Fuel prices take toll on Iowa's rough roads

Iowans are driving less, and that means there's less money from gasoline taxes to fix the state's badly deteriorating roads.

"It's clearly very serious," said Elizabeth Baird, a lobbyist with the Iowa Department of Transportation. She supports legislation to increase vehicle license and registration fees to collect as much as $126 million a year for road improvements.

Iowans used 18.8 million fewer gallons of gasoline and ethanol-blended road fuels in the 12-month period that ended in February, compared with the same period the previous year, according to the state's revenue department.

The collection of gasoline taxes also took a hit because of the roughly 2 percent drop in gas and ethanol-blended fuel taxes. State revenue from fuel taxes, charged on a per-gallon basis, dropped from $324.2 million to $318.1 million.

Diesel sales, however, were up, which helped offset the loss. In all, the state collected roughly $2 million less in total motor fuel taxes in the 12-month period that ended in February.

Even small revenue dips are problematic, particularly in a year where many counties face problems with muddy roads or aging bridges and highways, transportation officials said. On top of that are state projections estimating Iowa needs to spend an extra $4 billion on roads over the next 20 years.

Money collected for road infrastructure has been relatively stagnant in recent years while costs have increased. It's part of the reason some state lawmakers are pushing for House File 2562 and Senate File 2389 - proposals to increase license and registration fees to help improve the state's roadways.

Part of the drop in gasoline consumption could be because of weather or Iowans who are choosing to drive higher-efficiency vehicles. But the overriding reason is that Iowans are driving less, said Michael Lipsman, an economist with the Iowa Department of Revenue.

"People are trying to cut back on unnecessary trips," Lipsman said. "When you're looking at a 12-month comparison, I can't think of anything else that would cause that drop."

The upward trend for the price of gasoline, which is currently above $3 per gallon, is the main reason people are seeking transportation alternatives, Lipsman said.

Des Moines' public bus service saw a 12 percent increase in ridership for the one-year period that ended in February. Preliminary estimates show March ridership will grow, too.

But high gas prices also hit public transportation systems. The Des Moines Area Regional Transit Authority will pay an estimated $1 million more for fuel this year, which is the driving force behind a 25-cent individual one-way bus ticket increase that begins June 1.

"It's always a double-edged sword," said Brian Litchfield a spokesman for the transit system.

Joe Spann, president of Auto-Lab, a car-care center at 2723 Grand Ave. in Des Moines, estimates that he's selling roughly 5 percent fewer gallons of gasoline than a year ago. On Thursday, gas prices at his shop increased from $3.10 to almost $3.20 a gallon.

"My question is, how much more of this will it take to make us quit driving?" Spann asked.

Jeff Brenner, an 18-year-old Urbandale High School student who stopped by Spann's business, said he and his friends have taken note of the prices.

"We're carpooling more," Brenner said. "Really, I do it as much as I can."