The Revenue Committee heard testimony Feb. 27 on a bill that would repeal a newly adopted means of funding roads.<\/p>\n
The Legislature passed a measure in 2011 that dedicates 0.25 percent of the state\u2019s 5.5 percent sales tax to fund roads projects starting in fiscal year 2013-14. LB531, introduced by Lincoln Sen. Danielle Conrad, would repeal the sales tax allocation, leaving roads to be funded exclusively by the gas excise tax.<\/p>\n
While she supports highway construction projects, Conrad said, this is not the best way to fund them.<\/p>\n
\u201cDiverting sales tax revenue has many potential unintended consequences,\u201d she said. \u201cEvery time the Legislature makes any changes related to sales tax in the next 20 years, we\u2019ll have to take this into consideration.\u201d<\/p>\n
Jason Hayes, representing the Nebraska State Education Association, supported the bill, saying it would ease the financial burden on essential services.<\/p>\n
\u201cGiven the continued economic uncertainty, this puts both our state budget and our people at risk,\u201d he said. \u201cOur current commitment to public education does not equate to our commitment to our state\u2019s highways.\u201d<\/p>\n
Mark Whitehead, president of the Nebraska Petroleum Marketers and Convenience Store Association, opposed the bill. He said changes in people\u2019s driving habits have made excise tax revenue unreliable.<\/p>\n
\u201cThere is a diminishing return on the excise tax because people aren\u2019t driving as much as they used to,\u201d Whitehead said. \u201cWe need to diversify away from the old formulas.\u201d<\/p>\n
President and CEO of the Norfolk Area Chamber of Commerce Dennis Houston, also opposed the bill.<\/p>\n
\u201cFor the citizens of Norfolk and Madison County, this isn\u2019t just about repairing existing roads,\u201d he said. \u201cIt\u2019s about rural economic development and new job creation.\u201d<\/p>\n
Renee Fry, executive director of the OpenSky Institute, testified in a neutral capacity. She said the importance of good roads to Nebraskans\u2019 prosperity is not in question.<\/p>\n
\u201cWe support adequate investment to repair and build roads,\u201d she said. \u201cHowever, we do have concerns about straying from traditional funding methods when we are already struggling to fund other essential services.\u201d<\/p>\n
The committee took no immediate action on the bill.<\/p>\n","protected":false},"excerpt":{"rendered":"
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