Letter: Lawmakers should listen; increase gas tax and other options needed to support roads, runways and railways
Roadways, runways, rail lines and river-ways are the lifeblood of logistics.
A world-class infrastructure is vital to the movement of products and the future economic prosperity of Indiana. By 2035, freight is projected to double according to the United States Department of Transportation. Indiana’s current transportation network cannot support that volume without significant investment by the General Assembly and the Governor-elect.
As a trucking company, we haul products over roads and bridges that allow Indiana agriculture producers and manufacturers to get their products to market. In order to accomplish this, we must do so in the most cost-effective, efficient, and innovative ways. The capacity and conditions of Indiana’s roads and bridges are vital to our company and our mission.
According to Conexus Indiana, the state of Indiana needs approximately $1.4 billion in additional state revenue per year for 20 years in order to address all of the infrastructure network improvements needed by 2035. Currently, Indiana spends approximately $900 million per year of state money on road maintenance (at a fair level) and new capacity road projects. We understand the challenges associated with generating this amount of additional revenue. However, it is imperative that the General Assembly enact a long-term funding solution that will allow Indiana to remain competitive for decades to come.
As a business in a rural community, we depend upon a system of airports, across to the country, to move customers into and out of Dubois County through the Huntingburg Regional Airport. This asset is a mode of transportation that enables us to compete in a global economy.
Governor Mike Pence’s Blue Ribbon Panel on Transportation Infrastructure and the business community have identified a minimum need of $1.1 billion per year to complete vital maintenance and added capacity projects. Added capacity projects include; Mid-State Corridor/I-67, finishing I-69 Section 6; US 31 remaining sections; the Illiana Expressway; I-69 Ohio River Bridges; US 30 limited access from Fort Wayne to Valparaiso; additional lanes on I-65 and I-70 from state line to state line; US 36 limited access; US 27 improvements; I-65/69 connector; and I-70/74 connectors.
How does the General Assembly come up with the money to pay for this? First and foremost, the sales tax on gasoline is a user-fee that should be dedicated to our highways and bridges and not diverted to the state’s General Fund. The state should adjust the gas tax for inflation and for the loss of revenue due to increased vehicle fuel efficiency. These revenue options could be done without raising any taxes and would generate approximately $600 million per year. That leaves an additional $500 million per year that is needed. The Funding Indiana’s Roads for a Stronger Safer Tomorrow (FIRSST) Task Force provided their revenue generating recommendations on Dec 19th, 2016. Those recommendations should be given serious consideration by the 2017 General Assembly and the Governor-Elect.
We would like to encourage State Senate Leadership (David Long and Luke Kenley) and State House of Representatives Leadership (Brian Bosma and Tim Brown), to fund the critical added capacity projects and additional maintenance needed to keep Indiana competitive in Roadways and Runways. We ask the General Assembly and Governor-Elect to consider the above-mentioned revenue recommendations and to consider all other FIRSST Task Force recommendations that get us to the needed additional $1.4 billion per year for the next 20 years.
Hank Menke
President/CEO OFS Brands
Huntingburg, Ind.
Agree with purposes and needed resources, et al, but not via gas tax…too many uncontrollable foreign factors with gas prices. Tax tobacco and alcohol products…a gold mine…but in the unlikely event people back off on these purchases, at least some good will come of it.
Certain members of the Indiana General Assembly have already telegraphed their desire to increase the gas tax. This is a foolish move on the part of our so-called representatives, who long ago abrogated their duty to those whom they are supposed to represent, having found it much more lucrative to represent Big Business, Big Chamber of Commerce…anything and anyone Big and with lots of $$$$$$$ with which to fill their re-election coffers.
That having been said…Any gas tax increase will only hurt those who use the most of it, and that means the people who must commute several miles a day to and from work. Public transportation is not realistic in an area of this size, so workers must rely on their personal vehicles. Any increase in gas prices (which would naturally occur if taxes on this vital commodity are raised) will only serve as a pay cut to those workers.
I would venture a guess that the letter writer has never known what it is like to actually work for minimum wage, else he would not advocate such a ridiculous idea in this day and time with so many people still out of work and others having been forced to take cuts in pay in order to be able to find and keep a job.
I agree that our infrastructure is in anywhere from poor to terrible shape and must be dealt with. All one has to do is to drive across the horrible Sherman Minton Bridge between New Albany and Louisville to see that. (Why Indiana refuses to paint this old, badly rusted monstrosity is beyond me…but I digress.)
Mrs. Green’s suggestion of taxing tobacco and alcohol has much merit. In addition, all gas taxes collected should and must be used only towards infrastructure maintenance instead of being funneled into the general fund where they can be squandered on anything but infrastructure.
When will politicians and those who support them ever learn to live within their means, as We the People must do? (That is a rhetorical question, and I already know the answer – NEVER.)
To be brief, if TIF was removed, the amount of ta revenue returned to schools would allow the state to redirect the required funding to roads while using all the gas tax on infrastructure.
We are over taxed. No need to raise taxes.
http://gateway.ifionline.org/TIFviewer/
There are $23.5 billion of Property Assessed Value in Indiana TIF. At 2% tax rate, That is $470 million per year being redirected to TIF and not local government. Since the schools are usually 40% of that, the state could free up to, but most likely just 75% of, $188 million/year for schools just from that reform.
Then put tolls on I-70 where 60% of the traffic is from out of state per reports.
Then use user fees, and not taxes on fuels, to tax vehicles equally. This way a Prius paves its fair share, where a used car owned by lower income people, don’t pay more.
Yes, increase the tax on truck diesel a little bit. Same for gasoline. Instead of inflation, use the ratio of fuel economy from the past to today, and pick something in-between there.
BUT… to not force vehicles to try to avoid roads or driving in Indiana, raise the speed limits on tolled roads. Instead of static speed limits, use the German Autobahn as an example and have it change based on weather via a digital system or a sign with two limits (day and no weather, everything else). I think we are all smart enough to figure that out…
I agree that TIF is being overused and is unfairly shifting the burden of taxes away from businesses and onto individuals.
We’re taxed to death already. Even with property tax caps, local governments still find ways to constantly increase taxes. Raise individual property taxes. Raise school taxes. Raise gas taxes. Tax, tax, tax, tax. Hello? Those of us out trying to earn a living do not have an unlimited supply of money!
Again I say, it is time for local governments to start living within their means rather than constantly placing more and more taxes upon us.
Adrian, in one comment you state, “We are over taxed. No need to raise taxes.” With which I fully agree. But in another you state, “Yes, increase the tax on truck diesel a little bit. Same for gasoline. Instead of inflation, use the ratio of fuel economy from the past to today, and pick something in-between there.” Which position are you taking? To increase or not to increase gas taxes?