CHAMBER, RCGA BACK HIGHWAY PLAN

The boards of directors of the Cape Girardeau Chamber of Commerce and the Regional Commerce and Growth Association have unanimously endorsed a proposal to increase the state gas tax by 6 cents.

The revenue would be used to match additional federal money available from a new highway bill and would fund a massive list of road improvement projects over the next 15 years. The plan was unveiled last week by the Missouri Highway and Transportation Department.

Under the plan, the gas tax would be phased in over the next five years and would be under the state's constitutional spending limit that would require a vote of the people.

At a press conference Friday, both boards urged the General Assembly to pass the tax hike as soon as possible to insure that federal funds could be matched and jobs created this year.

In a brief statement, read by George Hathhorn, chairman of the chamber's Surface Transportation Committee, the groups pointed out: "This proposal as outlined will be the best `shot in the arm' for economic development in Missouri, and especially Southeast Missouri, that has been experienced in a long time. The jobs that will be created, as well as the improved transportation system, will benefit all of Missouri's citizens.

"Both the Cape Chamber and the RCGA agree upon the urgency in this proposal being passed, since federal funds through the new highway bill will start flowing into the transportation system and Missouri must be ready to match those funds or lose them. Both organizations are asking the area legislators to support the issue, as introduced, as soon as possible."

Among the approximately 30 people attending the press conference were members of the two transportation committees, members of the Chamber and RCGA boards and officials from nearby cities.

Also attending were Reps. Mary Kasten and David Schwab, from Cape Girardeau County, who expressed support for the plan.

Kevin Spaeth, chairman of the RCGA's surface transportation panel, said he understood that many legislators were spending this weekend trying to determine whether their constituents would support a gas tax increase to fund a list of projects that had been distributed.

Spaeth said he hoped Schwab and Kasten would view the turnout Friday as a reflection from the business community that the plan has support.

Spaeth said that in this time of recession, the additional jobs would mean a lot to the state and he urged quick action.

"I would hope that we would not lose federal funding that is available to us right now," said Spaeth.

"We hope you (legislators) will consider lending support to this so we can get jobs in Southeast Missouri."

Freeman McCullah, District 10 engineer for the highway department, held a joint meeting with the RCGA and Chamber transportation committees Wednesday morning to explain the plan. Following their endorsement, both boards of directors for the two organizations endorsed the plan.

At Friday's news conference, McCullah said the plan "offers the state of Missouri and Southeast Missouri a system of highways to build on for the 21st century. The projects that will be funded by this puts Southeast Missouri almost at the crossroads of Missouri."

McCullah contended that the projects scheduled to be funded over the next 15 years would have a greater impact on Missouri than the interstate highway system did. "This provides the grid to supplement the interstate system," he noted.

Having the additional state fuel tax to access new federal funds, will enable Missouri to increase its share of federal gas tax money from about $250 million a year to more than $450 million a year, McCullah said. He added that cities and counties would receive an increase of 50 percent in fuel tax money.

Highway officials have said if the gas tax increase is enacted by Feb. 15, 7,800 additional jobs will be provided in Missouri this year because they will be able to take advantage of the 1992 construction season.

Last year, Missouri spent about $330 million in highway construction, but with the additional money that could grow to around $500 million this year.

The proposal will take its first step through the legislative process this week when the House Transportation Committee holds a hearing on the bill at 2 p.m. Tuesday. The bill could be sent to the floor of the House for debate by the end of the week.

Sponsoring the measure in the House are Speaker Bob Griffin, D-Cameron, who made it a priority of the 1992 session in his opening address last Wednesday; Rep. Don Koller, D-Summersville, chairman of the House Transportation Committee; and W.T. Dawson, D-Independence, chairman of the House Motor Vehicle and Traffic Regulations Committee.

Rep. Kasten said the plan is "an opportunity we can't miss." Although she normally would be reluctant to approve a tax increase without going to the people, Kasten said the fact this is a "user tax" and can bring immediate economic benefits has led her to support the plan.

"You have my undivided support on this," said Kasten. "It means so much to our area."

She noted that many projects local officials have worked on for years are included on the list. One of those is the extension of Nash Road into the Southeast Missouri Regional Port Authority.

Rep. Schwab said he believes the legislature will move quickly on the bill.

"I'm also very excited about this because it means so much to our area," said Schwab, a member of the transportation committee.

Lloyd Smith, chief of staff to U.S. Rep. Bill Emerson, praised the state highway department and state legislature for their quick action to respond to the new federal highway bill.

"We are really somewhat amazed that the Missouri legislative and the highway department have put together this package this quickly," said Smith.

He noted that Emerson would encourage state legislators to take quick action on the plan.

"This is what is needed for Missouri to fully access the federal money available to us," said Smith. "By putting it together this quickly, you have really done a great service to the state of Missouri."