Kentucky Club for Growth
fighting and winning for economic freedom

« The Senate Races | Main | A Great Story On The American Dream »

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,

TrackBack

TrackBack URL for this entry:
http://www.kyclubforgrowth.org/blog-mt/mt-tb.cgi/965

03/29/12 : RS12 HB 499 - KEY VOTE - Insurance Premium Tax Hike

03/29/12 : Lip Service to Kentucky's Debt Problem

03/19/12 : RS12 HB 202 - KEY VOTE - A Health Care Mandate Without Precedent

03/15/12 : RS12 SB 10 - KEY VOTE - A Constitutional Amendment to Guarantee Legislative Oversight of Regulations

03/15/12 : RS12 SB 4 - KEY VOTE - Improving Regulatory Accountability

03/12/12 : Clarifying Redistricting, Maybe

03/08/12 : House Passes Budget Quickly with Eight Percent Spending Increase

Lexington Herald Leader 5/10:

"Thayer, 44, responds by calling Hostetler "a little desperate." Thayer touts his conservative support from U.S. Sen. Rand Paul, R-Ky., the National Rifle Association, the pro-business Kentucky Club for Growth (which ranks him best among 38 state senators) and the anti-abortion Kentucky Right to Life."


Last weekend, the Kentucky Club for Growth's strong anti-tax stance was recognized in the Courier Journal.

But other political experts say they aren't convinced outside groups will want to get involved, especially with public polling showing Beshear with a double-digit lead and Williams' record of occasionally supporting tax increases failing to excite conservative groups such Club for Growth or the tea party-related FreedomWorks.

"They're adamant about the 'no tax' thing," said Jennifer Duffy, a senior editor with the non-partisan Cook Political Report.

We are adamant about the 'no tax' thing, and we will continue to be the taxpayer's advocate in Frankfort.


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?


House Passes Budget Quickly with Eight Percent Spending Increase
Yesterday, the Kentucky House passed a budget for FYs 2013-2014. While most of the legislative discussion centers on cuts, the General Fund budget totals $19.5 million which represents an 8% increase over FY 2011-2012. Even if you compare it only...

What Farm Receipts Say About the Health of the Horse Industry in Kentucky
In 2011, Kentucky's farm receipts are expected to top $5 billion for the first time, thanks to Kentucky's health agriculture economy as well as high prices for corn. Looking at Kentucky's top crops by receipts, the landscape continues to change....

The Outlook for Small Businesses is Bad, and Bad for the Economy
The NFIB reports: For the fifth consecutive month, NFIB's monthly Small-Business Optimism Index fell, dropping 0.9 points in July--a larger decline than in each of the previous three months--and bringing the Index down to a disappointing 89.9. While the national...

Employment Trends and Rates
Unemployment in Kentucky inched downwards this month: Kentucky's unemployment rate fell to 10 percent in April, down from 10.2 percent a month earlier. The state added 3,800 jobs in the month, as "Kentucky's economy continued to show signs of improvement...

State Budget Surplus Good News for Kentucky Economy
At the end of every fiscal year in June, the state always runs a small surplus. No matter the economic circumstances or budget cuts, because the state is constitutionally required to balance the budget, the state will end up with...

Legislature, Governor Probably Shouldn't Count on Revenue Improvements
As the legislature debates plugging a $166 million shortfall in the Medicaid budget, it seems many legislators are just hoping that revenues improve and that the hole they're digging in next year's budget would just go away. Yesterday's housing news...

US Labor Force Still Shrinking
The US labor force participation rate is at it's lowest point since the early '80's....

Quality Sites

Cato Institute
National Club for Growth

Blogs

AFP Blog
Alarming News
American Spectator
Ankle Biting Pundits
Betsy's Page
Boudreaux's Blog
Business & Media Institute
Cafe Hayek
Callaxy.net
Cato @ Liberty
CNBC's Squawk Blog
Constrained Vision, A
Coyote Blog
Dean's World
Federalist
Flash Report
Grassroots PA
Kudlow's Money Politics
Manufacturers' Blog
Marginal Revolution
NTU's Government Bytes
Newmark's Door
One Man's Trash
PoliPundit
Politics1.com
Politics of Money
Poor and Stupid
Porkopolis
Professor Bainbridge
Raising Farrahzona
RedState.com
Rossputin.com
Sibby Online
South Dakota Politics
Sports Economist, The
Tax Guru

Kentucky Blogs

Bluegrass Policy Blog
Blue Grass, Red State
ConservaChick
Conservative Edge
Conservative Musings
CyberHillbilly
Elendil's Blog
Jefferson Review
Jim Clark's Muckraker
Kentucky Pachyderm 2
Kentucky Progress
KY Wordsmith
On the Right!
Osi Speaks!
Page One Kentucky
The Pure Investor
Vere Loqui

Powered by
Movable Type 4.23-en

Technorati Profile
  RSS

The KY Club for Growth seeks principled candidates who are committed to the following:

* Free market principles
* Lowering taxes
* Reducing spending
* Decreasing the size of government
* Judicial reform
* Protecting property rights
* Expanding school choice
* Reducing needless regulation

We will hold endorsed candidates accountable for these principles by monitoring each candidate on a vote-by-vote basis. As a Club member, you will receive candidate monitoring updates and scorecards on a regular basis. Join us today.