Legislative team seeking ways to revamp road, bridge funds

AUGUSTA – Determined to find a new way to raise funds to repair and maintain the state’s roads and bridges, the Legislature’s Appropriations and Transportation committees met Thursday to plan a way to keep LD 1790 alive.

The bill, proposed in the spring session by Sen. Dennis Damon, D-Trenton, aims to move Highway Fund revenues away from fuel taxes and toward a more stable source. Maine’s gasoline tax provides most of the state’s funding for road and bridge work, but as people drive less because of high gas prices, revenue has dropped.

In its original version, LD 1790 would have drawn funds from the sales tax on vehicles and the excise tax collected when vehicles are registered. The money would have been deposited into a trust fund operated by the Maine Municipal Bond Bank, thereby making it untouchable to the Legislature for other purposes. The bond bank would then make money available to the Department of Transportation for road and bridge work.

But by tapping sales tax and excise tax funds, the bill created holes in the state’s General Fund. In June, LD 1790 was amended to remove impacts to the General Fund and instead set goals for creating dedicated funds for roads and bridges. The bill passed but is being held over by Gov. John Baldacci until the Legislature convenes again.

In its current form, LD 1790:

. Establishes capital goals for DOT, including reconstructing arterial highways, major collectors and state aid minor collectors over the next several years.

. Establishes a “TransCap” fund at the bond bank to fund long-term capital needs.

. Dedicates, beginning Jan. 1, 2009, 7.5 percent of motor fuel tax revenues to the TransCap fund.

On Thursday, the two committees agreed to form a team, composed of four members from each committee, to work at resolving the funding problems with the bill. The team will work through the second legislative session to reach its goals.

During the joint meeting of the two committees, legislators threw out a variety of ideas about ways to pay for road and bridge work.

Rep. Ed Mazurek, R-Rockland, suggested limiting truck traffic on all Maine roads to 80,000 pounds and less, thereby forcing shippers to use rail, and saving wear and tear on roads. Presently, trucks weighing up to 100,000 can travel on most state roads.

In response to a question from the Appropriations Committee, Damon, who co-chairs the Transportation Committee, said Rep. Boyd Marley, D-Portland, had proposed a bill that would have created a sales tax on gas. That would mean each time gas prices rose, the state would get more revenue. The bill died, Damon said.

Sen. John Martin recalled paying a toll to cross the Memorial Bridge in Augusta when he first served in the Legislature.

“I think we’ve got to go back to toll bridges and highways,” Martin said.

Rep. Linda Valentino, D-Saco, and Rep. Janet Mills, D-Farmington, both members of the Appropriations Committee, noted some of the money-saving suggestions that have been made on the committee’s Web site. Among them are reinstituting tolls on I-295 and merging the Maine Turnpike Authority with DOT.

Not everyone was on board with LD 1790, though.

Rep. Doug Thomas, R-Ripley, said he worried a new funding mechanism would make it easier for the state to spend more money.

“I don’t like [LD 1790],” Thomas said, and agreed with Damon’s comparing it to a vehicle. “It’s a truck,” Thomas said, extending the metaphor. “When it’s fully loaded, it’s going to carry a load of debt delivered to our children and grandchildren.”

But Damon likened the state’s current road and bridge repair policy to putting new shingles on an old house.

“We’re only doing stopgap measures, rather than rebuilding the roof,” he said. Bringing the state’s transportation system up to good quality “will pay dividends for the economic future of the state.”

“Roads are critical to our economy; roads are critical to our public safety,” Damon said.