Governor visits Cape to tout fuel tax increase

On a hill overlooking the ongoing Center Junction interchange project, Gov. Mike Parson ceremoniously signed Senate Bill 262 into law Tuesday.

Parson visited Cape Girardeau as part of a statewide tour to tout the fuel tax legislation. The measure will raise the tax in 2.5-cent-per-gallon increments each year, starting in October, through July 1, 2025.

Missouri's current fuel tax is 17 cents per gallon, one of the lowest rates in the nation.

In order to draw support for the tax hike, crafters included a rebate option, allowing individuals to apply for a full refund of the tax if they can show receipts.

Parson told the audience of Missouri Department of Transportation employees, local construction officials, elected leaders and others fuel taxes fund critical spending.

Gov. Mike Parson ceremoniously signs Senate Bill 262 in Cape Girardeau on Tuesday as state Sen. Dave Schatz, president pro tempore of the Senate, looks on. The legislation will raise the state's fuel tax to fund infrastructure projects.Rick Fahr ~ Southeast Missourian

"When I first became governor, I asked myself what was the one thing we could do to move the needle," he said. "There are two things, I said at the time -- it's infrastructure and it's workforce development. If you get those two things in place, which we have over the past three years, we can reap the benefits."

Parson touted the rebate option, saying the process is simple while adding he hopes the state's residents will support infrastructure spending through the tax.

Officials expect the tax to generate up to $450 million annually, with about one-third of the total going to cities and counties for local projects.

Patrick McKenna, director of the state Department of Transportation, said the tax hadn't been adjusted in 25 years, and because of that the state had lost half of its transportation project purchasing power. That will change with the additional funding.

"Infrastructure itself ties our communities together, but it binds us in safety, in economic development and in quality of life for the citizens we all serve," he said.

Other speakers at the event included state Rep. Becky Ruth, chairwoman of the House transportation committee. She noted the legislation includes a task force to study electric vehicles and how their growth could affect tax revenue for highways and bridges.

"Not only are we just looking at today and a few years from now, but well into the future and transportation funding is going to be impacted in the future," she said.

State Sen. Dave Schatz, president pro tempore of the Senate, touted state Rep. Jamie Burger of Benton, Missouri, for coining an easy-to-understand phrase regarding the infrastructure spending need -- "the longer we delay, the more we decay."

"And that is so true," Schatz said.

Federal spending

After the signing, Parson said he is uncertain what benefits might be in the offing for Missouri with regard to a potential federal infrastructure bill.

"It's still too early to tell what all might be in that. I hope most of it will be for roads, bridges, airports, rail -- things that really make a difference in people's lives," he said.

He added he opposes "federal overspending" and, "Right now, I think it's really important that Missouri takes care of itself."