State still needs money for transportation fixes

HARTFORD — The General Assembly last week avoided looming rail and bus fare hikes, but lawmakers left billions in potential new revenue on the table — and failed to find a long-term fix for Connecticut’s congested roads and crumbling bridges.

The Legislature diverted millions of dollars in tax revenue from car sales to the Special Transportation Fund and agreed to use discretionary bonding to keep the fund solvent.

That was enough to avoid Metro-North and bus fare increases and branch service reductions, and restore $4.3 billion in road, rail and bridge projects postponed by Gov. Dannel P. Malloy due to a lack of money.

But billions of dollars in potential future revenue from electronic highway tolls and legalizing marijuana — weed sales begin this summer in neighboring Massachusetts — was pushed aside, along with plans to widen Interstate 95 and other highways to relieve congestion that many say is choking economic development.

“The car sales tax revenue stabilized the STF for the time being,” said Chris Donnelly, a spokesman for Move CT Forward, a coalition of construction industries and union workers.

“It is a great first step that will get projects back up and running, as well as avoid the looming transit fare increases and service cuts,” Donnelly said.

“But we recognize that a long-term solution will be needed,” Donnelly added. “The ways and means to create that solution, however, will have to be part of a larger discussion.”

Lumps and tolls

State Sen. Toni Boucher, R-Wilton, and co-chairwoman of the Legislature’s Transportation Committee, said lawmakers did what they could in an election year — considering the Senate is tied 18-18 between Democrats and Republicans.

“They didn’t have enough commitment to put out much else,” Boucher said of the Democratic leadership, which pushed hard to enact tolls and obtain the $1 billion in estimated yearly revenue.

Republicans stood firmly against tolls and other revenue enhancements — taxes to some — backed by the majority Democrats and Malloy.

“The 7 cent gas tax increase and $3 tax on tires; no one wanted it,” Boucher said, referring to revenue proposals.

House Speaker Joe Aresimowicz, D-Berlin, acknowledged he wanted tolls, but the votes were not there.

“I took my lumps with tolls; that was my main issue,” Aresimowicz said. “I said I wanted an up or down vote, but there are times we need work with our caucus.”

A bill directing the state Department of Transportation to develop a tolling plan and bring it back to the Legislature within two years passed committees but was not brought up for a vote in the House or Senate.

Various bills to legalize marijuana and tap the over $100 million in projected yearly revenue also passed committee review, but were not put up for a floor vote.

Car taxes

The Legislature did agree to divert taxes from new car sales to the STF, beginning July 1, the start of the new fiscal year.

Under the plan, 8 percent of the car tax revenue will go to the STF in 2019. By 2023, 100 percent of the revenue will go into the STF, a dedicated fund reserved for transportation projects such as highways, rail and bridge construction and improvement.

The Democratic majority also adopted a Republican plan to redirect $200 million a year in discretionary borrowing for transportation projects.

“They are changing the bond allocations, something we have been pushing for years,” Boucher said. “There is at least $200 million a year in discretionary bonding. There are ways of reallocating projects, some are long term.”

Shell game

Jim Cameron, founder of the Commuter Action Council and a Hearst Connecticut Media columnist, said the car tax diversion is good news.

“I’m happy that the Legislature heeded the call of rail and road commuters and finally put some funding into the STF,” Cameron said. “But diverting a sales tax and issuing more general obligation bonds doesn’t answer the long-term need for more diverse funding sources.”

Cameron said Connecticut motorists still get a “free ride” in the absence of tolls, while rail commuters pay among the highest fares in the U.S.

“Eventually, the wisdom of tolls or a vehicle miles tax will prevail, though not in this election year when the pols would seem to prefer playing a ‘shell game’ with money rather than face reality,” Cameron said.