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Plan to pay for roads to hit wallets
This is an archived article that was published on sltrib.com in 2004, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A 5 cent per gallon gas tax increase. A 1/4 -cent hike in state sales taxes. Increased motor-vehicle registration fees.

Money siphoned from other state programs - an average of $227 million each year for the next 10 years.

All were recommended by a panel of lawmakers Friday, three days after most were re-elected to office.

The fee and tax changes were part of a funding package that has been two years in the making, with a goal of cutting into Utah's $23 billion deficit for future transportation projects.

It is the most aggressive action taken to fund roadways and transit since creation of the Centennial Highway Fund in 1997 and will be presented Wednesday to the Transportation Interim Committee.

"We have a major problem in front of us and the viability of our economy is at risk if the basics aren't taken care of," said Sen. Sheldon Killpack, R-Syracuse, a member of the Legislative Transportation Planning Task Force. "It certainly isn't going to be painless for any one party that is going to be a part of this."

But after working for two years with the task force to develop the transportation funding package, many are concerned that the "pain" isn't being distributed evenly.

"This is money that could be used for other projects that would now have to be cut," said Sarah Wilhelm, an economist with the poverty-research group, Utah Issues.

Money to be shifted to transportation under the plan would come from revenues otherwise destined for programs like health and human services, courts, public safety and higher education.

"It's a tough deal, but there are other things competing for the same money," said Sen. Karen Hale, D-Salt Lake City. "I'd like to see those other things be a part of the discussion."

Currently, highway and transit projects are funded by a menu of taxes and fees: Gas tax and registration revenues, along with transfers of about $60 million a year in general-fund monies from the state sales tax.

Considering the projected population growth of the state and the need for new transportation infrastructure current funding would pay for only $6.5 billion of the $30 billion needed for projects planned during the next 30 years.

The task force plan would fund about $4 billion in projects during the next 10 years, with an additional $500 million to be raised through other sources.

It isn't enough, say transportation planners.

"We all know what the reality is," said Sam Klemm, spokesman for the Wasatch Front Regional Council, which does transportation planning for Weber, Davis, Morgan, Tooele and Salt Lake counties.

Nearly $6 billion, he says, is needed during the next 10 years to cover the costs of projects like commuter rail into Utah County, some TRAX extensions and the Mountain View Corridor along Salt Lake County's west side.

But Klemm commended the task force for its work in considering the funding of highways and transit together. Robin Riggs with the Salt Lake City Chamber of Commerce was pleased that the committee didn't rely only on tax increases, but focused on a shift in budget priorities.

"When you fix a transportation system, it helps the economy," Riggs said. "It helps economic growth. We believe that transportation is important, and maybe as important as anything you might do in the years to come."

Jim Olsen, president of the Utah Food Industry Association, said, "there is a cost [to business] when you have congestion," he said. "We want to stay ahead of the curve rather than sitting in congestion."

But is the plan economically feasible and able to pass through a budget-conscious Legislature? asked David Creer, executive director of the Utah Trucking Association, which was also hit hard with several fee increases.

"Every person in the state of Utah benefits from our roads," he said. "We certainly think we're paying our fair share."

A better plan would involve a property and sales tax increase, so fees are not "localized" among specific groups, said Creer.

Other plans recommended by the task force include a local-option increase in vehicle registration of up to $20.

The money would go toward purchasing and preserving future transportation corridors. Counties could levy a sales tax of up to 3/4 cent for highways and transit under another recommendation.

Utah lawmakers say they are prepared to "bite the bullet" this year after intensive studying of the state's transportation needs.

"This is probably one of the most, if not the most important issue we will be talking about during the [upcoming legislative] session," said Sen. Carlene Walker, R-Cottonwood Heights.

nwarburton@sltrib.com

Transportation task force calls for higher fees, taxes to help fund future projects
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