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The Baton Rouge Area Chamber and 21 other groups have urged state lawmakers to approve an increase of at least $500 million per year for roads, bridges and other transportation needs.
“While a variety of sources have been considered, the bulk of funding must come through an increase in the state gas tax,” according to position papers released during an April 4 press conference.
A gasoline tax increase of about 17 cents per gallon would be needed to raise $500 million more per year if it is the sole source of new funding.
In December, a study group appointed by Gov. John Bel Edwards recommended a $700 million annual increase in road and bridge spending, part of which would be aimed at trimming Louisiana’s $13 billion backlog of rank-and-file needs.
That recommendation would require an increase of about 23 cents per gallon.
An additional $16 billion would be needed for a wide range of “mega” projects, including a new bridge across the Mississippi River in Baton Rouge, long a chamber priority.
The groups spelled out their aims six days before the start of the 2017 regular legislative session, where transportation is expected to be a key topic.
“If a major new revenue source is not passed this year, our next opportunity will not come until 2021,” Adam Knapp, president and CEO of BRAC, said in a statement. “Frankly, that is not an option.”
Two of the next three years will not be fiscal sessions, and 2019 is an election year, which means any tax increases are unlikely.
Higher taxes require the support of two-thirds of the House and Senate, always a high hurdle.
In addition, state services face another budget shortfall of about $450 million, which will complicate efforts to raise new revenue.
| By Will Sentell The Advocate (Baton Rouge, La.) |
© 2017, Transport Topics, American Trucking Associations Inc.
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