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State Funding of Transportation

State Funding of Transportation. Tom Howells Wisconsin Motor Carriers Association. History of Indexing. Agreed with Indexing for Years Raids from the Fund Advocated for Repeal Rethinking our Position. Funding Assumptions. Integrity of Fund is key Trucking needs good roads & bridges

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State Funding of Transportation

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  1. State Funding of Transportation Tom Howells Wisconsin Motor Carriers Association

  2. History of Indexing • Agreed with Indexing for Years • Raids from the Fund • Advocated for Repeal • Rethinking our Position

  3. Funding Assumptions • Integrity of Fund is key • Trucking needs good roads & bridges • Willing to pay our fair share • Fuel tax revenues have not kept pace • Truck user fees high in Wisconsin • Opposition to Tolls

  4. Evaluating Funding Alternatives • Cutting expenses & improve efficiency - not just raising additional revenue • Utilizing “transportation user fees” only for transportation programs. • Evaluate the fee alternatives based on:

  5. Collected on a “pay as you go” basis; • Equitable (measures actual use of the system); • Assurances that the funds would be used for transportation; • Revenue source is predictable, providing a consistent flow of revenue; • Avoid unproven revenue sources that places future transportation revenues in jeopardy.

  6. WMCA Preferences • Cents per gallon fuel tax • Indexing of motor fuel tax (if revenue stay in transportation fund) • Registration fees • Third structure taxes such as tolls

  7. Conclusions • Tolls and third structure taxes are to be avoided • Industry needs a good infrastructure • Difficult for legislature to raise taxes • Fuel taxes (even indexed) might be best possible alternative

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