Transportation stance hardens; chairman says compromise needed

? Gov. Kathleen Sebelius’ administration hardened its stance Monday in favor of issuing bonds to shore up the state’s transportation program, but a key legislator said compromise will be needed to save road projects.

Transportation Secretary Deb Miller said if legislators take no action this year, the Department of Transportation will have to cancel $150 million worth of projects later this year and an additional $100 million each year into 2008. The projects jeopardized would be ones the state promised to complete when legislators created the transportation program in 1999.

Sebelius has proposed issuing $465 million in bonds to help keep the transportation program intact, but some legislators are wary of the state taking on additional debt. House Transportation Committee Chairman Gary Hayzlett drafted an alternative proposal that would rely on existing state revenues.

The Transportation Committee had a hearing Monday on the governor’s proposal and planned to consider Hayzlett’s plan Tuesday.

Miller contends the bill from Hayzlett, R-Lakin, is unrealistic because the state created a shortfall in funding the $13 billion transportation program by diverting general tax revenues from highway projects.

“It’s not good enough to balance the program on paper figures,” she said after Monday’s committee hearing. “We’ve already been there.”

Miller said she was not sure Sebelius would accept proposals to increase gasoline and diesel fuel taxes instead of issuing bonds.

But Hayzlett said he does not hear much enthusiasm for Sebelius’ proposal to issue bonds.

He said if Sebelius’ plan is the only one her administration will accept, “I think we’re not going to have a plan.”

Hayzlett added: “It looks like compromise is the name of the game.”

In setting up the transportation program in 1999, legislators promised to dedicate ever-increasing amounts of sales tax revenues to highway projects. However, legislators just as quickly began diverting those sales tax revenues to other government programs, leaving a shortfall Miller estimated at $775 million.

Sebelius proposes to resume the sales tax set-aside in 2006, dedicating $264 million over three years. Under Hayzlett’s plan, the set-aside would resume next year and dedicate $413 million over four years.