Transport panel aims high in ideas for raising revenue

Kevin Flynn, Rocky Mountain News

Published October 26, 2007 at midnight

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The governor's transportation panel decided Thursday the state should consider spending $2 billion a year to fix Colorado's highways and keep up with increasing traffic.

Though that figure may be politically dead on arrival, panel members said they wouldn't be meeting their mission if they didn't take a stab at a higher amount.

The Governor's Task Force on Transportation Finance is developing alternative ways to raise money for transportation. They have already packaged plans that would raise $500 million, $1 billion and $1.5 billion per year.

But shooting for the moon Thursday, the panel outlined one revenue scenario to hit $2 billion a year.

That would involve an average $100 a year increase in the auto registration fee, a doubling of the current 22-cents-a-gallon state gas tax, a daily hotel room and rental car fee of $6, a state sales tax increase of 0.55 cents and a 2 percent increase in the natural resources severance tax.

The panel will recommend a range of options for Gov. Bill Ritter. Some members said that range ought to include the $2 billion amount.

"I would have a hard time recommending a lower number based on what our vision plan is," said Joe Kiely, Limon town manager and a panel member.

"We recognize there are political realities out there," said Russ George, executive director of the Colorado Department of Transportation. But providing a wide range of options will make the panel's final report stronger when it goes to Ritter next month, he said.

Because the panel initially had trouble coming up with a mix that would hit $1.5 billion a year, any higher amount was seen as out of reach. It had concentrated on coming up with several tax-and-fee scenarios that would reach each of the three lower thresholds.

The panel has determined that it will require a minimum of $500 million more a year to merely maintain the existing roads. Called the "Fix It Now" package, it includes money for resurfacing old roads, repairing bridges and maintaining the current standards, with no new revenue for future projects to reduce traffic congestion.

At the $1 billion level, the package would provide all the maintenance plus a small level of work on important highway corridors, safety, transit, bike and pedestrian improvements and local streets.

At $1.5 billion, the panel would add significantly to the amount going to local streets, beef up the allotment to projects that reduce traffic congestion and provide funding for transit between regions of the state.

The $2 billion level would provide enough for significant congestion and intrastate transit projects.

Tax and fee increases under study

Gov. Ritter's panel looking for more transportation funding is considering various increased taxes and fees to fund maintenance and projects:

Highway maintenance fee (auto registrations): Each $1 increase raises $5 million

• Gas tax: Each penny increase per gallon raises $27 million

• Daily hotel room and rental car fee: Each $1 raises $40 million

• Sales tax on gas purchases: Current 2.9% raises $211 million

• Increase state sales tax: Each 0.1% increase raises $89 million

• Severance tax on natural resources: 3% increase raises$140-$200 million

Note: Tax increases must be approved by voters; fee increases do not.Source: Cdot Staff

flynnk@RockyMountainNews.com or 303-954-5247

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