Senate passes new transportation plan

Legislation would increase motor fuel taxes by 2 cents a gallon

? The Senate passed a plan Wednesday that would raise taxes over the next seven years to finance transportation projects.

The plan, approved 22-17, went to the House, which had not debated it by early this morning.

The compromise proposal drafted by legislative negotiators would raise $338 million for the state’s comprehensive transportation plan. The compromise is about $100 million smaller than the chamber’s original plan. The House has been unable to pass a transportation package and rejected the Senate’s original plan 120-0 last week.

Under the bill, motor fuel taxes would rise 2 cents on July 1, to 23 cents per gallon of gasoline and 24 cents per gallon for diesel.

In addition, registration fees for cars and light trucks would increase $5 to $30.

Highway, airport and shortline railroad improvement projects are funded separately from general government services under a 1999 law creating a 10-year, $13.6 billion transportation program.

Many legislators worry that the program won’t have enough money to finance all of the projects the state has promised because lawmakers have diverted money from the plan for general government programs in recent years.

The shortfall in the transportation program could top $1 billion in its remaining seven years.

Legislators are trying to cover that gap while also seeking to bridge an estimated $290 million shortfall in the $4.4 billion budget for the next fiscal year, which is awaiting Gov. Bill Graves’ signature.

The tax increases would be separate from those lawmakers were considering to fund other government programs.