MURI CITES NEED FOR TAX HIKE

CAPE GIRARDEAU - The chief engineer of the Missouri Highway and Transportation Department declared Thursday that the next gas tax increase proposal submitted to voters should be large enough to make a big dent in the massive highway needs facing the state.

Speaking at a press conference on highways, sponsored by the Missouri Society for Newspaper Editors in Cape Girardeau, Wayne Muri suggested that a major tax proposal will have to be considered soon.

The chief engineer pointed out that studies have shown the state will need $5.5 billion over the next 10 years to put its highway system in proper condition.

Muri said increased revenue for highways needs to be in the range of $400-500 million a year. With a 1-cent gas tax bringing in $23-24 million a year, he noted, "the only way to get there is for federal financing to be part of it."

Changes in the way funds are allocated in the federal highway bill, scheduled to be reauthorized next October, could bring Missouri an additional $200-300 million a year, Muri said. That could be matched with state funds from a gas tax increase and other sources such as increased license fees.

In 1987 Missouri increased its gas tax by 4 cents with Proposition A, but the 11-cent tax is still only about half of what most nearby states are charging.

Although Proposition A will enable the state to fund many badly needed projects such as a new Mississippi River Bridge here, Muri explained that traffic is much higher than highway officials had projected and the needs list is growing.

"It really isn't a question of identifying needs, it is a matter of selecting which needs should have priority," remarked Muri.

He acknowledged that there are many other pressing needs in Missouri in areas like education and social services, but stressed a good transportation system is essential to economic development and the state's overall quality of life.

Muri pointed out that even the federal government has recognized the importance of transportation as a priority. In the current budget, despite efforts to cut back and reduce the deficit, transportation funding went up about 19 percent and there was a 30 percent increase in aviation funding.

Discussing the varied needs facing Missouri, Muri observed: "Ideally, one all inclusive game plan to accomplish all these needs would be proposed, but my gut feeling is it won't happen that way. The people don't want to vote on a package of take it or leave it."

He stressed the taxpayers want to know where new tax dollars are going. "They want to know what will the money go for - what is the plan?"

Passage of a 5-cent gas tax by Congress to help reduce the deficit and the overall condition of the economy makes 1991 a bad year to go to the people with a state gas tax hike. "This year is tough, but in the next two to three years the possibility of doing something very significant is quite high," said Muri.

He added that there seems to be a growing sentiment in the state over the need for additional funding to improve highways, and 1992 may be a good year to ask voters to consider a plan.

Until Congress authorizes a new highway bill this fall, Muri said Missouri will not know how much federal funding it will receive. As a result, it would not be possible until next year to tell voters exactly what the funds would go for as was done in the Proposition A campaign.

Several groups of county officials have threatened to oppose any gas tax increase unless it contains a significant increase for county roads and bridges, which is not included in the $5.5 billion highway need figure for the state.

"We must come to some agreement with the counties," Muri conceded, but he pointed out that two-thirds of the roads maintained by the state are the kind maintained by counties in many other states. He added that any gas tax increase would automatically raise the share to counties since they get 10 percent of the funds collected.

Muri noted that only 6 percent of the traffic is on county roads. By comparison, city-maintained roads have 22 percent of the traffic, but get only 15 percent of state gas tax revenue.

"The user fee principle just doesn't work with counties," said Muri. "Part of their additional funding will have to come from the property tax and sales tax."

Toll roads appear to be a part of the future in addressing highway needs of the nation, Muri said. He predicted the new federal highway bill will enhance toll roads.

"Toll roads won't solve the problems of this state, but they will be a part of the solution," observed Muri. Toll roads make a lot of sense for some areas."

Legislation in Missouri to authorize toll roads was defeated last year, but will be considered again this year.