12/28/09-The outlook for Nebraska roads is bleak unless officials come up with new funding options, according to a report.
The Legislature’s Transportation and Telecommunications Committee released a report that shows the state’s dependence on fuel tax collections to pay for transportation work has created a “fiscal crisis.” Less fuel consumption, more fuel-efficient vehicles and changing driving habits have been cited for the downturn.
Fresh off a series of public hearings on highway funding, the panel outlined 31 tax and fee hikes that residents submitted around the state. Among the suggestions included in the 62-page report is a higher fuel tax. The state’s tax rate is scheduled to increase 0.4 cents to 26.8 cents per gallon Friday, Jan. 1.
Other options brought up by Nebraskans are indexing the fuel tax to inflation, which would allow for regular increases. Toll roads and public-private partnerships also were mentioned, as well as using bonds to pay for highway work.
Another option would change the way highway users are taxed – to a system of charging truckers and others by the mile.
The Owner-Operator Independent Drivers Association is concerned that while a vehicle-miles-traveled tax option, or VMT, is drawing a lot of attention at the state and federal levels of government as a possible solution to the transportation funding crisis, it remains unproven. OOIDA executives believe more study is needed.
The Association cites many unanswered questions with the funding option, especially considering that the federal bill does not call for a removal of a fuel tax if established. OOIDA also has concerns about how the information gathered will be used, who will have access to it, and if it will be shared and with whom.
Permitting more gambling in the state with the revenues being used for roads and privatizing 26 rest stops on Interstate 80 were other options brought up by residents.
Increasing the state’s $15 registration fee also was mentioned as an option. The fee hasn’t been raised in 40 years. In addition, boosting the fees for overweight/oversize permits and driver’s licenses were mentioned.
Nebraska legislators aren’t expected to take up a highway-funding bill until the 2011 session – months after the fall elections. The focus of the regular session that starts next week is expected to focus on budget issues.

11/12/09-Nebraska Department of Roads officials recently gave their annual briefing on the status of highway funding to a joint hearing of the Transportation and Telecommunications and Appropriations committees.
Monty Fredrickson, roads department director, told lawmakers that Nebraska is facing the same dilemma that continues to confront so many other states: Funding for road repairs and construction cannot keep pace with needs.
The state now brings in about $310 million annually for roads and bridges. Committee members were told the funding from the fuel tax, vehicle sales tax and federal government is barely enough to keep up with demands. If the trend continues, no money will be available for improvements and new construction.
The news wasn’t a surprise to lawmakers. The Transportation and Telecommunications Committee recently held statewide hearings to gather ideas to help perk up the state’s prospects for getting roadwork done.
Among the options discussed are increasing the fuel tax and vehicle registration fees. Using bonds is another option, along with tolls.
One option that is drawing increased attention around the country is changing the way highway users are taxed – to a system of charging truckers and others by the mile. The Highway Commission has brought up this revenue option for further consideration.
While serious consideration of a vehicle-miles-traveled tax option, or VMT, is probably several years away, officials in Nebraska and elsewhere are likely to give it a long look. There also is an effort at the federal level to establish a pilot program to study VMT as a replacement for the fuel excise tax.
The Owner-Operator Independent Drivers Association is concerned that while the VMT is drawing a lot of attention in government as a possible solution to the transportation funding crisis, it remains unproven. OOIDA executives believe more study is needed.
The Association cites many unanswered questions with the funding option, especially considering that the federal bill does not call for a removal of a fuel tax if established. The current system of levying federal taxes on truckers is already discriminatory and harmful.
OOIDA also has concerns about how the information gathered will be used, who will have access to it, and if it will be shared and with whom.
The Transportation and Telecommunications Committee is expected to have a report complete in the next few weeks to address road funding options. Any funding plans can be considered during the regular session, which convenes Jan. 6.

10/29/09-Officials in Nebraska met recently to discuss road funding issues. Highway commissioners were informed during a gathering in Lincoln, NE, that money for maintenance and construction of roads is nearing flat-line status. To make matters worse, the revenue generated from the state’s fuel tax is dropping due to less fuel being consumed. More fuel-efficient vehicles and changing driving habits were cited for the downturn.
With that less-than-rosy picture painted for long-term funding under the current setup, the Legislature’s Transportation and Telecommunications Committee held statewide hearings recently to gather ideas to help perk up the state’s prospects for getting roadwork done.
Among the options discussed are increasing the fuel tax and vehicle registration fees. Using bonds is another option, along with tolls.
One option that is drawing increased attention around the country is changing the way highway users are taxed – to a system of charging truckers and others by the mile. The Nebraska Highway Commission brought up this revenue option for further consideration.
While serious consideration of a vehicle-miles-traveled tax option, or VMT, is likely several years away, officials in Nebraska and elsewhere are likely to give it a long look.