Fuel tax increase could be revived with public backing, Culver says

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By Whitney Woodward | Thursday, April 10, 2008 |

DES MOINES — An increase in the state’s fuel tax could be used as a means to generate road construction funding, providing voters are sold on the need for the increase, Gov. Chet Culver said Monday.

The governor nixed the tax hike plan last year, citing the high cost of fuel. His declaration effectively killed serious debate on the tax boost, prompting lawmakers to advance plans to raise vehicle registration fees to produce the needed infrastructure money.

But speaking to the Iowa Transportation Commission at the Capitol, Culver opened the door to the increase.

“Maybe in 2009 or beyond, the gas tax increase could be a part of the equation,” he said.

For the tax boost to re-enter that equation, the public must be convinced of the need for road construction money, the governor said.

“I think Iowans will be more willing to consider it in the future if we explain, as you have time and time again, the demands out there,” Culver told the seven-member panel.

Culver noted that during his campaign for the governor’s post, he informed voters of his intention to raise the cigarette tax $1 per pack, which lawmakers did last year. However, candidates did not discuss a possible fuel tax hike, he said.

“We didn’t talk about this in 2006, when any of us were running. No one mentioned the possibility of raising the gas tax,” he said.

Lawmakers this year could campaign on the need to finance road construction with a gas tax, Culver said. All House seats and half of those in the Senate are up for election in November, although no statewide posts will be before voters until 2010.

Culver also said public-private partnerships could supplement the state’s infrastructure fund in the future, although he said he wasn’t interested in establishing tollways.

With less than three weeks left in the Legislative session, both the House and the Senate are considering plans to increase Iowans’ vehicle registration fees. The packages would generate about three-quarters of the $200 million the Iowa Department of Transportation says is needed annually to adequately fund state road projects.

Culver said he supported the concept of these plans, although he wants to make sure members from both parties support them, citing concerns that lawmakers would be hurt at the ballot box come Election Day if members of only one party voted for the fee increases.

An increase in the state’s fuel tax could ensure the DOT hits its funding goal. Each penny increase would generate an estimated $22 million each year.

Many lawmakers have harbored hope in the fuel tax increase because it would be shouldered by both in-state and out-of-state residents who use Iowa’s roadways. Both bills call for the establishment of a special body to study a fuel tax increase and report back to lawmakers by the end of the year.