Special Session To Stabilize Gas Tax Component

West Virginians for Better Transportation held its first statewide conference Nov. 10, 2009 in Beckley, W.Va., and nearly 170 people from across the state filled the meeting center to capacity.  The conference, the 2009 West Virginia Transportation Conference, featured prominent officials and others who discussed the current and future funding challenges facing roads, bridges and highways.  West Virginia Paving was the Conference Sponsor.

The conference provided the attendees with updates on the state’s transportation plans as well as information regarding the outlook for state and federal funding.  Among the conference speakers were Congressman Nick Rahall, Governor Joe Manchin and W.Va. DOT Secretary Paul Mattox. In addition, key state legislative leaders provided their perspectives on West Virginia’s transportation needs.

The two main items of focus during the conference were news that the state’s transportation revenues are starting to decline, and that Congress is struggling with approval of a new federal highway funding plan.  Both pose significant new challenges for maintaining or expanding the state’s road, bridge and highway system.

Governor Manchin said he recognizes that more needs to be done in the area of transportation, but noted that “money is getting scarce.”  Manchin told the conference attendees that he doesn’t think the state can expect to rely solely on gasoline and privilege taxes in the future, and that “we have to find another funding source.”  He asked the conference attendees to help identify new, creative funding scenarios.

Paul Mattox, Secretary of the W.Va. Department of Transportation, echoed the governor’s views about new and additional funding sources.  Secretary Mattox also noted that recent commodity prices hikes are further straining the state’s efforts to maintain the existing infrastructure and to meet new transportation needs.

The chairmen of the two respective Finance Committees in the West Virginia Legislature indicated that their members likely will support “stabilizing” the state Road Fund by changing a variable component that currently affects the state’s wholesale gasoline tax.  Each year the state is required to make an annual adjustment to the wholesale gasoline tax, and this January it is expected that this will result in a decrease.  That will be avoided if lawmakers take action.  The chairmen, Senate Finance Chair Walt Helmick and House Finance Chair Harry Keith White, told conference attendees that they expect Governor Manchin to call a special session soon to address this issue.  Otherwise, the state Road Fund stands to lose $50 million starting January 1, 2010.

Congressman Nick Rahall, who is Vice Chairman of the powerful U.S. House Committee on Transportation and Infrastructure, said Congress must act now to enact a new long-term highway funding program.  “The best second stimulus we can have is reauthorization of the federal highway funding program,” Rahall stated.  However, he said the U.S. House and U.S. Senate have major disagreements and differences about how to pay for the nation's transportation needs.  Congressman Rahall said, like the Governor, he is uneasy about continued reliance on a gas-tax methodology for transportation funding and that he is open to all options of new funding sources.

“This conference provided a timely opportunity to discuss these issues and to allow several of our leaders to share their views,” said Joe Deneault, Chairman of West Virginians for Better Transportation. “All WVBT coalition supporters and community leaders need to continue the education effort that something must be done so our state has a safe and efficient transportation system.”

2009 Transportation Conference Sponsors

Conference Sponsor:

West Virginia Paving

Gold Hosts:

HDR

Vecellio & Grogan

West Virginia Motor Truck Association

Silver Hosts:

Brown Edwards & Company, PLLC

RPM Engineers

Thrasher Engineering

West Virginia Chamber of Commerce

Bronze Hosts:

Boxley

Highway Safety, Inc.

KCI Technologies, Inc.

Congressman Rahall Shares Views

On Transportation, Funding

West Virginians for Better Transportation has asked each member of West Virginia’s congressional delegation to provide their views about the challenges facing our transportation system and the outlook for federal transportation funding.  Each was given four questions to answer (see below).  Provided are the answers from Congressman Nick Rahall, who represents West Virginia’s Third Congressional District.  (Responses from First District Congressman Alan Mollohan and Second District Congresswoman Shelley Moore Capito were provided in previous e-newsletters.)

1. What is the likely timeline for reauthorization of the federal highway program, and what will this next reauthorization mean for West Virginia's transportation needs?

The timeline for passage of a bill to reauthorize the federal highway program is very much up in the air at the moment.  The previous Highway Bill expired on September 30 th of this year.  However, the current programs were extended to December 18 th of this year.  If the Congress cannot pass a full reauthorization bill before December 18 th, another short-term extension of current law is likely.

I have strongly advocated for passage of a new Highway Bill as soon as possible. States need the certainty that comes with a five-year bill, instead of a short-term extension.  They need the certainty that comes with a long-term bill so they can set long-term construction projects in motion and budget for the State share of these projects.

Unfortunately, mostly due to concerns regarding how to pay for a new bill, some Members of the House and Senate and the Administration are pushing for an 18-month extension of current law.  I will continue to work as hard as I can to get a new Highway Bill passed as soon as possible, but there is very little certainty regarding a time-frame for passage.

2. What recommendations do you have to meet the growing needs related to maintaining and expanding the nation's highway and bridge infrastructure?

My answer is twofold.  First, we need to pass a new Highway Bill as soon as possible.  Second, building new roads costs money.  The major roadblock to passing reauthorization is how to pay for it. 

The current system is based mostly on a fuel tax that goes into the Highway Trust Fund.  Due to the economy, vehicles getting better gas mileage, and people driving less and conserving fuel, the level of funding generated from the current gas tax simply is not enough to cover the costs of our Nation’s highway needs.  We are in the unenviable position of having to figure out a way to generate more revenue in order to pay for our pressing transportation needs.

3. A recent study notes that West Virginia is facing a $5 billion transportation funding shortfall over the next ten years. What can be done to resolve this?

Passage of a new Highway Bill should help to address at least some of the shortfall.   We could look at expanding the private public partnerships, like the State has employed on the King Coal Highway with appropriate safety and labor provision guaranteed. In addition, the State of West Virginia received more than $200 million that the federal government provided the State through the American Recovery and Reinvestment Act. 

Highway funding revenues are down at all levels of government, and it is imperative that everyone assumes some of the responsibility and finds additional ways to raise the necessary revenues to pay for these much-needed infrastructure projects.

4. What other recommendations do you have about the current and future situation regarding surface transportation (roads, bridges and highways)?

I believe that everyone involved in transportation planning and funding, from the federal government to local communities, needs to increase research and couple development with transportation design in other words, smart construction.  Intelligent transportation systems and integration of intermodalism are both opportunities to cut costs over time and to increase productivity of transportation systems. 

Groups like West Virginians for Better Transportation can be helpful in this regard by helping to get the word out about our funding challenges, our transportation needs, and the benefits of an up-to-date highway system that enables economic growth.

Help Support WVBT’s Ongoing Efforts

Now more than ever WVBT needs financial support from coalition partners and companies. If your organization or company would like to help sustain the coalition’s ongoing campaign or would like to get more informa tion about West Virginians for Better Transportation, please send an email to info@keepwvmoving.org . Someone would be happy to contact you.