Last week we received the news that state government has been so successful in its efforts to raise tax revenue to fund services that we actually have a surplus on hand. A recent financial analysis found that General Fund revenues for this year are exceeding expectations by up to $55 million on three major lines: sales taxes, income taxes and corporate income taxes.

One of the last issues dealt with prior to our recessing at the end of April, and one of the first and most contentious issues the 122nd Legislature will tackle when we reconvene on May 22, is how to fund more than 100 long-scheduled yet recently delayed road and bridge projects.

Discussions at the end of April centered on two options, neither of which seemed to garner the support of a clear majority. The option that has garnered the most headlines, if not the most support, is the amendment to the supplemental highway budget offered by Sen. Ken Gagnon.

Gagnon’s plan is to borrow $60 million against future federal highway dollars, known as a GARVEE Bond (Grant Anticipation Revenue Vehicle), while temporarily suspending the automatic, annual gas tax index scheduled for July.

The other option is to simply respect the original agreement among the House and Senate leadership and pass the supplemental highway budget without any borrowing.

The recently discovered surplus offers us a third, and I would argue a more realistic, common sense solution. We should direct the administration to recognize and transfer $40 million of the expected surplus directly to the Highway Fund.

This action, coupled with the $30.8 million already earmarked for roads and bridges ($15 million from the General Fund and $15.8 million from the Highway Fund), would enable the Legislature to provide an additional $70.8 million for the current needs for highway and bridge projects.

This proposal (let’s call it the “Logical Plan”) protects future federal highway money by not tapping the GARVEE Bond. An additional benefit to employing this option would be an immediate infusion of $70.8 million to be put to work this year. Under Gagnon’s plan, the GARVEE funds would not be available for issuance until June 2007.

Furthermore, the “Logical Plan” avoids the steep $24 million price tag in interest that it would cost to borrow against the anticipated monies. And finally, this plan puts cash surplus to work immediately on capital projects, rather than letting it disappear into ongoing programs.

Likely these are the same ongoing programs responsible for the original disappearance of dedicated Highway Fund money which led to the deterioration of our roads and bridges in the first place.

The 122nd can resolve this on our watch, on our way out the door. When session finally concludes we can each get into our cars and head out with confidence that we governed your money responsibly.

We will also be assured that our front ends may cost less to keep aligned in the coming months.

This commentary was written by Sen. Richard Rosen, R-Hancock-Penobscot, District 31, which includes Brewer and Bucksport.