Gas tax, miles-driven fee considered for Nebraska highway funding

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The needs are great.

The money isn't.

Nebraska highway commissioners heard Friday that money to maintain highways and build roads is at best flat, and traditional funding sources -- gas taxes, for example -- are dropping because fuel consumption is going down. More cars are becoming fuel-efficient; driving habits are changing.

But don't write off the gas tax yet, said Steve Maraman, Department of Roads finance administrator. Even though it's reaching a point of diminishing returns, it's not going away.

Commissioners acknowledged, however, that few state senators seem to have the political will to raise the gas tax -- 23 senators could be up for re-election next year.

In 2000, the variable portion of the state gas tax was 24 cents. This year, it is 26.4.

Statewide hearings in September and October by the Legislature's Transportation and Telecommunications Committee gathered a number of ideas for highway funding options.

The ideas included increases in the gas tax and/or vehicle registration fees; bonding, along with additional funding sources to pay off the bonds; tolls; and food or soda taxes.

Ultimately, Maraman said, Congress and the states will have to supplement the gas tax.

One idea that's been floated nationally is the miles-traveled fee. And it came up Friday at the Nebraska Highway Commission meeting.

Oregon has tested the method of determining the fee by use of a global positioning system and relaying to a gas pump the number of miles a vehicle traveled since the last fill-up.

Such a change would cost millions up front. But it could happen in the next five to 10 years, Maraman said.

Whatever the funding source, it must be something that can be adjusted for inflation, he said. Inflation on construction costs -- particularly asphalt, concrete and steel -- is hurting the state badly.

Commissioner Rodney Vandeberg said he'd like to see a blue ribbon committee appointed to study the future of funding for roads projects.

"If we sit here asleep at the switch ... we're going to have dire problems in the future," Vandeberg said.

Commissioner Dick Reiser said it's tough to sell these alternative ideas when there's no perception of an emergency.

"We have 10,000 miles of state highways and they are good roads," he said.

But if the state waits until the roads are bad, it's going to be too late, he said.

Reach JoAnne Young at 473-7228 or jyoung@journalstar.com.

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