December 5, 2008
Union Leader
CONCORD – Lawmakers from both parties say the state needs to increase its gasoline tax to keep highways maintained, but Gov. John Lynch is not convinced of that yet.
Lynch said this week he hasn’t changed his stance against a gas tax hike, but he left room to be persuaded it is the right move.
He said the state needed to figure out how much highway work needed to be done and how much it would cost before talking about raising revenue. He noted a federal economic stimulus package was expected to send money for highway and bridge construction to all states.
“That may be part of the overall financing package going forward,” Lynch said.
Transportation Commissioner George Campbell told lawmakers last month that without spending cuts or new revenue, the state highway fund faces a deficit of more than $1 billion over the next 10 years. The state’s new highway plan slashed $4 billion in projects down to $2 billion.
The state’s Highway Trust Fund, dedicated to highway upkeep and construction, is fed by the gas tax and motor vehicle registration fees. With drivers traveling fewer miles, buying less gas and keeping cars longer, the fund is about 7 percent behind projections.
Rep. David Campbell, D-Nashua, said the costs of highway and bridge materials rose by 60 percent over the past four years, cutting the highway fund’s buying power.
He is sponsoring a bill to raise the state’s 18-cent gas tax over several years and dedicate the increased revenue to highway expenses. The state would share a portion of the money with local government. Each 1-cent increase would raise about $8 million, Rep. Campbell said.
“I personally don’t see any way to fill this hole without raising a tax that hasn’t been raised since 1991. Nobody likes the ‘T word,’ but at some point, it becomes the only option,” he said.
Lynch said he thinks it’s too early to talk about a tax hike.
He said he’ll take the same approach to highways he took with the state turnpike system: determine what work needs to be done, then discuss how to fund it. For turnpikes, the solution was a toll increase.
“I continue to work with Commissioner Campbell in terms of identifying exactly what our critical needs are as a state,” he said this week. “Then we’ll have a discussion about ways, including creative ways of financing those needs.”
Lynch is not so adamant that he would promise to veto a gas tax bill. He said he prefers to watch important bills work their way through the Legislature, since their details change shape as the House and Senate put their stamp on them.
Rep. Campbell, who chaired a joint committee study of the highway fund this fall, said he sees a lot of work ahead persuading everyone from Lynch to the average voter.
“There are a lot of pieces to this puzzle, but the gap is so big, I don’t see any way we can bridge it without some form of added revenue in the form of a gas tax,” he said.
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See how many other taxes have been proposed for the new 2009 legislative session here:
LSRs for 2009