What does $95 million mean to the Treasure Valley?

After more fits and starts at putting together a transportation funding package than I want to count, the Idaho legislature passed a bill to increase transportation revenue by an estimated $95 million per year in the wee hours of Saturday, April 11. As some had predicted, it turned out to be the “going home” bill.

First, I’d like to say “thank you.” Thank you to the many members of both houses and both parties who considered “out of the box” ideas, worked to educate themselves on transportation funding issues, or drafted legislation. While I’ll admit it wasn’t always pretty, I do believe the conversation about transportation funding was raised to a new level in 2015, and that in itself was valuable, in addition to the $95 million.

Now that the dust has settled, what does the nearly $95 million per year in increased transportation funding mean for Ada and Canyon Counties?

1.    The estimated $95 million per year in additional funding will be split between the Idaho Transportation Department (ITD) (60%) and local roadway agencies (40%).

·         ITD is expected to receive approximately $56.5 million statewide per year in additional funding. It is unknown at this point how much of that funding will be spent in Ada and Canyon Counties.

·         Local roadway agencies will receive approximately $37.6 million statewide per year in additional funding.

·         Of that $37.6 million, local agencies in Ada and Canyon Counties combined are projected to receive approximately $9.2 million per year in additional revenue.  

2.    The additional funding can only be spent on maintenance of roads and bridges. Of the projected $159 million shortfall in the two-county area, approximately $30 million per year is maintenance on local roads and bridges. The $9.2 million discussed above will be used toward this $30 million shortfall.

3.    The additional funding cannot be used to expand or improve roads and bridges (e.g., add traffic lanes) nor can it be used for public transportation. Of the $159 million annual shortfall in Ada and Canyon Counties, $129 million falls into these categories. The additional funding does not help here.

4.    ITD will receive additional funding for the next two years if there is a budget surplus at the end of the fiscal year (“surplus eliminator” funding). It is unknown at this point what the total amount will be or how much of that will be spent in Ada and Canyon Counties.

So, where does that leave us?

In short, it leaves us short. It helps, but does not cover our maintenance shortfall, nor does it help the Treasure Valley prepare for the future by providing for public transportation or expanding our roads and bridges.

We still need…

1.    Local option funding authorization to allow local agencies to ask citizens if they want to tax themselves for a specific project (see my blog of April 14, 2015).

2.    Dedicated funding for public transportation. Right now, we do not have this in Idaho. This could be local option funding, it could be something else, or it could be a combination of funding sources. We can’t serve our growing population if we can’t provide adequate public transportation.

3.    A means to “grow” our transportation funding. It took 19 years for the Idaho legislature to increase the gas tax, and even then it was a difficult, painful process that yielded far less than needed. We need to index our gas tax to inflation, or provide some other means of automatic increases, so that future legislators are not forced into this position again. Even with the $95 million increase, we continue to fall behind.

4.    To continue to look at “other” ways to fund our transportation system. Our gas tax revenues will continue to fall further behind as vehicles become more fuel efficient. We need to be thinking about what we can, and should, do in the future. While the concept of a fee based on vehicle miles travelled is not popular, something that raises funds based on an individual’s use of the transportation system needs to be on our radar.

5.    Congress to act. In Idaho, 54% of our transportation funding comes from the federal government. This is extremely high compared to most states (which is an issue in and of itself), but it highlights the importance of federal funding to Idaho. We need Congress to follow Idaho’s lead and increase the federal fuel tax – unchanged since 1993 – to help keep pace with inflation. I’ll talk more about that in my next blog.

I’ve said it before, and I’ll say it again…this is too important an issue to only discuss the three months of the year when the Idaho legislature is in session. We need to keep the conversation alive, year-round, at the local, state, and federal levels.

Don’t let the Treasure Valley fall through the cracks