Road construction funding revs up

A campaign unofficially began Thursday to drum up more money — possibly through bonds repaid with increased vehicle registration fees or gas taxes — to address the shrinking pot of funds available to maintain and build highways in Nebraska.

It doesn't have a snazzy name yet, like “Build the Roads and They Will Come,” but bet on hearing a lot in the coming months about how the state has bad roads and no money to fix them.

Nearly 300 people filled an Omaha meeting room for a daylong conference on Nebraska transportation funding.

Missouri and Kansas officials told the group that even in bad economic times, residents supported increased funding for roads if they were given a specific plan and were convinced that it would prevent a crisis of rutted concrete, substandard bridges and unfilled potholes.

Kansas lawmakers, for instance, passed an $8.2 billion road improvement program this past spring. The “T-Works” program included a 0.4-cent state sales tax increase and a $100 increase in fees on heavy trucks — which do the most damage to highways — to finance construction bonds.

Kansas taxpayers and legislators were willing to stomach such tax increases, an official said, after a public relations campaign that promised 175,000 construction-related jobs over 10 years, increased safety and road projects that would provide the biggest bang for the economic development buck.

“You've got all the elements to pull something like that together (here),” said Julie Lorenz, public affairs director for Kansas' Department of Transportation.

She was preaching to the choir.

Filling the room at the downtown Embassy Suites were contractors and engineers worried about whether jobs will still be around when federal stimulus funds run out and as state gas tax receipts continue to fall because vehicles have become more fuel-efficient.

Dozens of state, city and county officials from Nebraska, including nearly 30 state senators, also attended. They expressed concerns about a lack of money to complete construction projects already on the books, including a state expressway plan passed in 1988, and future highway needs such as bypass roads around Omaha and Lincoln.

Speakers used words like “dire” and “dilemma” to describe Nebraska's current financial situation when it comes to road building, even though 83 percent of state roads are rated as being in good condition.

This fiscal year, the state expects to spend $316 million on highway maintenance and construction, which is nearly $80 million less than five years ago. And federal funds, officials were told Thursday, are uncertain and are not expected to rise.

Speakers and those in attendance offered several possible solutions.

Most involved raising the state gas tax, which provides 68 percent of state roads funding, or raising registration fees on heavy trucks or other motor vehicles.

Almost all spoke in support of doing what Kansas, Missouri and several states do: Borrow money through multimillion-dollar bond issues.

That would be a novel approach in Nebraska, which has relied on a “pay-as-you-go” system for road projects and has avoided taking on such debt.

Some in the room questioned whether the state would be willing to seek increased revenue when the economy is still hurting and a $751 million budget gap looms. Some also wondered whether Gov. Dave Heineman, who opposes tax increases, would go along.

But State Sen. Deb Fischer of Valentine, chairwoman of the legislative committee that deals with roads, said the time for action is now, not after roads slip into disrepair.

“Infrastructure is a responsibility of government, and I think it's time we stepped up,” Fischer said. “It should be a priority. I think we're going to get something done.”

Fischer, a self-described Sand Hills “cowgirl” known for her tenacity in rounding up legislative votes, is driving the bus in the pursuit of more road construction funds.

She has been working on the issue for the past four years. Last year, her committee conducted a series of meetings across the state to explain Nebraska's road-building woes and seek funding ideas. People told the committee that they would be willing to pay higher taxes or fees for better roads.

Fischer also has family history in highway building: Her late father, G.C. Strobel, was a Nebraska roads director.

The senator has said previously that she is developing a “bold” plan to reverse the decline in road-building funds.

She said she has a preliminary draft of a bill ready for the 2011 session, which begins in January. She declined again Thursday to reveal any specifics, other than to say that bonds and possibly a small fee increase would be part of it.

“I'm not being coy,” Fischer said. “I don't want to put something out and have it torn apart before I know if there's support for it.”

Other state senators in attendance said issuing bonds will have to be part of the solution. But the big debate, they said, will be how to pay off such debts.

An official of the U.S. Chamber of Commerce who lobbies Congress on transportation issues told the gathering that industry officials, Nebraska senators and local business groups need to mount a campaign to sell a road funding plan, one that names specific projects.

“It's not enough to sit in this room with the true believers,” said Jane Kavinoky, the chamber official. “You've got to treat this like it's a life-or-death issue.”

Contact the writer: 402-473-9584, paul.hammel@owh.com

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