Friday, June 5, 2009

House DPW Committee comments on transporation funding

Guest Perspective from the House Public Works & Highways Committee
The Senate has put back into HB2 the transportation funding plan crafted by the DOT Commissioner and proposed by Governor Lynch in his budget, with certain additions. The current Senate version raises vehicle registrations by $15, adds a new $10 surcharge to driver licenses, and an additional $15 for vanity plates. The Senate budget once again eliminates the 30 percent E-Z Pass discount for all passenger vehicles (not commercial) with a $30 monthly cap, and also assumes that tolls will be raised in Hooksett, Bedford, Rochester, Dover and the Hampton off-ramp. Finally, and most significantly, it calls for combining the current 93 miles of turnpike roads with over 250 miles of I - 93, I - 89, Route 101 east of Manchester, I - 293 and I - 393 (called the “aggregation plan”).

Aggregation is a major policy change that calls for turnpike tolls to pay for the building and repair of non-tolled state roads and bridges. In an interview with Foster’s Daily Democrat, Commissioner Campbell said he considered the system more an “evolution” than a policy change. The Senate’s acceptance of the Governor’s plan will only fund the highway fund in the short-term. There are several reasons this aggregation plan needs to be fully explored before implementation, including:

• Didn’t follow the process - the aggregation plan has not had a public hearing or official consideration by either the House or Senate policy committees. This plan needs to go through the full legislative scrutiny and the public hearing process to assess such questions as:

• Fiscal justification – it is difficult to justify how we can transfer 1.6 miles of I-95 (between the Portsmouth Circle to the Maine Border in HB 391) from the State Highway System to the Turnpike System for $120 million and now be asked to transfer over 250 miles for zero dollars.

• Fairness of the plan - the user-fee policy is eliminated and replaced by “donor communities” and “donor commuters.” A lawsuit is pending in Massachusetts regarding the fairness of turnpike users paying for non-turnpike roads.

• Diversion – last session the General Court worked in a bi-partisan effort to limit diversion of Highway Trust funds for non-highway uses. This plan calls for a major diversion of Turnpike Funds from the Turnpike System to the Highway System.

• Sustainability - this is perhaps a two-year funding plan. It is unsustainable without further toll increases and probably new toll booths in Salem and Nashua, which the Commissioner would not rule out after two years.

• Financial responsibility – under this plan it is possible that within two years both the Turnpike Fund (currently solvent for the near future) and the Highway Trust Fund will be in a deficit.

• Executive Council needs to approve raising tolls - it is unlikely the Executive Council will approve raising tolls for non-turnpike uses, only 18 months after voting to increase tolls for improvements and maintenance of the Turnpike System.

The pros and cons of aggregation require a more detailed study. It is not a matter to be decided in a budget committee of conference. DOT may have to wait another two years before being fully funded, but we believe allowing aggregation into HB2 at this time, without assessing the full fiscal and policy consequences, is simply wrong.

Signed unanimously by all 19 members of Public Works & Highways

Rep. Candace Bouchard, Chairman
Rep. David Campbell, Vice-Chairman
Rep. John Cloutier, Clerk
Rep. Gene Chandler
Rep. James Rausch
Rep. John Graham
Rep. Alfred “Gus” Lerandeau
Rep. Edmond Gionet
Rep. Dale Sprague
Rep. Russ Ingram
Rep. Patrick Long
Rep. Carole Brown
Rep. Mark McConkey
Rep. James Cyr
Rep. Carl Seidel
Rep. Maureen Mann
Rep. Walter Kolodziej
Rep. Peter Ramsey
Rep Clinton Bailey

No comments: