Monday, March 2, 2015
Sunday, March 1, 2015
Washington's Transportation Funding Dilemma
Fix the Gas Tax
What does
this proposal do?
Replace RCW 82.36.025 and raise the gas tax and establish a
price threshold where by the tax rate becomes market adjusted. This will provide tax
relief when market prices are high and increased revenue when the market is low.
This will help stabilize tax revenue even when the market is unstable.
What are
other states doing?
Washington State’s total gas tax is 37.5 and states with
comparable traffic are currently at 49.5. Other states are using a traditional
gas tax.
Why do we
need a market adjusted gas tax?
The public is weary of taxes. Let the market fluctuations on
gasoline work toward everyone’s advantage. Gas price goes up and the gas tax
goes down, gas price goes down and the tax rate goes up. Relief when prices are
high and increased revenue when prices are low.
The public is paying the price for bad roads, 6.5 billion
annually. Washington state commerce suffers when bridges fall down. WSDOT needs
the funds to repair 131 structurally deficient bridges and paint 110 steel
bridges. WSDOT also has to meet the growing ($2.4+ B) backlog of fish passage
barriers.
What
would change?
The jobs would get a boost! A 2007 analysis by the
Federal Highway Administration found that for every $1 billion invested in
highway construction approximately 27,800 jobs were created. The economy
gets a boost! Invest $7 billion in state transport needs and $42 billion in
benefits will come to Washington State.
Yes, gas prices will go up and drivers will continue to move
toward higher efficient forms of transportation.
Will this
work?
Raising the gas tax won’t pay for everything needed but it
continues to raise the incentives for more fuel efficient cars and alternate
forms of transportation. This proposal will raise the revenue needed to
maintain the existing infrastructure but not raise the required revenue to fund
the unfunded WSDOT road projects. Additional forms of funding will be required.
References:
(“WSDOT - Budget and Financial Analysis - State by
State Fuel Tax Comparison,” n.d., p. 2)
(TRIP: A
National Transportation Research Company, 2014).
(“FHWA -
Employment Impacts of Highway Infrastructure Investment,” 2007).
(“Study: Invest $7
billion in state transport needs, $42 billion in benefits will come to
Washington state - Puget Sound Business Journal,” n.d.)
(Washington State Department of Transportation, 2015)
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