11/21/07-A plan under study in Iowa would raise $200 million for road improvements through increases to certain taxes and fees.
A bipartisan legislative panel agreed to offer a package to lawmakers and Gov. Chet Culver in an attempt to avoid an election-year standoff on the issue. The package was proposed by the Associated General Contractors of Iowa, a road construction industry group.
Trying to head off a projected shortfall, the interim panel is touting an increase in the state’s fuel tax by 4 cents per gallon. The tax would increase by 2 cents on May 15, 2008, and another 2 cents on Jan. 1, 2009.
Currently, the per-gallon tax rate for diesel is 23.5 cents while the gas tax is 22 cents.
They also want to boost registration fees for pickup trucks, driver’s license, trailer registration and title fees. The fee for trailers that weigh more than 2,000 pounds would increase from $10 to $30.
The panel was appointed by the Iowa Legislature after a state Transportation Department study concluded the state faces a shortfall of at least $200 million a year for road and bridge work throughout the state.
The shortfall is blamed on fuel tax revenues that don’t go as far as they used to, increased congestion and higher construction costs.
The package can be considered by lawmakers during the regular session that begins in January.

10/24/07-With a little less than three months remaining before the start of the next regular session in Iowa, an interim committee of state legislators is discussing options to pay for road and bridge work.
The panel was created after the Iowa Department of Transportation revealed that state, city and county roads are staring at a $28 billion shortfall for road and bridge work during the next two decades.
Lawmakers aren’t limiting their discussion to a few options to fill the $200 million yearly funding gap. The possibilities drawing consideration include increasing the fuel tax rates and other fees.
Sen. Tom Reilly, D-Oskaloosa, said he understands none of the options will be popular among voters. He also acknowledged that lawmakers on both sides of the aisle are leery of getting behind tax increases for road work with the 2008 election season looming.
Nevertheless, legislators have to do something now or the problem will continue to grow, Reilly told Radio Iowa.
The most-discussed option for eating into the funding shortfall is boosting the state’s per-gallon tax rates on diesel and gas by 9 cents. Other options include boosting vehicle registration and driver’s license fees and stiffer fines for overweight trucks.
The Legislature’s interim committee studying transportation funding is expected to meet again on Nov. 19. House and Senate lawmakers will work to hammer out recommendations before the regular session opens Jan. 7.

8/15/07-Gov. Chet Culver and others are trying to shore up money for road and bridge repairs. To expedite the process, an interim committee will gather this fall to study transportation funding. The panel was created after the Iowa Department of Transportation revealed that state, city and county roads are staring at a $28 billion shortfall for road and bridge work during the next two decades.
Officials with the Iowa DOT say the state needs $200 million more per year to keep up with transportation needs, The Des Moines Register reported. The added revenue would amount to an extra 9 cents per gallon collected on the state’s fuel taxes. Other options include boosting vehicle registration and driver’s license fees and stiffer fines for overweight trucks.
To make matters worse, funding aid from the federal government is cloudy. The U.S. Department of Transportation has announced it may cut funding to states.
Culver is expected to have a funding plan at the ready to present to the Legislature when it convenes the 2008 regular session.