In a matter of years, Missouri’s Department of Transportation will no longer be able to maintain the state’s broad transportation system. Sen. Mike Kehoe is working to solve this problem with a proposal to let Missouri voters decide whether to create a new temporary one cent sales tax to help fund transportation needs.
Just a few years ago, the transportation department had a $1.3 billion budget. Already today, it’s half that. By 2017, Sen. Kehoe says dwindling transportation funding will leave the department with just $350 million to spend per year. That’s not enough to maintain the state’s current transportation assets.
“All of the sudden, you are going to be working with one fourth of the revenue resources than you were,” he said. “It’s incumbent upon us to try to replace some of those dollars to try to keep the system maintained.”
The transportation tax proposal is contained in Senate Joint Resolution 48, sponsored by Sen. Kehoe, a Republican from Jefferson City. A similar proposal in the House, House Joint Resolution 68, is sponsored by Dave Hinson, a Republican from St. Clair.
The proposal has been passed by a Senate committee and awaits a vote on the Senate floor. In addition, it must be approved by the House before the end of the session. Three weeks remain before lawmakers adjourn for the year.
Sen. Kehoe said that having a strong transportation system is an important tool for economic development. Without a new transportation funding plan, Missouri’s development efforts could face new hurdles.
“I believe our transportation infrastructure and economic development go hand in glove,” Sen. Kehoe said. “It is absolutely essential to a state’s economy to not only have a reliable transportation system but also to have the ability to expand to meet the needs of businesses and manufactures that want to expand in our state and want to move to our state.”
The Missouri Chamber supports efforts to ensure we have a strong transportation system.
For more information on transportation issues contact Jay Atkins, Missouri Chamber general counsel, at email@example.com, or by phone at 573-634-3511.