7/14/09-Confronted with a mounting backlog of road repairs, lawmakers in Maine have renewed their efforts to boost the fuel taxes to alleviate some of the funding crisis.
Less than a month after the Maine Legislature opted against raising the state’s fuel tax by 5 cents per gallon, the Transportation Committee gathered to hold the first of two summertime meetings to look for ways to pay for hundreds of miles of paving, patching and repairs needed on state-maintained roads.
As a result, the highway budget approved by lawmakers for the fiscal year that started July 1 includes enough money for maintenance paving on 230 miles of roads but nothing next year.
Among the long-term options to draw consideration during the first meeting this summer is using more bonds, routing more money back to the DOT, reducing the number of roads maintained by the state and once again looking into increasing fuel taxes.
Currently, the state’s per gallon tax on diesel is 30.7 cents, and 29.5 cents for gas. It is estimated that every penny increase generates $7.2 million in revenue for the state.
Advocates for the higher tax rates say they would ease a 23 percent drop in fuel tax revenues. Others say that despite the aid of federal stimulus funds being applied to road and bridge work, the gap between available funds and the cost of projects will only expand.
Opponents say with the poor economy now is not the time to increase the burden on consumers.
The transportation panel is expected to discuss specific solutions at its next meeting, which is scheduled for Aug. 11. If lawmakers can reach agreement on a proposal, it could be ready for consideration by the House and Senate if a special session is held this fall.

6/1/09-Mindful of declining fuel tax revenues and slumping available funds for road work, a legislative panel in Maine is considering efforts that would phase in increases in the state’s fuel tax by as much as 11 cents.
Currently, the state’s per gallon tax on diesel is 29.6 cents, and 28.4 cents for gas. The tax rates are indexed to inflation. The distinction allows the tax rates to be adjusted annually.
During what is supposed to be their final meeting of the session, the Transportation Committee is scheduled to discuss proposals Monday, June 1, that also would stop tying the tax to inflation.
Advocates for the higher tax rates say they would ease a 23 percent drop in fuel tax revenues. Others say that despite the aid of federal stimulus funds being applied to road and bridge work, the gap between available funds and the cost of projects will only expand.
Opponents say with the poor economy now is not the time to increase the burden on consumers.
Transportation Committee clerk Kathie Bilodeau said any effort to make changes to the tax rates must emerge from committee on Monday. The panel is expected to wrap up their work for the year when the hearing ends.
“They’ll be finishing up on everything, unless there’s another extension,” Bilodeau told Land Line.
If the committee decides to pursue tax increases support in the Legislature is not assured. House and Senate Democrats, which are the majority party in both chambers, have given tentative support for the plan. But they said they won’t move forward without bipartisan support.
While Gov. John Baldacci has opposed tax increases in the past, the governor said he would consider a proposal if it has broad bipartisan support, the Portland Press Herald reported.