Bond Bill Committee Zeros Out Municipal Street Aid and Community Transportation Fund
This is reported to me by multiple sources at Leg Hall, (and the NJ!)with counties and other municipalities (and the REALTORS) furiously pushing back on this as well as the decrease in revenue sharing for the Real Estate Transfer tax. None of this is a done deal until the legislature takes its final vote, but blowing big holes in every single county and municipal entity here in Delaware doesn’t strike me as the most productive bit of business. Of course, they wouldn’t have such a big problem if they had passed a gas tax last year. Or if they had even passed the weak tea of the fee increases this week:
The bare bones $127 million capital project budget passed by Bond Bill Committee lawmakers Friday morning means no new paving projects, no municipal street aid for Delaware’s larger towns and cities, and no new community transportation fund money, which lawmakers use for smaller infrastructure projects in their districts.
“This limited program will affect everyone in your district,” said DelDOT Secretary Jennifer Cohan. “You are going to hear from them.”
Committee members begrudgingly voted in the department’s budget after the Senate failed to pass legislation Thursday that would have raised nearly $24 million via hikes to Department of Motor Vehicle fees. Lawmakers in both chambers still have to pass the state’s capital and operating budget during the last day of legislative session on June 30.
I’m very unhappy that the cuts to the bond bill apparently hit veterans, children and the elderly the most — while we somehow can find the money to transport charter school kids. I’m really disturbed that all of the governments who passed budgets based upon their usual share of the real estate transfer tax are now facing deficits not of their own making. The City of Wilmington is really going to be hit by this, but the person who sits on the Bond Bill for Wilmington no longer cares about what happens to the city as long as Dennis Williams is hurt.
More importantly, this is a corner that the Democrats made. By insisting that new taxes to pay for infrastructure were unnecessary last year, or even establishing some leadership on paying for the government that people want (as in stop giving the All the Government You Can Eat for Free crowd any credibility), or even taking up HB 196 as a signature initiative, this is how you pay for living in a defensive crouch over new revenues when the people you represent keep asking for more and better services. The GOP is being irresponsible, of course, but it isn’t as though there’s much leadership on this issue from the Democrats over the past years, either. The game-playing continues and we still drive our cars over pothole-filled roads.
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This is a despicable budget born of the cowardice of Republican and Democratic legislators.
Driving a car from another state into Delaware is embarrassing if not dangerous. We are dealing with a third world-esque infrastructure.
The cowardice of the Democrats and the lack of leadership from the Governor’s office is appalling.
Gas taxes and Fare increases are regressive. Unfortunately no one in power has the nerve to come up with a real solution and others fail to realize if you want goods and services you have to pay for them. This includes decent roads and bridges that won’t fall down
This hurts, I have CTF projects lined up and waiting in my community. This puts a number of projects that we planned to piggy back with CTF projects further down the line or maybe even means projects will be done only to be torn up and reconfigured later.
You are right cassandra_m there is no leadership. The gas tax should and been approved last year and since it wasn’t should have been brought up again this year.
I hear the arguments that a gas tax is regressive, but I also know it is a tax paid by those using the roadways and our vehicles have gotten more fuel efficient over the years so we are actually paying less now for the use of roads then we were the last time the tax was increased.
I sent my child to private school and I never was eligible for the transportation stipend. The stipend is no where near the cost of putting your student on a school bus, it can be done away with. No one is not going to send their student to private school because they didn’t get that small amount of money. At $75 it is a cruel joke and a waste of money that could be used to fill a few potholes.
I dont want to get into an argument over this but wages haven’t gone up in real money since the gas tax was last raised. Sometimes the cost of gas is the difference whether someone gets to work or not. Same goes for raising bus fares which did go up last year
Gas taxes and Fare increases are regressive.
Gas taxes are not regressive. And I have presented a ton of data on this point. If you do not want to pay the taxes, then man up and say that. Gas taxes pay for the roads you drive on and if you do not want to pay for their upkeep, then you should say exactly that rather than repeat this canard.
Potholes can damage your car and you can’t drive to work and incur a huge repair bill. Road construction and maintenance has to be paid for and the money has to come from somewhere. It the gas tax went up 5 cents a gallon and it takes 20 gallons to fill your car, and you use a tank a week that equates to an extra $1 a week. The price of gas fluctuates more than a nickel/gallon throughout the year.
Thats not the point I can afford it. But to some who are struggling that nickle a gallon makes a difference. People on this blog complain about how our income tax is structured because rates aren’t progressive enough. They say the Flat tax is unfair. What I’m saying there should be a solution. I’ve talked about a sliding scale tax that would be dedicated to the TTF as a possible solution. It may not be. But I find it unfortunate that those in charge won’t find a way but I guess that’s politics
So where is all of the concern for those who are struggling when gas prices get to $3.50/gallon? A gas tax is a pay-as-you-use-it tax. And people who are struggling are not the people racking up the most car miles. Struggling or no, road repairs need to be made. Even so, while there was an agreement to raise a number of DMV fees for additional revenue (still a cop out), the R’s couldn’t bring themselves to vote for their own compromise. Ideally, they’d pass HB 196 and a gas tax, with the gas tax dedicated to transportation funding.
The cuts were due in large part to the fact that NOT ONE RETHUG SENATOR voted for the fee increase package that would’ve at least raised something like an additional $30 mill.
The bill got 11 (actually 12) votes, but needed 13 to get the 3/5 supermajority. Once it was clear that the votes were not there, a D senator (Townsend) switched his vote to no as a procedural move to enable the bill to be restored to the calendar. Only someone who voted on the prevailing side (in this case, the ‘no’ side) can move to restore the bill. The cuts would be significantly less if this bill passes.
We have a lame duck Governor & others that want to be re-elected.
Cut in half the money that is wasted going to Bloom Energy & put that to the roads and infrastructure. Problem solved!!!
It is a shame that the gas tax was not increased. It would have helped pay for the needed improvements. Regressive, slightly regressive, or not regressive…it does not matter. It is a pure use-tax and hard to argue that it is unfair, assuming there are public transportation options. I recently went on a long trip through several states just after the brutal winter wreaked havoc on the roads. DE roads seemed better than PA which were a mess. OH roads, at least in the Northeast area I saw were great. All of us in the car commented “whatever OH is doing for their roads, we need to do that.” Where do PA and OH stand on the gas tax compared with DE?
Public transit is limited and in some cases non existent below the canal coupled with longer driving distances for many to get to work
Andy, good to point out that NCC is different than below the canal. If public transport is limited below the canal, does it stand to reason that a gas tax would be regressive for the Kent and Sussex folks sans for the few that could carpool to the same places. I am not passing judgement on the social implications of implementing a higher gas tax, even if regressive. Assuming it helps infrastructure, I’d support it.
I’d love to see an alternative to an increase in the gas tax that hit both people and business on a sliding scale on a average of 100 bucks a head. That gets you around 100 million to the transportation trust fund. More than enough
but the politics would never allow any alternative close to that. They can’t even get the gas tax passed.
The latest is stealing money from the Counties taking a cut of the real estate transfer tax
Gas taxes:
PA: 51.6 cents/gal
DE: 23 cents/gal
NJ: 14.5 cents/gal
MD: 30.30 cents/gal
OH: 28 cents/gal
NY: 44.46 cents/gal
Does the gas tax level make a difference? Are PA roads and bridges better than DE? If the gas tax does not go directly for road infrastructure, then it does not really matter where the money comes from. It comes down to from where the most politically palatable source of increased revenue is for the state. I would have thought it would be the gas tax, but Dover could not get it through.
The Gas tax goes directly to the Transportation Trust Fund along with other motor fuel taxes tolls DMV revenue
this is supposed to finance all of DELDOT including DART transit fares stay with DART
I don’t know that it’s the $$ that people are balking at. I’d gladly pay an extra $200 a year for well maintained roads rather than have my car shaken to pieces. From a pure economic standpoint I think it makes sense but DelDOT has done little to inspire trust that it will spend the money wisely and efficiently.
Andy, it is good to know that the gas tax goes directly to the Transportation Trust Fund. In that case, more money should equal better infrastructure if managed well (obviously not how PA is managing theirs).
A bill should introduced, to limit the money taken from the Transportation Trust Fund in the future. Let’s put the “Trust” back into the Trust Fund. It’s there for a reason and should be used for THAT reason!!
“Cut in half the money that is wasted going to Bloom Energy & put that to the roads and infrastructure. Problem solved!!!”
Only if you’re a moron. Bloom Energy’s money comes from electric consumers, not taxes.
The TTF needs to be protected so no more money can be taken from it. Otherwise what incentive is there for republicans to add money to a broken system? Also I would think a deal that establishes a new tax bracket above 150k in exchange for a small income tax decrease for those under 60k combined or 30k single per year as well as a 2% decrease in total spending would be an attractive compromise to all.
I know Cassandra laid out evidence showing the gas tax isn’t regressive, and ideologically it’s in line with my beliefs since it is a user fee. However IMO, which is just that, it’s an indicator for many people. When gas prices increase its just a gut response that things aren’t well in the economy. When I see them hover or drop I’m at ease. It’s stupid but I really believe it matters to people who aren’t involved or paying attention.
Lastly, legalize cannabis already. This is so dumb it’s like the table gaming debate. Let’s get ahead of the ball before PA, MD, or NJ can compete.
@ Geezer
I’m not a Moron, I know that the money is from electric consumers. The point is, I’d rather see the money going to something that is beneficial to all, than wasted on nothing!
And Geezer, why don’t you stop with the name calling. Maybe that is why people like “New Dave” moves on from this blog!
Be at least a little civil.
Civility starts with not insulting the intelligence of the people you are talking to. You need to up your game here (like New Dave) before you can lecture anyone about civility.
I am with Anonymous on all points in this thread. Bloom is a waste. DE needs to admit the mistake and move on as soon as their agreement allows. And yes, the TTF needs to be built up (via increased cost to drivers) and stop paying for DELDOT operating costs which are supposed to come from the General Fund, not the TTF, so I have read. I assume that is what you meant by putting the trust back into the TTF. Yes?
Adding to the civility comment, the lack of civility may not go away on this forum because it seems to me that some of the primary contributors set that tone. Eventually they may be the only ones left or just them bullying other bullies with alternate opinions. Occasionally entertaining but mostly just sad.
Lack of civility is policing the speech of other people here as a substitute for actually having something to say. There are no points for just showing up here. Most of the folks here spend a good deal of time understanding the issues, and if you are wrong, you will be told that. If you aren’t wrong, then you should engage those folks with real facts and data — not your hurt feelings.
The other thing that is decidedly no civil in this space is using more than one name. Gan and New Dave seem to be posting from the same exact place. Choose one name or you’ll be banned. Those are the rules of the road here.
And moving the operating funds out of the trust fund doesn’t do *anything* to deal with the current problem — a lack of funds to address the current need. There may be reasons to split them up, but this does not result in more money to fix roads or build infrastructure.
I’ve seen the rhetoric, language and contempt common on conservative blogs. Give me a fucking break.
“I know that the money is from electric consumers. The point is, I’d rather see the money going to something that is beneficial to all, than wasted on nothing!”
So you want to continue the surcharge on electric consumers as a substitute for a tax? Why?
Don’t think the “surcharge” should be continued. We are funding a private company, for what??
They keep taking the money from the trans fund, it’s for roads. So stop taking from that money. This is what Baton Rouge, LA has done to prevent that. http://www.dailyworld.com/story/news/local/louisiana/2015/04/20/house-panel-oks-limiting-transportation-funds-state-police/26091381/
Maybe I should start dropping F-bombs like old Geezer, might be a better way to get a point across, nah. Not my style
Try making sense instead. The money has to be spent no matter where it comes from. If they stop using the trust fund for salaries, the salaries have to be paid some other way.
Inchoate rage is not a policy prescription.
Sussex county keep its taxes artifically low by relying on the transfer tax which is a perverse incentive to approve any development
And most conservative outrage and vulgar rhetoric is falsely based on inuendo and minsinformation designed to drive resentment among lower middle class uneducated types
The gas tax has always works well both locally and nationally. It’s only since the the Republican party of obstruction has taken power that everything like this has failed.
What mouse says is true — there’s a perverse incentive to approve development in play. But the biggest problem with the tax is its volatility. One of the reasons Delaware was hit particularly hard by the 2008 economic crisis was its over-reliance on the housing market for tax revenue.
Exactly. It’s a cowardly way to govern that allows you to not ask the tax payer or developer for infrastructure funding