Carona weighs in on the gas tax
I am posting on the main page of the blog this e-mail that I just received from Senator John Carona, chairman of the Senate committee on Transportation and Homeland Security, in response to my suggestion that the state gasoline tax should be increased by 50%.
Look, folks. Paul Burka is right on this one. As Chairman of the Senate Committee on Transportation and Homeland Security, I can attest that the only near-term answer to the transportation funding dilemma we are facing is to raise and index the gas tax. Stopping the diversion of gas tax revenues for other legislative purposes, as is long overdue, will not alone solve the problem.
Calls from naysayers indicating that the tax would have to be raised to $1.50/gal are ill-informed. The Governor’s Business Council, a blue ribbon panel of Perry invitees, told the Legislature over three years ago that the shortage of roadway dollars (estimated then at $60-90 billion dollars, depending upon whomever you believe) could be corrected by a modest (ten cents per gallon) gas tax increase, indexed to annual inflation in highway construction costs, and then bonded against. Those who speak otherwise share misinformation and are sending us into a massive network of privately-operated toll roads which will cost the average driver exponentially more than simply raising the gas tax.
The motor fuels (gas) tax is a credible source of transportation funding for at least the next 20 years. Based upon careful study, it is by far the most fiscally conservative way to build our Texas roads. The persons who most often criticize it are politicians doing their level best to avoid any sort of “tax increase” on their political record. Where, fellow drivers, is the statesmanship in that?
Tagged: gas tax, senator john carona
paulburka says:
I am taking the liberty of moving a comment from one post (“Raise the gasoline tax?”) to this one.
“Not a state senator” says:
first, let me take a cheap shot at Sen. Carona. Where, Senator, is the statesmanship in holding the transportation bill hostage-basically holding your breath like a toddler until you get your way, despite almost unanimous opposition to the local-option-tax-increase?
back to your contentions, which I disagree with. yes, an immediate gas tax increase would fund a little bit of maintenance (and maybe a little bit of construction for new roads). would it provide more dollars than private investment? absolutely not.
publicly-funded roads will always be started and completed later than public-private partnerships, which have companies risking capital on a guaranteed return–they’re eager to start and eager to see the return. private funding is not subject to such a drastic loss in capital due to fuel economy. private investment IS subject to construction cost inflation but not subject to the highly volatile indexing of the fuel tax.
it’s the time-honored debate: does the government build things faster and better…or does the tradesman risking his capital and reputation build things faster and better?
* * * *
My comment: There is more to the time-honored debate, which is whether we want the private sector determining how much Texans will pay to drive on the state’s roads, without oversight, or the public sector, which is subject to legislative oversight? Anyone who has followed the toll road debate knows that the cost of paying tolls in the out years far exceeds the cost of motor fuels taxes. Those tolls will not be used to build more roads; rather, they will go straight to the bottom line of the toll road operator. Toll roads are a way of forcing our grandchildren pay through the nose, thirty and forty years from now, while today’s voters get to use them on the cheap.
Reply »
Anonymous Reply:
October 21st, 2009 at 8:20 pm
Paul,
on your comment above, when you condemn toll roads as more expensive than gas-tax supported roads, you must make the distinction between concession-owned and operated roads and public-private partnership created roads. It is absolutely feasible — not necessarily what TxDoT has done mind you — to finance, design and construct a publicly owned and operated toll road cheaper (and faster) than a road constructed entirely from gas tax revenues. Absolutely. Has txdot had an honest conversation and evaluation of these? hell no.
Reply »
Rumble Strip Reply:
October 21st, 2009 at 9:11 pm
Mr. Burka: Can you please stop cheapening the discussion with patently false statements? Every time you wade into transportation financing your credibility is further diminished by repeating outright fallacies. At the very least it shows you don’t do your homework.
Burka: “… whether we want the private sector determining how much Texans will pay to drive on the state’s roads, without oversight…”
There is absolutely no truth whatsoever to that statement. None. All agreements are executed in public between the private sector and a tolling agency, including the concession rate schedules, and by a voting body. Any adjustments require a vote of the governing body, whether it’s the Texas Transportation Commission, a regional mobility authority, a county toll road authority, or a regional toll road agency.
Burka: “Those tolls will not be used to build more roads; rather, they will go straight to the bottom line of the toll road operator.”
Again, this is another patently false statement. What happens to revenue above a certain point is predetermined by the sponsoring agency and the affected region. If revenue goes beyond projections then it is split between the concessionaire and the region to build more infrastructure. And that agreement is made in public.
Burka: “Toll roads are a way of forcing our grandchildren (to) pay through the nose, thirty and forty years from now, while today’s voters get to use them on the cheap.”
Hard to say if that’s true or false because no one will remember to look back at this blog to verify it. But why say that only about toll roads? Putting the state in general obligation debt now to pay for roads doesn’t saddle future generations with the costs? Indexing the gas tax and issuing debt doesn’t? You have no idea whatsoever what cheap or expensive will look like in 30 or 40 years from now. Thirty or forty years ago I suspect that the price of gasoline and the gas tax looked a lot cheaper than it does today.
I am having a very difficult time believing you’re an honest broker of information and ideas in this discussion.
Reply »
Anonymous says:
There’s a justifiable debate about what things government does better and what things the private sector does better. The problem in the present political climate – especially in Texas – is that there’s no debate. All those in places of sufficient authority to make a choice choose the private sector every time = not because it’s the better choice, but because it’s the politically expedient thing to do. Which is exactly where Sen. Carona’s “statesman” comment fits in. Texas has no “statesmen” in the positions that make all the difference in state government (Guv, Lite Guv, etc.), as well as our U.S. Senators.
Reply »
anonymouse says:
how about a hot air tax?
that’ll cure all our economic ills.
Reply »
Anonymous says:
I’d rather pay ten cents a gallon more than $10 in a day’s worth of tolls. Everyone who commutes for a living will gladly pay it because they know first hand the need. The rest need to understand that we could lose a lot more than Dell if we don’t take care of our infrastructure.
Reply »
Anonymous Reply:
October 21st, 2009 at 8:23 pm
Dell supported the development of SH 130 and SH 45 as well as pays significant tolls on SH 130 (southbound) although I am not currently familiar with their use of the road.
Reply »
Lo Rida says:
Paul, after being absent from your blog for a while can you tell us where Perry and Hutchison stand on gas tax, indexing to inflation and privately built roads? thanks.
Reply »
Pat says:
Three cheers Sen. John Carona. Like Burka once wrote about Straus, he too could be the man to build a mainstream Republican coalition and keep the party in power through the 2010s.
Here’s to hoping he’s our Lite Guv someday.
Reply »
Stevie F. says:
Money doesn’t fall from the skies and Texas roads need some help. Tolls create massive transaction costs and spawn other problems. We need to discuss all the options and quit expecting an easy answer.
I appreciate the Senator showing some statesmanship and treating the readers here like adults.
Reply »
John Johnson says:
Sen. Carona was the voice of reason last session, and has always appeared to work well with Dem’s in moving important issues forward. He’s not a trunk to tail Repub and does not kowtow to the gov or lt. gov. He is also one of the few politicians with the cajones to tell us that taxes will be needed to pay for an expanded and repaired highway system. He deserves our respect.
Reply »
Anonymous says:
Paul:
The debate should not be centered around whether the state should increase (and index) the current gas tax; but rather the legislature should be discussing replacing the current gallon based tax with one based on mileage. I think the senator has some “wishful” thinking with his statement the current gas tax could be a credible source of transportation funding. Car makers will continue to increase the MPG on new cars (they have to per federal requirements) so older cars will be paying a disproportionate share of the gas tax than newer cars just because their MPG is not as good. Can you (or the senator) tell me how a hybrid vehicle causes less wear and tear on our roads than a regular vehicle. They don’t!…..
The legislature needs to start thinking in a forward manner and stop using an old tax structure in a 21st century Texas.
Reply »
Fiftycal Reply:
October 21st, 2009 at 9:48 pm
No tanks. I don’t trust the STATE or the FEDS with putting a GPS on my car to “see” how many miles I have driven. Or where I’ve driven. Or when. Because then they will ask WHY. And it’s none of their business. Especially with the current regime in Austin doing it’s best to seize every bit of power it can think of.
Reply »
Adrian Juarez says:
I like Sen. Carona, but I doubt he would be so “bi-partisan” (republican-lite)had senate district 16 not have become so Democratic. (If I have my information correct, the head of the Dallas Co. Democrats, lives there!)
Heres to a bright future for senate district 16, with a Democrat state senator!
Reply »
Fiftycal says:
OK, I’ll sign onto a gas tax increase, tied to inflation. IF you FIRST end the looting of the gas tax fund, the hunting license fund and EVERY OTHER DEDICATED money in the state. Then use the moneys collected to BUY BACK EVERY toll road before another mile of road is built.
Reply »
South Texan says:
Senator Carona undoubtedly is the most respected, must trusted, and most reasonable Republican state senator. He is a refreshing contrast to some of his colleagues who prioritize partisanship above responsibility. His credibility empowers him to be the state’s leading voice on transportation issues, especially because many senators follow his lead.
Reply »
Texian Politico says:
I don’t like this new font size. Its harder on the eyes than the previous style. Why the change?
Also, are you taking a jab at Sen. Carona and his wweight with your headline? Is this like how Corzine has been saying the same thing about Christie in NJ?
Reply »
Eileen Smith Reply:
October 22nd, 2009 at 10:08 am
It should be bigger now.
Reply »
Hydrogen Jukebox says:
@South Texan, John Johnson, Pat: Sure, Carona’s great. But what do you think about the actual content of the post, specifically, should Texas raise and index the gas tax and will it help address Texas’ woefully inadequate transportation infrastructure funding?
Reply »
John Johnson Reply:
October 23rd, 2009 at 9:11 am
All I know is that money has to be generated somewhere to pay for road repairs and new construction. We either cutback somewhere else or create a new source for money …this is going to be new taxes or fees. I’m for going the tax route.
Reply »
JUICE says:
I am a little leery of indexing the tax to the cost of contruction (as opposed to general inflation?). No one ever questions the assumptions about road contractors’ costs for their labor, materials, etc. – that part of the equation is just accepted as a given. Maybe there are no savings to be found, but it seems that this area ought to be subject to the same scrutiny that every other aspect of state-provided services is.
Reply »
Robert says:
Wow! Burka gets a big-government-is-good RINO to agree with him. What a task!
Reply »
Emeyekaye says:
Legalize medical marihuana in Texas and pay for it with that…
This will also help cut down on the highway traffic of smugglers, not to mention take the legs out from under narco-terrorists and drug cartels throughout the world.
Reply »
Ken Duble says:
My proposition is the 5-10-15 tax. We hike the motor fuels tax a nickle a year for five years, a dime a year for the next 10, and 15 cents a year for the next 15. After 30 years, the state motor fuels tax is $3.50. Even considering federal taxes, gasoline would be cheaper then than it is in some parts of the world today. We would no longer be using gasoline, because we would have long since run out. The higher taxes would incentivize the transition.
Reply »