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New disclosure forms show that a group campaigning to increase sales tax for transportation has raised $425,000 — thanks, in part, to large donations from companies that build roads or manufacture mass-transit buses.
California-based Gillig — which makes some of the buses used by the Utah Transit Authority — donated a hefty $25,000 to Utahns for Responsible Transportation Investments (URTI) to push Proposition 1. UTA says it hopes to expand bus service if the ballot measure passes.
Giving twice as much — $50,000 each — were two road-construction firms, Staker Parson Cos. and the Clyde Cos., both based in Utah. Many cities and counties have said they need higher sales taxes to address long-ignored road needs.
Donating even more was Parsons Brinckerhoff, a global engineering company also involved in road construction. It provided a $55,000 "in-kind" contribution by making a free smartphone app to show voters what kind of road construction or extra transit service may be funded in their areas if Prop 1 passes.
Such companies are "the easy low-hanging fruit" to attract as donors, said Abby Albrecht, who is directing the URTI campaign for Prop 1. "Those are the corporations that this makes a lot of sense to."
But Evelyn Everton, Utah director of Americans for Prosperity, which opposes Prop 1, says, "When you look at who is donating to this interest group, it is really the 'who's who' of transportation companies who are kind of waiting for their chance at a $100 million taxpayer payout."
Albrecht said other business groups are starting to donate more because they believe a good transportation system is essential for business.
"Business gets that we have to pay for things, and it's much easier to pay for them up front," when maintenance costs are lower, "than to wait for a balloon payment" when major road reconstruction is needed because of long neglect, she said.
Prop 1 would raise sales tax by a penny for every $4 in purchases. In Wasatch Front counties, 40 percent of the money would go to UTA for transit, and the rest would go to cities and counties for roads and other transportation projects.
Legislative analysts estimate the tax would cost about $50 per person annually.
Seventeen counties will vote on it Nov. 3.
The Salt Lake Chamber, which formed URTI as a political issues committee to fund the campaign for Prop 1, has provided $150,151 to the cause, including a $100,000 loan.
Some other large donors from the business community included developer K.C. Gardner Co., $25,000; Cache Valley Electric, $25,000; Granite Construction, $15,000; Asphalt Systems, $7,500; and $5,000 each from engineering firm HDR, Hughes General Contractors, Lakeview Rock Products and the Salt Lake Board of Realtors.
Disclosure forms show that URTI has spent $300,370 so far — including $106,550 to Exoro Group for advertising and campaign consulting, and $188,500 to Penna Powers for TV and postcard ads.
"We officially launched most of our media campaign on Monday," Albrecht said, "radio, TV, billboard, online and some direct mailers."
While supporters of Prop 1 are mounting a well-funded campaign, Everton lamented that opponents "are really just left to talk to their neighbors … and just hope people are going to show up to the polls in an off-election year."
"When you have businesses that are able to band together and get a tax increase on the ballot and invest a bunch of money in a marketing campaign," she said, "I think that doesn't bode very well for our state."
Everton said, "I would encourage voters to try to see beyond the glossy mailers and the feel-good commercials and just remember that no matter how this tax increase is sold, it's going to be taking money away from Utah families."