Tuesday, April 12, 2011

GOVERNOR VETOES IMPORTANT HIGHWAY BILL

After passing both the House and the Senate in this year’s legislative session that ended in March, SB 229, Transportation Funding Revisions, sponsored by Senator Stuart Adams (R- Layton), and former Transportation Commission Chairman, the Governor Herbert shockingly vetoed the bill. This well thought out bill, supported by business groups, chambers, highway planning organizations, and legislative leadership was a “win-win” for everyone in the state.  The reason is it is the bill is not a tax increase and could provide a steady stream of money for highways and highway maintenance for years to come. The legislature will not increase the gas tax and according to UDOT nearly all the highway funding programs run-out of money in the years 2012 – 2013.  Already UDOT has indicated that they cannot give valuable, regular maintenance to many Utah roads because of a lack of funds.

SB 229 would give a small percentage of only future sales increases.  The sales tax given on only on increases in sales tax is from the sales tax from the sale of cars (user fee).  If future sales tax increase all programs will benefit – thus “win –win”.  Presently business groups including UTA are working for the first time for a veto,
override.  Without SB 229 Utah will fall back again in highway funding and dig itself a hole that will take year to fill. Highway projects take years to plan, get approval, get funding, and construction. As the state delays highway projects and maintenance it will get more and more costly to fund projects.

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