Oberstar makes case to Legislature for higher gas tax

02/20/2007

By Brian Bakst,
Associated Press
Last update: February 20, 2007 – 4:32 PM


With a gas-tax showdown between Gov. Tim Pawlenty and the DFL-led Legislature on the horizon, powerful
Congressman Jim Oberstar warned lawmakers Tuesday that Minnesota risks surrendering federal highway dollars if it doesn't come up with matching money.

Oberstar, a Minnesota Democrat and chairman of the 75-member transportation committee in the U.S. House, urged state legislators to boost the gas tax for the first time in nearly two decades. He said more state money is needed to make sure Minnesota receives all of the $4.3 billion in earmarked federal funds through 2009.

"If you haven't got enough money, then raise the user fee," Oberstar told a joint House/Senate panel. Highway and bridge projects eligible for federal funding require at least a 20 percent state match, he said.

"If the state isn't prepared to match the federal funds, it won't enjoy the benefit of whatever I do," he told reporters later.

Minnesota hasn't upped its gas tax since 1998, when it went to 20 cents per gallon. Oberstar said 45 states have raised their rates since then. Minnesota's gas tax brings in more than $30 million a year for every penny charged.

He said Minnesota roads are under increasing pressure. In 1988, drivers traveled a combined 36.4 billion miles on state roads; last year that climbed to 56.9 billion miles.

A bill that contained a 10-cent increase ran into a Pawlenty veto in 2005, and the Republican governor hasn't wavered in his opposition to raising the fuel tax to pay for road construction. He has promoted a strategy of long-term borrowing, arguing that interest on the debt is lower than inflation on project costs incurred through pay-as-you-go funding plans.

Minnesota hasn't enacted a substantial transportation package since 2003, and lawmakers from both parties say the state is having a hard time keeping up with a backlog of road work.

"We don't need funny money, we need real money," said Senate Transportation Committee Chairman Steve Murphy of Red Wing, who has sponsored a bill to raise the gas tax, annual vehicle registration fees and other car costs.

Senate Majority Leader Larry Pogemiller said Tuesday on Minnesota Public Radio that the Legislature will pass a major transportation plan "with or without the governor."

"We will do it better if it's with the governor," said Pogemiller, DFL-Minneapolis. "If the governor doesn't step up, I think it's our responsibility and our duty to do what's right for the future of the state."

Pawlenty spokesman Brian McClung didn't immediately return a phone message.

Even though Democrats enjoy large majorities in both legislative chambers, they would need Republican help to override a Pawlenty veto.

Seven Republicans who helped pass the 2005 bill remain in the House. But it's unclear how many of them — and the 85 House Democrats — would go to the mat for a gas-tax increase.

One of the seven, Rep. Ron Erhardt of Edina, said he expects a bill with a gas-tax hike to attract GOP votes. But he's less optimistic that those same legislators would help trump a veto.

"They've got the wagons circled," Erhardt said. "For some odd reason they think they need to defend the governor on overrides."

A House override takes 90 votes. Democrats control 44 Senate seats and would need 45 for an override.

House Transportation Finance Committee Chairman Bernie Leider said he doesn't expect significant action on the issue until late March.