Culver’s Bonding Bill in Jeopardy – Return of the Gas Tax?
- Thursday, March 19, 2009, 5:01
- Iowa, Top Story
- 824 views
- 6 comments
Governor Chet Culver’s $750 million bonding proposal is has met serious objections with Democrats in the House and Senate. Legislative Democrats want to change everything in Culver’s proposal from what the money would be used for to the types of bonds that will be used to fund the program.
The news of the dissension from fellow Democrats comes as Culver is on a statewide tour trying to build support for his proposal. Democrat lawmakers are offering a different $700 billion dollar bonding plan that would not provide one dime for bridge and road repairs. Instead their plan calls for: $325 million for flood recovery projects; $200 million for new public buildings, repairs, rural broadband, and rail hubs; and $175 million for ongoing projects.
The legislative Democrats’ proposal couldn’t be more different from Culver’s. Culver’s proposal uses road and bridge repairs to make it an easy sell for lawmakers and Iowans. A majority of Iowans support spending money to make sure state and local roads and bridges are in good shape. To bolster Culver’s plan, he can simply cite the Iowa D.O.T’s Time 21 Study which calls for increased funds.
By removing bonding money for roads and bridges, legislative Democrats are making a radical change to Culver’s proposal. Legislative Democrats want the bulk of the bonding money to go for flood recovery projects. By making flood recovery the centerpiece of their proposal, it will be difficult for Republicans and Culver to oppose their plan. That said, their refusal to do anything about Iowa’s roads and bridges could reignite the debate for an eight-cent increase in the state’s gas tax.
While this is another embarrassment for Governor Culver, it’s also a bad deal for Iowans.
Both Culver and legislative Democrats want to borrow massive amounts of money, which will allow them to spend more money than the state takes in. Legislative Democrats don’t want to commit to paying back the debt with only gambling revenues. They prefer to decide which funds to use each year, which they argue will save the state millions of dollars.
Regardless of what proposal moves forward, Democrats will be saddling future generations with debt that they will have to deal with for years to come. More troubling is the possibility that the Democrats could pass a $700 million bonding proposal AND increase the gas tax.
The possibility of a bonding bill and gas tax increase happening is significant. We already know that some Republicans are open to the idea of increasing the gas tax, and it will also be politically difficult for Republicans to oppose money for flood recovery projects.
About the Author
Craig Robinson has written 700 stories on this site.
Craig Robinson serves as the founder and Editor-in-Chief of TheIowaRepublican.com. Prior to founding Iowa's largest conservative news site, Robinson served as the Political Director of the Republican Party of Iowa during the 2008 Iowa Caucuses. In that capacity, Robinson planned and organized the largest political event in 2007, the Iowa Straw Poll, in Ames, Iowa. Robinson also organized the 2008 Republican caucuses in Iowa, and was later dispatched to Nevada to help with the caucuses there. Robinson cut his teeth in Iowa politics during the 2000 caucus campaign of businessman Steve Forbes and has been involved with most major campaigns in the state since then. His extensive political background and rolodex give him a unique perspective from which to monitor the political pulse of Iowa.
6 Comments on “Culver’s Bonding Bill in Jeopardy – Return of the Gas Tax?”
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We can only hope the gas tax is back on the table. Only the most partisan of hacks had any issue with the gas tax (I’m looking at you, Chet). It’s such a small increase that could do so much for so long.
I mean, I know ALL forms of taxation are evil, but maybe fixing roads and making sure our agriculture economy isn’t hung out to dry is a little important.
Maybe?
Steve – if you want to pay more then pay more. Send a note and check once a month to Director Richardson in Ames. They will cash your check. You are a patriotic Iowan. Thank you for your dedication to the state.
So you’re not willing to pay five bucks a month more for gas to have safe roads and bridges?
Cry me a river Steve Right. Last year the state collected just under $300,000,000 in fuel taxes from Gasoline, Gasohol, E-85, Aviation Gasoline, Aviation Jet and Diesel. Where did it all go?
The tax rate for Gasoline in Iowa is $0.21 per gallon, and that doesn’t even included the $0.184 per gallon in federal taxes. Is almost $0.40 per gallon not enough tax for you? So with all this hemming and hawing from politicians paying poor on the taxpayers’ dime. Why don’t we start by asking them what they did with the money they already confiscated at the pump?
They paid for roads with the money raised so far. But we haven’t raised the gas tax since 1989, and construction is a little more expensive today.
I understand all taxes were invented by Satan, but don’t you think you’re taking the anti-tax thing a bit too far. It makes sound, well… kind of crazy.
Interesting that you picked a date after the 4.0¢/gal hike that took place around 1987-1988. Hate to break it to you, but gasoline taxes per gallon in Iowa have steadily gone up by fractions of a penny every year but one, to the current 21.0¢/gal.
If this whole debate is about fixing roads and bridges, and making sure that individuals that use and abuse this infrastructure pay their fair share. Then repeal all gas taxes, and make ever road and bridge in Iowa a tollway. With all tolls collected for that section of infrastructure, only to used used on the maintenance and upgrades of that item. Problem solved.