WCAX.COM Local Vermont News, Weather and Sports-Raise Gas Tax to Fix Vt. Bridges?

Raise Gas Tax to Fix Vt. Bridges?

Prices at the pump have been on their way down. But a new proposal would add five cents to each gallon of gasoline and diesel fuel.

The state treasurer wants to increase the gas tax to pay for improvements to bridges.

"I think the people in Vermont are ready for some frank talk," Jeb Spaulding said, "and the truth of the matter is bridges are not in good shape and are getting worse."

Spaulding says current revenue sources aren't enough to pay for the needed repairs. Adding five cents to the current gas tax of 20 cents would raise $20 million a year. That could leverage bonds of $150 million to pay for bridge work. It would be the first increase in the gas tax since 1997.

"My interest as treasurer, particularly at this time when we're looking to provide some stimulus to the economy, is if we can take advantage of lower interest rates, lower commodity costs like materials costs, and contractors that are looking for work so hopefully they'll give us a good competitive bid," Spaulding said. "It makes sense to move forward on this infrastructure need now."

But the Douglas administration says raising the tax would hurt Vermonters already struggling to make ends meet, especially families who travel in larger vehicles and businesses that use trucks. Transportation Secretary David Dill says an increased gas tax would hit those people every time they filled up their gas tanks.

"I don't think there's anyone who would disagree that we need more investment in bridges," he said. "I certainly agree as well. The issue is going to be the mechanism -- what mechanism and how much."

Dill said other options besides the gas tax are on the table. One example is an increase in one-time fees, such as car registrations and truck permits, that would be tied to the rise in the consumer price index.

"It's been three years since fees have been increased," he said. "It's certainly fair, I think, to look at a CPI increase in fees. Last time we did this it raised over $10 million."

Raising more money for bridges -- whether with a tax or fees or any other option -- would require approval from the state legislature.

Kate Duffy - WCAX News