Legislators have launched a war of words over how to fill a shortfall of nearly $1 billion in the budget for transportation.
Although the Department of Transportation submitted a budget request without a tax or fee increase, some legislators argue a tax/fee increase is needed to improve as well as maintain the state’s transportation infrastructure.
According to a study by the Wisconsin Transportation Finance and Policy Commission, the current funding model is not keeping pace with future and current needs which has resulted in a serious funding shortfall and the need to increase bonding – “a path that is unsustainable over the long haul.”
Therefore, the Commission recommends an increase in the tax on motor fuel, a new registration fee based on mileage, higher driver license fees, an increase in registration fees for all commercial vehicles, and the elimination of the sales tax exemption on the value of trade-in vehicles.
Governor Scott Walker joins the discussion with a pledge to veto any transportation related tax or fee increases without a corresponding reduction in other taxes or fees to offset the increase.
Representative Robin Vos (Rochester), Speaker of the Assembly, disagrees with the Governor’s approach, and believes a variety of funding options should be considered. He wants a long-term sustainable solution with “all options on the table.”
Senator Chris Kapenga (Delafield) argues Wisconsin already has one of the highest taxes on motor fuel in the nation. “We don’t have a revenue problem; we have a spending problem. That’s where the focus needs to be, which is why I support Governor Walker’s plan, where taxes are not raised.”
Stay tuned.
The Legislature convenes the 2017-18 Session on January 3, 2017.
Bill G. Smith
State Director
NFIB/Wisconsin
