10/28/08-Revenue generated from the fuel tax in Louisiana could be tapped to help pay for a special bridge and highway construction program.
William Ankner, secretary for the Louisiana Department of Transportation and Development, told lawmakers this month that the state probably will need to rely on fuel tax revenues for the road and bridge program because the money earmarked for the work is not sufficient to finish it.
The House Transportation, Highways and Public Works Committee didn’t vote on the issue. The discussion was for informational purposes only.
Louisiana imposes a tax of 20 cents-per-gallon on diesel and gas. Of that amount, 16 cents is used for the DOTD’s operations and general highway construction needs. The rest of the money – 4 cents per gallon – goes for special projects.
Lawmakers were told that the agency soon could be forced to tap into the special projects portion of the tax to help pay for bonds financing projects not yet underway, The Times-Picayune reported.
Each penny of the 20-cent-per-gallon tax generates about $30 million. With declining fuel tax dollars available to the state because people are driving less, the DOTD predicts the funding crunch in the state will worsen during the next several years.
To make matters worse, there is uncertainty about federal money and escalating costs for construction materials.
The options to address road funding needs that are expected to draw consideration during the 2009 regular session include speeding up the use of vehicle sales taxes for road work. Another possibility is redirecting money from transportation that goes for other uses.