Senate Focuses on Funding Missouri’s
Transportation Infrastructure

Earlier this session, I briefly described the significant funding shortfall Missouri’s Department of Transportation (MoDOT) will soon be facing if left unaddressed. A combination of factors has led to MoDOT facing a mere $325 million budget for Fiscal Year 2017—millions shy of the minimum the department needs to draw down all available federal funds and maintain our state’s transportation infrastructure in its current condition. So how did we get here and what are the options?

Rather than a single problem, a perfect storm of circumstances has led to MoDOT’s funding situation, including: a diminishing fuel tax revenue stream as vehicles have become more fuel efficient; a fuel tax rate that has remained stagnant for nearly 20 years; decreased purchasing power due to inflation; and rising costs of industry staples like asphalt, concrete and steel.

Revenue-generating options such as toll roads, a sales tax increase or a fuel tax increase have all been floated. On the surface, toll roads seem to make a lot of sense: the vehicles creating the most wear and tear on our roads and bridges, namely semi-trucks, pay for the lion’s share of maintenance costs. The problem, of course, is that all costs are eventually returned to the consumer. Just because you may not have to pay a toll fee every day, doesn’t mean you won’t have to pay more for your favorite cereal or the milk you pour on it.

Another option, increasing the state’s sales tax and having it dedicated to Transportation, was rejected by Missouri voters last August. If it had passed, the three-quarters cent sales tax would have raised an estimated $5.4 billion over 10 years, providing local governments with a portion of the revenue and funding more than 800 transportation projects. During last year’s Right to Farm town hall meetings, I heard time and again that although the agriculture industry would not support a sales tax increase, they could get behind a fuel tax increase. This brings us to Senate Bill 540.   

This week, the Senate began debating SB 540, legislation that would raise the motor fuel tax by two cents a gallon (from the current 17 cents to 19 cents), effective January 2016. If passed, the increase is expected to bring in $55 million for MoDOT. While the measure doesn’t provide a long-term solution, it would allow the state to match all of its anticipated federal funds for 2017. In addition, the extra revenue would provide support for our river ports, something that would certainly benefit the 3rd District.

A quick history lesson. In November 1980, Missouri voters approved a constitutional provision, known as the Hancock Amendment, which limits the ability of state and local governments to raise taxes. Then, in 1996, voters again amended Missouri’s Constitution so the Legislature could increase taxes by a small amount each year without voter approval. The current inflation-adjusted cap is around $94 million.

While I don’t relish the idea of increasing taxes without a vote of the people, I also believe there are certain circumstances when it becomes necessary for the General Assembly to exercise its power under the Hancock Amendment in order to provide for the safety of our citizens and the stability of our state’s economy. Ensuring the future of Missouri’s transportation infrastructure, the very means by which so many of our day-to-day lives and livelihoods depend on and are affected by, may be one of those instances.

Despite having the 7th largest highway system in the nation, which is comprised of 34,000 roads and 10,400 bridges, Missouri ranks 46th in the amount of revenue we spend per mile. Unless action is taken, MoDOT will be forced to prioritize the roads and bridges it can maintain, the effects of which will be seen right here in the 3rd District. We’ve reached a critical point where we must find another revenue stream in order to maintain a safe and reliable transportation system.     

From the ambulance responding to an emergency situation in rural Missouri, to the products you buy at the supermarket, to the bridge you cross on your way to work, our transportation system connects us to each other and Missouri’s goods to businesses in neighboring towns, states and beyond. As a matter that personally affects each and every one of us, I’m eager to hear your thoughts and ideas. Whether by email, phone or social media, I encourage you to reach out to my office and provide feedback on MoDOT’s looming funding situation.

Contact Me

I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-4008. You may write me at Gary Romine, Missouri Senate, State Capitol, Jefferson City, MO 65101; or email me at gary.romine@senate.mo.gov; or www.senate.mo.gov/romine.

Sen. Romine’s Sponsored Legislation for 2015