At the end of 18 months and nine meetings — including a grueling eight-hour rehash of facts and figures on Tuesday — the line containing the two big blanks projected on screens behind Gov. Butch Otter’s transportation task force at the Capitol.

After all the studies, lobbying, discussions, and media to and fro, that is what it all came down to. Was this committee that Otter ordered after getting his 10-cent gas tax increase idea shunned by Republican colleagues last year going to follow through on its inclinations and suggest a hike? Would the group lay out for legislators a concrete path for how to address the transportation department’s staggering funding shortfall by ?

No on both counts.

With task force members discussing peripheral particulars and no one straight up addressing the blanks, committee chair Lt. Gov. Brad Little called a 10-minute break. During the intermission, Little huddled with Senate Transportation Committee Chairman Sen. John McGee, R-Caldwell behind the dais. The break over, Little called on McGee, who said the group had accomplished much and pushed the proceedings toward a close.

“We will now be able to provide the Legislature and the governor much more information on what it’s going to take to maintain and operate Idaho’s roads,” he said. The task force, he said, had fleshed out the issue. “We have taken a long-term look and a thorough look at transportation across the state.”

The task force had determined  the Idaho Transportation Department needs about $500 million more per year, had conducted a study that found semi-trucks pay far too little for highway maintenance and that cars pay way too much, considering how much damage each inflicts on roads, and had compiled a list of ways road funding might be generated to pass along to legislators, including a gas tax, a tax on wholesale fuel sales, and an excise tax on car rentals.

“We’ve now ranked what this task force believes is palatable,” McGee said. “We’ve made those determinations. That’s on the list of the accomplishments of this task force. If we go now and try to plug in numbers it becomes futile because the variables and the factors are changing so much … I don’t know how we’re going to come to any conclusions on that. We’ve done a lot of great stuff already.”

Prior to McGee’s speech, Rep. Dennis Lake, R-Blackfoot, said the task force would be falling short if it didn’t offer specifics.

“Where I get hung up, we say we’re recommending we increase revenue by ‘X’ number. Why in the world would we want to not tell them how? The credibility of the task force is on the hook out there. If we want to punt to them (the Legislature) and say ‘you figure it out,’ then we haven’t done our job. We need to tell them how to get there.”

Lake cast the only vote against making recommendations presenting the amount ITD needs and offering the list of methods to produce the needed money.
 After the meeting, Lake said: “I expected the task force to make some specific recommendations. I think there were people, including ITD, that were looking for specifics.”

However, Lake did agree with McGee, and others on the committee, who said the group did well generating more information for lawmakers to work with. Task force member Jim Riley, a representative of the forest products industry, agreed, saying, “I am Ok with the thinking that this task force defer to the governor and the legislature on how and when to satisfy (funding) need.”

Rep. Marv Hagedorn, R-Meridian, said: “I think we’ve drilled down to the point where we know what those (funding) expectations  are now. I think that we have accomplished a lot.”

But Dave Carlson, AAA Idaho’s longtime director of governmental relations, said the task force failed to face up to the study showing cars pay too much and trucks too little.

“They backed out of a discussion about policy that we think would have broadened the entire tax base and would have created solutions far more palatable to the public.”
 He went on: “I’m not sure the questions were answered equal to the charge that the governor asked for in the first place.”

Carlson, and others, including Democratic gubernatorial candidate Keith Allred, had called for trucks to pay higher registration fees based on weight. 
The task force, Carlson said, did not “consider the value of a study  that we thought clearly changed the landscape on how transportation funding in this  state should be accomplished … the committee members looked like they were trying to find answers, to put business interests ahead of taxpayers’ interest. That’s unfortunate.”

McGee, in an interview after the meeting, said the situation is not so black and white.

“It’s not as simple as cars versus trucks,” he said, noting the role in the economy trucks play and the potential negative impacts on commerce a fee increase might cause. “We have think beyond the visceral reaction we have to the study.”

House Transportation Committee Chair Rep. JoAn Wood, R-Rigby, questioned if the state’s system was indeed out of whack and suggested the cost-allocation study wasn’t complete.

“There may be some information coming forward,” she said. “I can see a bit of discomfort with that we’re saying that it’s not a balanced system … we’re not sure we’re not in a balanced system.”

Read ITD’s news release below.

This case concerns the validity of permits issued by the Idaho Transportation Department for the transport along U.S. Highway 12, from Lewiston, Idaho to the Montana border of several very large coke drums for an oil refinery.

Several residents and business owners along the Highway 12 corridor contested the issuance of the permits in the district court, which issued a temporary injunction, and then went on to hold the permits invalid.

The matter was appealed by ConocoPhillips, who challenged the district court’s ruling.  In a 3-2 written decision issued today by the Idaho Supreme Court, the Court held that it had no jurisdiction to consider this matter because there is no statute authorizing it to do so.

The Court also held the permits issued by the Idaho Department of Transportation were not a final order of the Department, and therefore are not an appealable order. It further held that those contesting the permit had no right to seek judicial review in the district court since they were not parties to the Idaho Department of Transportation proceedings. The Court therefore

reversed the decision of the district court, holding that neither the district court nor the Supreme Court had jurisdiction.

Dan John, tax policy supervisor with the Idaho State Tax Commission, told members of Gov. Butch Otter’s “Task Force on Modernizing Transportation Funding in Idaho” at the Capitol on Friday that he figures 15 percent of dye-added diesel purchased in the state is illegally used in motor vehicles — Idaho’s 25-cents per gallon gas tax doesn’t apply to dye-added (red) diesel, which is meant for use only in unlicensed equipment, like combines and tractors, on private property, job sites, or forest service roads.

“What we don’t have is an effective method to enforce that,” said John, adding that the tax commission isn’t equipped to track down cheaters, perhaps by dip-testing tanks as law officers in some states do. “This is an enforcement tool often handled by people with guns,” he quipped.

The state pretty much depends on tips to find people improperly using dye-added diesel, John said.

The diesel discussion Friday was part of a wide-ranging session that addressed the possibilities and potential pitfalls of various methods of raising road-project money. Options include hiking the gas tax, increasing registration fees, imposing an excise tax on car rentals, a sales tax on auto parts, or a weight tax on semi-trucks, which could generate $50 to $60 million per year. A recent ITD study that looked at how much wear-and-tear cars cause roads compared to trucks found that owners of cars and light trucks are overpaying for roadwork by about 8 percent, while heavy truck operators are underpaying by about 14 percent.

Gov. Otter ordered the bipartisan task force last year after legislators rejected his plan to raise the gas tax by 10 cents — from 25 cents to 35 cents — over five years. He gave the group until December to make a recommendation to the Legislature on how to bring in more money.

The second-to-last gathering of the group Friday involved more questions than conclusions with members being briefed on various possible funding methods and the problems they pose. For example, it would be difficult to tax auto parts sales, as Gov. Otter has proposed, because the state does not track closely enough sales of particular products; a business can be registered with the tax commission as selling one particular category of product, when in fact the outlet may sell a variety of goods.

“The data we have on products being sold in Idaho is not good,” said John.

As for the potential impact of adding a $1 surcharge on the sale of each tire in the state, or to studded tires only, task force members were given fuzzy figures. ITD Economics and Research Manager Doug Benzon called the tire sales figures he used to calculate potential revenue estimates “guesses.”

“This is a lot of pie-in-the-sky stuff,” he said.

While a bevy of options remain on the table, the task force, chaired by Lt. Gov. Brad Little, has in the past leaned toward a gas tax increase or some sort of fuel levy, perhaps a “transfer fee” charged to fuel distributors at the point they draw it from the pipeline.

A 1-cent gas-tax increase could generate as much as $8.2 million annually.  If tied to inflation and cost of living increases, it could mean a 9-cent tax increase and annual revenue of $73 million.

Meanwhile, Democratic gubernatorial candidate Keith Allred has called for the tax to be cut from 25 cents to 22 cents with increases in fees charged to heavy trucks making up the difference. Otter said the notion “shows a lack of leadership and credibility” and characterized it a campaign stunt.

Much of the talk Friday dealt with predictions and prognostications, and, with a transportation department that says it needs around $250 million more each year to keep up with maintenance and $575 million more to build what’s needed, Benzon offered an additional forecast: 
”We’re going to be struggling for a long time.”

The task force is set to meet for the last time and settle on recommendations Nov. 23.

Large trucks are a steady political topic in Idaho.  Gov. Butch Otter and his Democratic opponent, Keith Allred, have sparred over whether to raise fees for trucks.  On Tuesday, a north central Idaho judge ruled against a permit issued by the Idaho Transportation Department to the oil company ConocoPhillips to move large oil equipment on extra-wide trucks on a state highway.

Crapo is sponsoring a plan in the Senate that would give state legislatures the option of upping the maximum weight limit on interstate freeways 21 percent, from 80,000 pounds to 97,000 pounds.

“Idahoans deserve flexibility to determine truck weights that make sense for Idaho roadways,” Crapo wrote about his plan, the Safe and Efficient Transportation Act (SETA).  “SETA would give Idaho and other states the option to increase interstate truck weights safely to get more goods to market with fewer trucks.  This is good for Idaho commerce, highway safety and the environment.”

Crapo said the Department of Transportation estimates that going to heavier trucks with six axles could save $14.5 billion in shipping costs a year, and would decrease the number of trucks on the road, making it safer for other drivers.  The heavier trucks would also be subject to an overweight vehicle tax that would go to fund road and bridge repairs.

Reps.  Mike Simpson and Walt Minnick are backing a similar plan in the House.  Neither version of the legislation has been approved by a congressional committee.

Read Crapo’s full opinion below.

Lifting the weight off Idaho commerce
Each time we shop, every time we purchase something, chances are pretty good a truck played a role in getting those goods to that retailer.  Trucks play a vital role in our country’s commerce, and getting goods from source to consumer safely and cost-effectively is an important consideration.  That’s why I joined with Senators Susan Collins (R-Maine) and Herb Kohl (D-Wisconsin) to introduce the bipartisan Safe and Efficient Transportation Act (SETA), S.3705, which provides a voluntary opt-in program to let states determine if increasing truck weights would be appropriate within their state.  Idaho’s Representatives Mike Simpson and Walt Minnick co-sponsored identical legislation in the U.S. House of Representatives.

SETA would increase truck weights from 80,000 to 97,000 pounds–provided trucks are equipped with a sixth axle–on the Interstate System in states that opt into the plan.  The legislation provides an option for states–not a mandate; states who want to opt in must get state legislature approval.  Idahoans are best positioned to determine the appropriate truck weight for vehicles operating on roadways within Idaho’s boundaries.

While there is considerable debate over acceptable truck weights, the benefits of truck weight flexibility to states far outweigh any negatives.  Although some are concerned increased weights would escalate strain on roadways and heavy trucks aren’t paying their fair share to maintain highways and bridges, a number of important factors are being overlooked in this debate:

• The weight increase would be optional for states.
• Idaho businesses, shippers, and consumers benefit from more efficient, affordable shipping choices.
• Allowing heavier trucks on interstate highways would keep them off less-equipped, smaller roads.
• Truck weight flexibility could improve Idaho’s competitiveness.
• Increased truck weights could result in safety and environmental benefits.

Idahoans produce more than is consumed in the state, and a truck weight increase option would let producers better consolidate goods, reduce shipments and refocus resources on jobs and equipment upgrades.  The Department of Transportation estimated using six-axle tractor-trailers could save as much as $14.5 billion in shipping costs annually.  Nearly 150 businesses and associations, including the Idaho Grower Shippers Association, the Idaho Potato Commission and the Intermountain Forest Association, support SETA.

Idaho has a 10-year pilot project allowing trucks weighing up to 129,000 pounds on approximately 500 miles of state highways in southern Idaho.  The program enabled Amalgamated Sugar Company alone to reduce truck trips by 30,000 and save nearly $300,000.  As Idaho businesses compete globally, Idahoans must be able to establish truck weight limits competitive with neighboring states;  Montana, Nevada, Utah and Wyoming have less severe federal highway truck weight limits.  Canada, the United Kingdom and many other countries also have higher weight limits.

Larger interstate highways are better equipped to carry heavier trucks.  SETA includes a user fee for 97,000-pound, six-axle trucks that would fund accelerated bridge repair and maintenance.  The higher weight limit would also reduce the number of trucks needed on the road, saving $2.4 billion in pavement restoration costs over 20 years and make roads safer by decreasing vehicle miles traveled.  A smaller number of trucks would provide safety and environmental benefits.  Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds in 2001, fatal truck-related accident rates declined by 35 percent.  Reducing the number of trucks also means reduced fuel usage and emissions.

Idahoans deserve flexibility to determine truck weights that make sense for Idaho roadways.  SETA would give Idaho and other states the option to increase interstate truck weights safely to get more goods to market with fewer trucks.  This is good for Idaho commerce, highway safety and the environment.

Photo courtesy of David Frazier.

The cost of a four-year driver’s license will go up from $24.50 to $30 on January 1st. The price of taking a driving skills test will go from $15 to $24. Right now, a new vehicle title costs $8. In January, it’ll be $14.

The complete list of increasing driver’s license fees and other DMV fee increases are available at the Idaho Transportation Department website. You can also read ITD’s news release on the fee changes.

Much of the federal funding in the current Idaho Transportation Department’s current budget comes from the stimulus plan Congress approved in February, money that won’t be in the next ITD budget.  The stimulus was “a shot in the arm that lasted briefly” according to Tom Warne, who spent decades working for the Utah and Arizona transportation departments.  Warne spoke Wednesday to a state task force looking at how to fund construction and maintenance projects for roads and bridges.  The ITD estimates that repairs and restoration work for bridges and roads will total more than $200 million a year in the next few years.

Warne said Idaho is the state 12th-most reliant on federal funding for roads, but will likely see less money in the next major federal transportation bill, which may not be approved until for three years.  He says that’s because the climate-conscience members of Congress and the Obama administration are shifting spending priorities toward high-speed rail lines and other mass transit projects.  Warne says the “newfound love for high speed rail is not terribly relevant to Idaho.”  He says future federal road dollars will also have more environmental regulations and other requirements attached.

“We’re not going to be able to count on a lot of new federal money,” said Lieutenant Governor Brad Little, who is leading the transportation funding task force put together by Governor Butch Otter in June.

While federal funding could taper off, other states are experimenting with their own transportation funding plans that could work in Idaho.  Some of Idaho’s neighbors, Wyoming, Utah, and Oregon, rely far less on federal money for roads. Warne said citizens will usually pay for transportation plans if the plans are specific and require only temporary tax and fee increases. His main example is Utah, where lawmakers approved a multi-billion dollar highway construction plan prior to hosting the Winter Olympics. Other states have all relied on raising the sales tax or specific taxes on gas, vehicles, rental cars, hotels or other statewide or local fees to fund transportation projects with the support of either lawmakers or voters.

Last session, Otter failed to convince the Legislature to raise taxes and fees to pay for transportation infrastructure. Lawmakers, particularly in the House, said Otter either did not make a compelling enough case for more money or that the economic conditions were not right for a tax hike.

Idaho Transportation Department Chief Engineer Tom Cole said Wednesday the state would need at least an additional $211 million each year for basic road and bridge maintenance.  He said that money would “just keep the system where it is now”, and gradual improvements would add another $60 million to the ITD’s yearly bill.  Cole said additional road construction to reduce congestion and improve safety could tack on another $283 million.  Added up, that’s at least $573 million currently without funding.

The state task force has yet to settle on how much needs to be raised or where the money will come from.  “The big thing here is trying to fix our infrastructure while keeping the costs down for citizens” said Senate Transportation Chairman John McGee, R-Caldwell.

Idaho Governor Butch Otter set up the task force after lawmakers rejected his proposals for tax and fee increases to fund highway infrastructure needs in the 2009 session.  The group of elected officials, transportation leaders, and citizens has until next December to find funding that is politically palatable and fiscally stable.  That’s just under a year away, but some on the panel say that deadline isn’t too far off.

“We really don’t have that much time,” said State Senator Shawn Keough, R-Sandpoint.  “A year from now we’re supposed to have our work completed.  And in between then, we have another legislative session and an election cycle.”

The transportation funding task force won’t meet again until February, and a plan for paying for looming roadwork likely won’t come until 2011.   “I do not think you will see major change this session,” said McGee.

Otter and several lawmakers have said they won’t raise taxes next year.  Otter has said all options are on the table for paying for roadwork.