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Criticism grows over Idaho's road-funding deal

Some lawmakers say the compromise should be reconsidered or delayed.

BY WILLIAM L. SPENCE - THE LEWISTON MORNING TRIBUNE

Published: 09/23/09


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ADDITIONAL INFORMATION

Options for raising money

A legislative task force this summer considered several options for replacing the $21 million a year scheduled to be reallocated to highways starting next July from the budgets of the Idaho State Police and the state Department of Parks and Recreation. Ideas discussed include:

- Higher vehicle registration fees or driver's license fees.

- A half-percent vehicle sales tax.

- New fees on tire sales.

- Diverting some sales tax revenue related to recreational or automotive items.

- New surcharges on vehicle insurance.

- New surcharges on telephone and wireless access lines.

- Higher licensing fees for convenience stores or large-box stores.

- New or higher taxes on alcohol and soda pop.

The hard-fought deal that finally ended 2009's long legislative session, which was hurriedly approved the last few days of the 117-day session, allowed the governor and the House to declare victory in their long standoff over how to pay for Idaho's growing backlog of transportation maintenance needs.

Gov. Butch Otter initially wanted to generate $175 million in new revenue, mostly by raising the fuel tax and vehicle registration fees and by creating a new tax on rental cars.

House lawmakers agreed to raise about $36 million by eliminating the ethanol fuel tax exemption and boosting Department of Motor Vehicle fees, but they balked at increasing the fuel tax and registration fees.

Otter felt more needed to be done, so he vetoed more than 30 appropriations bills and forced the Legislature to stay in town. That led to the second-longest session in state history, one day short of the record.

The deal that finally broke the stalemate calls for an additional $21 million in fuel tax revenue to be shifted from the Idaho State Police and Department of Parks and Recreation to the Idaho Transportation Department beginning in July 2010.

The deal also created a task force to look for ways to replace that lost revenue with a new, dedicated funding source. Otherwise, the state police and Parks and Recreation will end up competing with other state agencies for scarce general-fund money.

Rep. Shirley Ringo, D-Moscow, a task force member, said she's heard from a number of people who "are not amused" by the funding shift, largely because it undermines a longstanding commitment to use taxes on fuel bought for off-road vehicles to pay for off-road trail maintenance and other recreational projects.

The $21 million funding shift would cost ISP $16.4 million per year, while the Department of Parks and Recreation would lose about $4.6 million, including $1.8 million in its off-road and road/bridge maintenance account, $1.2 million for waterway improvements and $1.2 million for capital improvements.

"The whole thing was a lame, hurried decision that should be reconsidered," Ringo said.

Senate Transportation Committee member Lee Heinrich, R-Cascade, agreed. Unless the task force comes up with a good alternative, the Parks and Recreation shift should be reconsidered, Heinrich said.

"It's been a good, steady program that benefited the entire state," he said.

Sen. Joe Stegner, R-Lewiston, the assistant Senate majority leader, said this issue "is something legislators will want to look at."

Otter spokesman Jon Hanian declined to comment on the possibility of postponing or revising the funding compromise.

The Legislature reconvenes in January. The task force might begin making recommendations as early as this month.

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