Last week, the Senate approved a tax plan that would drastically reduce needed revenues and shift the tax responsibility downward, away from the wealthiest tax payers.
This tax plan would also reinstate the cap on the state’s gas tax, which is a revenue source that accounts for more than half of state revenues dedicated for transportation projects. If the plan passes, the cap would be in place for the current 2013-14 fiscal year that began last week, resulting in a $5 million loss to the transportation budget that supports road construction, road maintenance, and public transportation.
Five million dollars is a very small share (.2 percent) of the $2.8 billion transportation budget. The larger cause for concern is that budget writers are following the imprudent precedent set by lawmakers from both sides of the aisle who keep enacting short-sighted, quick fixes to the gas tax—rather than reforming the structure of the tax to smooth its volatility. Read More