Lobbying Group unveils plan to improve roads, bridges - gas tax increase among options
By Bobby Harrison
Daily Journal Jackson Bureau
JACKSON, MS
The Mississippi Economic Council unveiled “Excelerate Mississippi” on Friday – a proposal to increase spending $375 million per year to address what it says are the state’s dire and growing infrastructure needs.
Joe Frank Sanderson, chairman of Laurel-based Sanderson Farms and chair of the MEC task force that studied the issue, said the longer the state waits to deal with its infrastructure needs, the costlier solving the problem will be.
“Roads across our state are beginning to crumble,” Sanderson said Friday at a Jackson hotel where the program was unveiled before the media and business leaders. “Bridges aren’t safe. This is happening on our state-owned system – as well as with our local roads and bridges.”
MEC began studying the issue in June 2014 and is presenting its findings in time for them to be considered by the 2016 Legislature.
The study identifies numerous revenue streams to pay for the proposal. The options center around increasing the tax on motor fuel, vehicle registration fees and numerous other proposals designed to tax road use.
Sanderson said the goal of MEC was to determine whether there were needs, offer a plan to address the needs and offer options to fund the plan. He said “it would be presumptuous” to try to tell the Legislature how to pay for it.
Thus far, legislators seem to be more focused on cutting taxes – particularly for businesses – than raising taxes for infrastructure needs. Both Gov. Phil Bryant and Lt. Gov. Tate Reeves have voiced support for a tax cut for business.
“I appreciate the Mississippi Economic Council taking a thorough look at the state’s transportation infrastructure and starting the process of identifying solutions to the problems in the system,” Bryant said in a statement on Friday. “I look forward to working with the MEC, the Legislature and other stakeholders as we continue the process of upgrading and modernizing our roads and bridges. As I’ve said before, any tax increase must be offset by corresponding tax cuts.”
Of the proposal, Reeves said, “I really appreciate the members of MEC’s task force for their hard work studying these important infrastructure issues in our state. I plan to review the committee’s findings and suggestions over the next several weeks.”
Sanderson speculated that the Excelerate Mississippi program could be part of a package that cut business and personal income taxes, as the legislative leadership tried last year unsuccessfully to do, while raising taxes for infrastructure.
“You could come up with a net tax decrease,” Sanderson said.
When asked if such a program might shift more of the tax burden away from wealthy business interests and to the poor and middle class, Sanderson reasoned efforts would be made to ensure the program is fair.
Under the program, $300 million annually would go toward state-owned road and bridge needs, while $70 million would be dedicated to municipal and county infrastructure problems.
Scott Waller, executive vice president of MEC, said the program would:
• Replace 138 state bridges that can no longer carry the weight they were designed to carry.
• Replace all timber bridges.
• Replace another 424 deficient bridges over a 10-year period.
• Allow the Department of Transportation to greatly enhance its maintenance program.
• Help local officials with their infrastructure needs.
MEC is trying to duplicate the success of the 1987 AHEAD Program that led to a tax increase to four-lane more than 1,000 miles of highway. That program advocated by business leaders and legislative leaders, such as Reps. John David Pennebaker of New Albany and Billy McCoy of Rienzi, has been credited for helping the state economically.
“As I drive across our state today, I see first-hand that we are on the verge of losing our competitive edge,” Sanderson said.
“The massive investment that was made in our state’s transportation system as a result of the 1987 AHEAD program will be lost.”
The MEC study and others have concluded that the 18.4 cent per gallon tax on motor fuel no longer produces enough revenue to pay for the growing and costlier infrastructure needs.
MEC worked with researchers at the University of Southern Mississippi and Mississippi State University and other private consultants in developing the study.
Blake Wilson, president of the MEC, said the proposal would fall short of paying for all of the state’s needs but would make a significant difference.
“This should be done before anything is done,” said Central District Transportation Commissioner Dick Hall, a Republican, who has long advocated for a tax increase to deal with infrastructure needs. “It is a safety issue and economic development issue.
“This issue should take priority.”
Most legislators thus far have agreed that the issue is important and that all options should be on the table. But with a few exceptions, most have not yet committed to a tax increase to address the issue.
“As a rule, my mantra is no new taxes,” Rep. Mac Huddleston, R-Pontotoc, said recently. But he said sometimes people view a specific tax to address a specific need, such as a fuel tax for road repairs, differently.
“I will have to study what comes up,” he said. “I have learned never to say never.”
Wilson said the program would generate thousands of new construction jobs and, according to polling, the vast majority of the public supports a program to improve infrastructure.
bobby.harrison@journalinc.com
Twitter: @BobbyHarrison9