Road package increases many vehicle fees

A bipartisan group of lawmakers has crafted a highway funding plan that would eventually funnel $185 million a year into road construction and maintenance programs.

The proposal, which nearly closes a projected annual shortfall in needed road work, would be financed by a complicated series of fee increases that would touch virtually everyone who registers a car, truck, recreational vehicle or trailer.

To ease the political fallout of a big fee increase in an election year, existing vehicles wouldn't be included. The higher fees would kick in only when consumers begin to buy new vehicles next year.

"We have to do something because of the deteriorating roads in the state," said Rep. Geri Huser, D-Altoona, who heads the House Transportation Committee.

The top Republican on the panel said the biggest concern was public safety.

"We've worked together completely to address the concerns that both parties have," said Rep. David Tjepkes, R-Gowrie, a retired state trooper.

Huser spelled out the details of the complex package Thursday during a meeting of the Transportation Committee. Huser said she wouldn't push the measure until all lawmakers had time to consider it and reach a conclusion.

Legislative leaders said they plan private meetings next week to go over the plan, assessing its impact on the state's highway system and the political risks of a widespread increase of fees in an election year.

Among elements of the plan:

- For cars and multipurpose vehicles, revenue from registration fees would be increased by $5.1 million next year. That number would grow to $114.2 million by 2018.

Department of Transportation head Nancy Richardson said that increase would come as consumers get rid of old vehicles and replace them with newer ones.

- Registration fees for pickup trucks would rise. For 3-ton, 4-ton and 5-ton trucks, there would be a split classification, one for trucks that are used for business and one for those that aren't. Revenue from fees would rise by only $500,000 next year, but that would grow to $56.2 million by 2018.

- Title fees for trailers, travel trailers, motorcycles, truck tractors and motor homes would rise from the current $10 fee to $20.

The total package would bring in $16.3 million next year, then grow to $51.9 million the following year and eventually reach $185 million a year.

A study last year showed that the state was roughly $200 million a year short of the money needed to maintain the highway system, and that's left many lawmakers in a bind. Few want to increase fees in an election year, but many are feeling the heat from constituents who want their roads fixed.

The easiest way to close the shortfall would be to increase the state's gasoline tax, but at a time when gas is hovering near $3 a gallon, Gov. Chet Culver has ruled out such an increase. Culver has said he would consider some combination of increased fees.