MTAC Testimony on Transportation Lockbox Proposal

On Monday, Feb. 29, MTAC President Joe Sculley testified before the Joint Transportation Committee regarding the proposed Constitutional Amendment to create a “lockbox” for transportation funds. An excerpt of that testimony is below. The full testimony is available as a PDF document.

MTAC believes that an amendment to the Connecticut Constitution should name revenue sources right in the Constitution. And it should identify, in general terms, the types of expenditures that can be characterized as “transportation.”

The Governor’s Transportation Finance Panel offered some aggressive financing proposals to raise $100 billion. These recommendations add to the critical necessity of passing a strong and enforceable lockbox. The Transportation Finance Panel options include fuel tax increases, license and permit fee increases, an oil companies tax increase, and congestion price tolling. The panel names possible locations for tolling as the I-84 west corridor, I-95 East, I-95 West, the CT River bridges in the Hartford area, Route 2, I-91/I-691//Rt 15 interchange, Route 9, and Route 11.

These tax and fee increases will be a shock to small business trucking companies who might be struggling to stay in business. Larger companies will pass those costs on to their customers, resulting in higher prices for goods and services for all CT consumers. Everybody will pay more for everything. And if the funds are diverted, those that provide the funding will get nothing in return. Connecticut is still dealing with growing budget deficits. A proposal for 5.75% across-the-board cuts is on the table for this year. Many leaders are suggesting a similar approach might have to happen next year as well. These proposals were suggested before the recent notice by OFA which states that the budget deficit is $900 million.

MTAC members see this news about large deficits and difficult cuts, and at the same time see the proposal to raise $100 billion under the auspices of this lockbox proposal. The STF is funded almost entirely by car and truck owners and operators who pay their fuels taxes, the oil companies’ tax, motor vehicle receipts, license and permit fees, and fines, as well as some federal highway funds, which are also generated by road and highway users. MTAC members fear that their taxes and fees will go up, and the funds will be diverted to other areas of government. If those fears were to come to fruition, it would mean that car and truck owners and operators would be subsidizing other areas of government (more so than they already are).