No gas tax hike, less federal aid, Oberstar warns

02/21/2007

BY DENNIS LIEN
Pioneer Press


Supporters of a Minnesota gas-tax increase got a big push Tuesday from U.S. Rep. Jim Oberstar, who brought some newfound clout to the state Capitol.

The powerful House Transportation Committee chairman from northern Minnesota told a packed House-Senate committee hearing that Minnesota must work harder to maintain its highways and bridges and secure available federal money. The way to do that, he said, is to increase the state's 20 cents-per-gallon gasoline tax, which hasn't been raised since 1988.

"If you haven't got enough money, raise the user fee,'' said Oberstar, a Democrat who represents the 8th Congressional District. "I've seen this state administration spend fee after fee. Do you know how a fee is spelled? T … A … X.''

State lawmakers seeking gas-tax increases again this year predicted later that bills would pass the Senate and House this session. Sen. Steve Murphy, DFL-Red Wing, said the Senate has enough votes to override a veto by Gov. Tim Pawlenty, who opposes a gas-tax increase. Rep. Ron Erhardt, R-Edina, said the House might be able to do the same.

"The reality is we talk to people all across this state, and they feel like they are paying enough at the gas pump already,'' Pawlenty spokesman Brian McClung said.

As to the prospect of a veto override, McClung added: "We don't think that Minnesotans are itching for a gas-tax increase so badly that they would want their legislators to override a veto.''

Oberstar, who took over the committee chairmanship last month and can play a key role in directing transportation dollars to the state, spent more than an hour outlining national and state transportation-related infrastructure concerns.

He said the nation isn't making the needed investments. For example, he said, the number of miles traveled by drivers in Minnesota rose from 36 billion in 1988 to 57 billion last year — but taxes did not increase during that period to pay for the added wear on roads.

Along the way, Oberstar gave supporters of the tax increase a clear boost.

"I definitely think he bolstered the resolve,'' said Sen. Scott Dibble, DFL-Minneapolis. "He was very clear that what we have done to date has put us behind the eight-ball.''

Minnesota is one of five states that have not increased the gas tax during the past two decades, Oberstar said. Raising the per-gallon tax by 5 cents would provide $161 million more per year, putting the state in a better position to tackle highway projects and get all of its $4.3 billion in earmarked federal money through 2009. Highway and bridge projects eligible for that money need a 20 percent state funding match.

"If the state isn't prepared to match available federal funds, then it will not enjoy the full benefit of whatever I do,'' Oberstar said.

He said Gov. Jesse Ventura's administration didn't take full advantage of matching funds, and he suggested the Pawlenty administration isn't, either.

Asked later what he would tell Pawlenty about the governor's reluctance to sign a gas-tax increase bill, Oberstar said, "Face up to the reality.''

Pawlenty, who favors a long-term bonding program to pay for road projects, wasn't persuaded.

"The governor's position against a gas-tax increase is unchanged,'' McClung said. "We are looking at innovative thinking and partnerships, not just partisan attacks.''

In other remarks, Oberstar said he favors expanded light-rail and commuter train service in Minnesota and increased use of bicycle paths.

Murphy, who has proposed increasing the fuel tax and other vehicle fees, said action this year is vital.

"We're at a critical juncture right now, and I can't stress it enough,'' said Murphy, the Senate Transportation Committee head. "We need a funding package.''