion – $190 million this time – will result in a flurry of additional construction projects around the state, just as last year’s $95-million appropriation did. More than 40 projects are in the pipeline, with some $100 million in work scheduled for this calendar year and $90 million more during the first half of next year. Wyoming is in an unusual position among Mountain America states, thanks to its vast deposits of coal, oil and natural gas. So, flush with mineral revenues, the legislature for the past several years has boosted highway funding with steadily increasing one-time earmarks, beginning with $11 million in 2005, $75 million in 2006, $95 million last year, and now $190 million. As a result of the added money, “I think the citizens will really see an improvement to some of those roads that are being hit with high traffic impacts,” said Del McOmie, chief engineer of the Wyoming Department of Transportation.

            As long as the mineral revenues are there and the legislature remains amenable, these year-by-year earmarks may keep Wyoming’s highway improvement program afloat, but they’re certainly not a long-term solution to the problem. Considering that fuel tax increases and other traditional funding sources have slim and no chance of approval right now, it’s probably the best that can be hoped for.

            Next: Arizona and Colorado look for new and different funding sources. Are tolls the answer?

Posted by Hol Wagner on March 25, 2008 | Comments (0)