By Stuart Adams
Utah State Senator, District 22
I have really appreciated the support for SB 229. Many people have been involved in trying to find middle ground with the Governor. Many different approaches and ideas have been suggested with no success. I wanted to share some of my thoughts so citizens will understand why I feel strongly about this piece of legislation.
1. We all are aware of the need for additional transportation funding. The gas tax was 24.5 cents in 1998 when gas was around a dollar and it is still 24.5 cents per gallon as gas approaches 4 dollars a gallon. In comparison, an automobile that sold for $10,000 in 1998 would generate $650 in sales tax revenue. That automobile would perhaps sell now for $20,000 generating $1300 or double the sales tax revenue. While transportation needs and costs increase, there is no inflation adjustment in the gas tax. Using a portion of the sales tax would give us a revenue source that accounts for inflation and allows us to try and solve the cost problem with existing revenues before we consider raising taxes.
2. The transportation commission has been forced to end preventive maintenance on approx. 45% of our state roads. They will continue to patch pot holes but will not do preventive maintenance. To repair, rather than maintain, costs much more and shifts the burden into the future, setting us up for another structural imbalance.
3. Utahns are impacted every day by transportation projects now on hold because they are unfunded, including the following:
I-15 from 123rd South to Lehi
Mt. View Corridor extension
East-West roads in Salt Lake County
Bangerter Highway interchange improvements
US 6 from Spanish Fork to I-70
US 40 from Park City to Vernal
The Southern Parkway in Washington County
10th West in Logan
West Riverdale Road in Ogden
24th Street interchange in Ogden
West Davis Corridor
I-15 expansion North Salt Lake to 31st Street in Ogden
I-15 interchange at the Logan turn off
I-15 extension Spanish Fork to Payson
Southern Parkway in St. George, Warner to Washington Dam and I-15 to Telegraph Road
SR-18 – St. George Blvd to Red Hills Parkway
4. Mobility and infrastructure are key factors that facilitate economic development. If I-15 through downtown Salt Lake had not been widened from 3 lanes to 5-6 lanes the state would not have experienced the economic expansion that occurred over the last decade. SB 229 continues this vision and commitment to economic development.
5. SB 229 does not reduce or effect any current program. It allocates 30% of the NEW growth in sales tax (until it caps out at 17% of total sales tax revenue) into the TIF (Transportation Investment Fund).
6. This fund has had a dual use over the years. The primary use, of course, is to fund transportation needs. The secondary use has been to help balance our budget. This is the first source of money we use in an economic downturn to save other state programs. We have done this in 2003, 2004, 2005, 2006, 2007, 2009, 2010 and 2011. This fund has historically been an additional rainy day fund.
7. We have continually been rated #1 in the nation for our fiscal policies. We need to continue to have the tools we deem necessary as a legislature to maintain our financial stability. Taking money off the table very much like we did with the preliminary 7.5% reduction in base budgets this year forces us to first look within.
8. It is natural for executive branches to reject legislative efforts to restrain growth. They tend to do whatever possible to continue to spend and grow the existing state programs. To balance this, the legislative branch has the constitutional responsibility to appropriate the funds the executive branch spends. This responsibility needs to remain independent regardless of the Executive Branch’s efforts to try and control the appropriation process by the use of a veto.

Senator Adams: Why Utah needs SB 229




[...] 1. Senator Stuart Adams, sponsor of SB 229, has posted comments on the Senate Site: http://www.senatesite.com/home/sb229/ [...]
[...] 1. Senator Stuart Adams, sponsor of SB 229, has posted comments on the Senate Site:http://www.senatesite.com/home/sb229/ [...]
[...] # # # NOTES: 1. Senator Stuart Adams, sponsor of SB 229, has posted comments on the Senate Site: http://www.senatesite.com/home/sb229/ 2. Representative Brad Dee, the House sponsor of SB 229, will also post comments on the House of [...]
[...] inveigles against it. http://bit.ly/gwPyac Sens. Adams and Urquhart and Rep. Dee speak for it. http://www.senatesite.com/home/sb229/ and http://www.steveu.com/blog/2011/04/the-veto-override-session/ and [...]
[...] Senator Stuart Adams: Why Utah Needs SB 229 [...]
First of all, yes, we all are aware of the need for additional transportation funding, and you (Senator Adams) have reminded us that the gas tax was 24.5 cents in 1998 when gas was around a dollar and it is still 24.5 cents per gallon as gas approaches 4 dollars a gallon. Also that, while transportation needs and costs increase, there is no inflation adjustment in the gas tax.
Rather than earmark what should be general funding from state sales taxes, why not place the burden exactly where it belongs and PUT an inflation adjustment in the gas tax?
Perhaps somebody needs to be courageous enough to address that issue to the extent of actually doing something about it, popular or not. Perhaps it will be Senator Adams.
Secondly, committing 30% of all sales tax increases to a road tax makes that portion of the tax unavailable for anything else. NONE of that 30% could be used for schools, for instance, or any other statewide needs. That 30% is reserved for roads.
And why? Because it may not be popular to increase the gas tax.
Third, earmarking is generally bad policy for any government, a fact which we could spend pages talking about but which has become an accepted political fact having to do with what some of us call “pork.” Dedicating said pork to the state roads budget, regardless of the fact that the state may not need quite that much and will need to find ways o spend it is simply ludicrous because it restricts the state’s ability to do other things with that money.
Fourth, speaking of which, passage of this bill restricts the state’s ability AND the legislature’s ability to to anything else with that money.
Fifth, and perhaps most importantly, transportation funding is not at risk. UDOT is the ONLY state agency whose funding has grown through the recession while all other agencies budgets have been reduced.
Please, Senator Adams, in spite of (perhaps even because of) the fact that you personally have business and financial interests vested in the passage of this bill, please consider withdrawing your support for or at least abstaining from casting a vote on this onerous bill.
Passage of this bill was wrong in the first place, is wrong now, and the governor’s veto should NOT be overridden.
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