Wednesday, June 22, 2005
Copyright © Las Vegas Review-Journal

CORRECTION, 8/5/05 - A June 22 Review-Journal story about the state Transportation Board's effort to improve highways in Nevada and deal with a possible $2.4 billion future shortfall in funding contained errors. The state wants to widen Interstate 15 from Tropicana Avenue to the Spaghetti Bowl. Nevada residents also now pay up to 53.05 cents per gallon of gasoline in local, state and federal taxes.

TRANSPORTATION BOARD: State eyes tax hikes for roads

Needed projects facing shortfall, officials say

Traffic flows Tuesday at U.S. Highway 95's northbound exit at Lake Mead Parkway. Among the highway projects officials identify as necessary between 2008 and 2014 is the $1.3 billion widening of U.S. 95 between downtown Las Vegas and Henderson. Photo by Craig L. Moran.

CARSON CITY -- Facing a $2.4 billion shortfall in highway construction money, the state Transportation Board voted Tuesday to form a task force to propose tax increases to pay for the pavement.

The vote came after state Transportation Director Jeff Fontaine outlined plans for $5 billion worth of highway projects between 2008 and 2014.

The projects include the $1.9 billion widening of Interstate 15 from the Spaghetti Bowl, in downtown Las Vegas, to Apex and the $1.3 billion widening of U.S. Highway 95 between downtown Las Vegas and Henderson.

The projects are vital to reduce gridlock and support the economy, Fontaine said.

The number of miles driven by trucks alone will increase 85 percent by 2010, he said.

The state will build $1 billion worth of highway projects over the next three years, Fontaine said. But in the following six years, officials can identify only $6.2 billion in revenue for roads versus $8.6 billion in needed construction and maintenance projects, he said.

"We must step up to the plate on how we are going to pay for it," said Gov. Kenny Guinn, who leads the Transportation Board.

Guinn said a task force composed of 15 residents, including members of the state's regional transportation commissions, could generate public support for a tax increase to make up for the shortfall. Members would meet periodically over the next year and make recommendations to the 2007 Legislature.

"Lay it all out, and people will support it," Guinn said.

Nevada Taxpayers Association President Carole Vilardo and Nevada Manufacturers Association Executive Director Ray Bacon said finding revenue to build roads is necessary for the continued success of the economy.

"It is important to the economy, and I know it is not a politically palatable issue to touch," Vilardo said.

"It is a lot of money, but it is necessary," Bacon said. "There are multiple ways to do it. They have to consider more than just the gas tax."

Gasoline taxes were increased five times between 1985 and 1992. Residents pay 52.2 cents per gallon in local, state and federal gasoline taxes, of which 23 cents per gallon is state gasoline tax. Only Hawaiians, with a per-gallon tax of 54 cents, pay more.

The average state gasoline tax, according to the American Petroleum Institute, is 19.1 cents per gallon.

Of the state gasoline tax, 17.65 cents per gallon remains with the Transportation Department, while 5.35 cents per gallon is given to local governments for transportation projects.

Lucille Lusk, legislative lobbyist for Nevada Concerned Citizens, questioned why government wants more money for roads when the state had a $600 million budget surplus.

"Road projects are necessary," she said. "But when is enough enough? Until we decide what is the proper role of government, we will be in this constant turmoil over taxes. We don't agree with the sense that politicians have the right to reach in our pockets for every project they want."

Vilardo said any tax increase proposed by the task force might be more acceptable if the plan requires approval by a vote of the people.

During the 2005 Legislature, lawmakers refused to consider a bill proposed by the Nevada Highway Users Alliance that would have increased the gasoline tax by 2 cents a gallon each year for the next five years. Legislators were concerned about increasing the gasoline tax at a time when gas prices were hitting record levels.

"My feeling is we need to get the ball rolling before it is too late," said John Madole, executive director of the Associated General Contractors, who unsuccessfully tried to win support for the gasoline tax increase during the legislative session.

With the I-15 and U.S. 95 freeway widening projects, Fontaine mentioned six other projects officials do not have sufficient revenue to complete between 2008 and 2014. They include spending $350 million to build a bypass around Boulder City and $264 million to widen I-15 from Tropicana Avenue to Sloan.

Jacob Snow, general manager of the Regional Transportation Commission of Southern Nevada, listed for the board several transportation improvements he said are necessary for the economic future of Las Vegas.

"We can't afford to gridlock Southern Nevada," Snow said. "If we do that, we run the risk of gridlocking the state."