Through time it is easy to forget the intent of constitutional amendments; and as we forget it becomes easy for some with a special interest to not only violate constitutional intent, but also put in jeopardy the infrastructure that is the foundation of our state economy. Article IX, Section 19 of the Maine constitution passed Oct. 27, 1944 is just such an example.
Section 19 states, “All revenues derived from fees, excise and license taxes relating to registration, operation and use of vehicles on public highways, and to fuels used for propulsion of such vehicles shall be expended solely for the cost of administration, statutory refunds and adjustments, payment of debts and liabilities incurred in construction and reconstruction of highways and bridges.” It goes on to clarify that such revenue “shall not be diverted for any purpose.”
Unfortunately the Office of Fiscal and Program Review is ignoring this amendment language, according to an analysis. Since 1988, $107.7 million has been transferred from the Highway Fund to support the General Fund. $53.1 million has been transferred in the current legislative cycle. Another $11.4 million is being proposed for the current Gov. Baldacci supplemental budget for a potential two-year transfer of $64.5 million.
The $64.5 million transfer is being used to fill shortfalls in the General Fund, predominantly to fill the $225 million Medicaid shortfall. As a result, constitutionally protected highway funds are subsidizing social programs. Such transfers were predicted and expected by those who wrote Article IX, Section 19 in 1943.
On March 25, 1943, a Sen. Elliot said in support of passage of Article IX, Section 19, “In the last few legislatures the big problem before the legislators was the raising of new money in order to take care of social security, old age assistance, pauper accounts and so forth.” He went on to say, “In no case were these attempts successful. But may be successful in the future.” He predicted the action of future legislatures and he was correct.
To give you an idea of how the transfers affect you, imagine this: If the unconstitutional transfer had not occurred, a road could have been completely rebuilt stretching from Rockland to Portland. A road could have been repaved from Kittery to Millinocket or 8,513 miles of road could have been maintained. This represents a road stretching from Maine to California 21/2 times.
The state of New Hampshire was recently challenged by the New Hampshire Motor Transport for diverting highway funds for rail service improvement. Its constitutional amendment mirrors Maine’s and a ruling is expected within weeks. A similar challenge in Massachusetts was successful and led to a constitutional change.
In light of Maine’s obvious misuse of funds, it is time for such a challenge here. Even though some legislators will vote no on such transfers, until the Superior Court is asked to rule on the constitutionality of the transfers nothing will change.
In 2002 the Maine Legislature passed an automatic indexing on the gasoline tax. This gas tax automatically increases your taxes at the rate of the consumer price index. When the law was first proposed, it was intended to address chronic shortfalls in the Highway Fund. Since taking effect the indexing has generated $22 million in fiscal year ’04 and will generate $27.5 million in fiscal year ’05.
Gov. Baldacci’s proposal to transfer $64 million completely negates the benefits of this new revenue and further acerbates the projected ’06-’07 Highway Fund shortfall of $40 million to $50 million. Consequently, the only option available to maintain existing roads is through greater bonding or higher taxes.
As we see the road projects being scaled back across this state, it is disturbing to learn that tax revenues are being diverted to subsidize social programs. General Fund social programs are important, however, they need to be funded through the proper channels. For legislators choosing one over the other, it creates conflicts that jeopardize both. Artificially inflating Medicaid budgets on the taxes paid by motorists depletes the programs of the Department of Transportation, leading to poorly maintained roads and a backlog of needed projects.
A healthy economy and safe roads are imperative if we want to attract new jobs. Diverting gas tax revenues violates our constitution and jeopardizes our future. It is time for the Legislature and the people of Maine to say no – again.
Rep. David Trahan, R-Waldoboro, serves in the 121st Maine Legislature representing the people of Jefferson, Nobleboro and Waldoboro. He is the ranking Republican on the Inland Fisheries and Wildlife Committee.
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