Alabama's Republican Gov. pushes gas tax hike to pay for road improvements
By John Sharp | jsharp@al.com Press-Register
Gulf Shores, AL
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Alabama Gov. Robert Bentley said Friday he believes there could be enough political will in Montgomery to push forward with an increase in state's fuel tax to pay for road and bridge projects.
"I do think the gasoline tax is one tax that will certainly be strongly looked at and I think it will be passed," Bentley said during a speech to coastal Alabama business leaders and politicians in Gulf Shores. "People in this state want good bridges. It will come up in the next session and there is a reasonably good chance it will pass and I'm for it."
Bentley's comments come after an Alabama state House committee voted in August to approve a hike in the state's approximately 21 cents-per-gallon gas tax by 5 cents.
The increase would have raised an estimated $70 million in fiscal year 2016.
The new fuel levy, had it been approved by the full legislature, would have been collected on top of the federal 18.4-cents-per-gallon gas tax that is charged to drivers throughout the nation and set aside into the Highway Trust Fund.
But the state tax increase stalled as the legislature dealt with other revenue sources to focus on patching a $200 million budget deficit. Among the increases lawmakers approved in September was a 25 cents-a-pack tax hike on cigarettes.
Bentley, speaking to the media after his speech, said he predicts lawmakers will have an appetite for a hike in fuel taxes as long as revenues go toward road and bridge projects. "I think most people really are willing to pay for better roads, I really do," Bentley said. "I think the people of the state understand if we are going to have new and better roads, we have to pay for them."
Alabama is just the latest state to consider a gas tax increase at a time when federal transportation funding has been uncertain. The U.S. House and Senate are working on a final agreement on a six-year federal transportation plan that would infuse $365 billion into improving the nation's roads and bridges. If signed into law, it would be the first long-term transportation plan approved in a decade.
States such as Georgia and Nebraska approved increases to their gas taxes earlier this summer. Other states have made similar moves to press ahead with programs to address much-needed fixes to aging infrastructure.
"We are struggling with a federal highway bill and in that federal bill (if it gets approved), you may get $100 million this year but may not get anything next year," said state Rep. Randy Davis, R-Daphne.
The national gas tax has been the revenue source for transportation funding since its inception in the 1930s, but the federal gas tax hasn't been increased since 1993. At the same time, improvements in auto fuel efficiency has reduced the amount of money the tax generates.
"We are paying less tax now than 20 years ago," Bentley said.
Davis said the timing could be right for the legislature to move forward with the tax increase. Fuel prices continue to plummet, with the average gallon of gasoline in the U.S. at around $2.20 per gallon, and even lower in parts of Alabama. It's the lowest gasoline prices have been since 2004.
Davis said a range of tax increases could be looked at. Bentley said he was unsure on the increase amount.
"Our bridges are in deplorable shape," Davis said. "The cost of road building is up. We think this is a time to look at it and be proactive about it."
State Rep. Alan Baker, R-Brewton, said he believes a gas tax could be less controversial than any other revenue enhancer.
"I think the citizens do, maybe, accept a road tax with more palatability than most taxes that have been presented in the past," Baker said.
State Rep. Harry Shiver, R-Stockton, said he's unsure the legislature will be open to approve any kind of tax increase. It takes two-thirds of lawmakers to approve a tax increase.
"The Senate is just so hard to figure out," Shiver said, adding, "While the gas prices are low now, it might be a good time to do it. I don't know. We'll have to look at it."