Kentucky Club for Growth
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July 2, 2010

A Decision for Future Transportation Policy

At some point in our history, policymakers made a decision that our public transportation infrastructure should be funded through the revenue raised by gasoline taxes and other vehicle-related fees and taxes. Given that gasoline usage is a strong proxy for road usage the decision to dedicate revenues in this way is a pretty fair way to support the public infrastructure. The more you use roads, the more you pay for them.

In Kentucky, the structure is pretty strict: gas tax revenues and titling fees go to the Kentucky Transportation Cabinet and basically create its budget, combined with federal road funds that largely originate from federal gas taxes.

As gas prices have risen and the economy has cooled, these revenues have declined as less gasoline has been consumed, which has created a small challenge for Kentucky to continue to meet the demands of maintenance. However, there is a greater challenge looming.

In a recent editorial in the Courier-Journal, Stan Lampe with Kentuckians for Better Transportation eventually gets around to asking the perplexing question:

In a nation with 246 million internal-combustion engine vehicles, other automakers seem ready to roll out more "plug-in" or electric vehicles before the end of the year. In an attempt to attract average Americans, Nissan will roll out its $30,000 Leaf subcompact in October or November. General Motors will offer its Chevrolet Volt plug-in around the same time. The "plug-ins" are coming.

But these significant cost and climate obstacles aren't preventing automakers from jumping into the "plug-in" market. BMW also announced that its next electric car, called the ActiveE, will undergo consumer testing this fall and may be ready for mass production and the showroom in 2011.

And so, it is crystal clear: the "plug-ins" are coming. What remains unclear is this: how are they going to pay their fair share for the use of the city streets, county roads, and the highway system?

While there will be no shortage of gasoline consumers in the immediate future, we will face an increasing number of drivers of vehicles that aren't paying for the roads they drive on through this traditional system. And we may have to completely rethink transportation funding in this country,

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06/01/10 : The 2009-2010 Scorecard

03/24/10 : Bills in Frankfort Today - March 24, 2010

03/23/10 : Bills in Frankfort Today - March 23, 2010

03/18/10 : Bills in Frankfort Today - March 18, 2010

03/17/10 : Bills in Frankfort Today - March 17, 2010

03/16/10 : Bills in Frankfort Today - March 16, 2010

03/15/10 : Frankfort Today - March 15, 2010

Drees: Raise gas tax to fund bridge - Pat Crowley, NKY.com

Ky. House nears tax vote - Pat Crowley, NKy.com


Donor records might have similarities - Lexington Herald-Leader

Club for Growth launches in Oregon

The Kentucky Club for Growth is proud to announce its 2007 scorecard rating members of the Kentucky General Assembly on fiscal issues.

How did your legislators do?


Club for Growth eyes spending - by Patrick Crowley, The Enquirer

Political group taking on state - by Stephenie Steitzer, Kentucky Post


Ky. jobless rate hits 11 percent - Courier-Journal...

The Governor's Budget Proposal
This is a reposting of the first article of email update sent out earlier today.  If you don't receive them, you may want to sign up.Here's the Governor's proposal:$147.1 million in spending cuts $81.5 million from a 70-cent cigarette tax...

$373 Million in Cuts
Governor Beshear has told agencies to plan for 4% budget cuts, suggesting that he's either expecting to raise taxes, or not expecting the $456 million shortfall to materialize.  4% of FY 2009 appropriated spending is only $373 million....

Governor Announces Administration Exploring Cuts, Taxes
Governor Steve Beshear announced that he is expecting a $294 million budget shortfall and is going to gauge public reaction before making a specific proposal to address it in December.  Cuts and taxes are on the table.Waiting until December is...

Strapped
The media is so sure there's a revenue problem, that it's hard to even fathom that the reality is that state revenue is increasing.

Business Tax Climate
We're #34 according to the Tax Foundation's 2009 State Business Tax Climate Index.

Financial Troubles
"The Negative Outlook reflects plans to continue to deplete fund balances and virtually drain the budget reserve trust in the current biennium. Further, Fitch remains concerned about the weakened pension funding levels and the commonwealth's rising debt position as an additional $1.65 billion in debt has been authorized for the biennium."

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