GOP offers new roads plan

State legislative Republican leaders today unveiled a counteroffer to Democrats’ plan to pump hundreds of millions into road and bridge projects and said Democrats must compromise on their plan in order to get it through the legislature.

The announcement came just hours before the Democrats’ plan – Senate Bill 108, known around the Capitol as FASTER – was scheduled for its first committee hearing. The Republican leaders said GOP lawmakers do not support FASTER in its current form, and they expected the three Republicans on the seven-member Senate Transportation Committee to vote against it this afternoon.

“The Democrats frankly need some support on this,” said Senate Minority Leader Josh Penry, R-Grand Junction. “And we’re not going to give it to them willy-nilly. What we want is big, meaningful tax reform.”

FASTER, likely the most significant bill introduced so far this session, would raise more than $200 million annually for road and bridge construction and repair projects by increasing annual vehicle registration fees and rental car fees. The registration fees an average driver pays would increase by $32 in the first year and by another $9 the year after.

The Republican plan would “significantly” cut the proposed annual vehicle registration fee increase in the Democrats’ plan, though the actual amount of fee increase in the Republican plan has yet to be settled on, Penry said.

The Republican plan would also direct tens of millions of general fund dollars – money that comes into the state through existing tax revenue streams – to transportation projects and would step up the amount each year as the economy improves.

And, Republicans would take 25 percent of severance tax money – which is paid on oil and gas drilling – and put it into road projects in areas hardest hit by energy development. Currently, 8.5 percent of severance tax dollars go to road projects in those areas.

Finally – and perhaps most significantly – Republicans have pitched a companion plan to phase out the business personal property tax, which House Minority Leader Mike May, R-Parker, said keeps businesses from relocating to Colorado.

“We’re looking for an opportunity to make some real reform that will create jobs not just now but later too,” May said.

Penry and May said they made their offer to Democratic legislative leaders and Gov. Bill Ritter in meetings Monday afternoon and this morning.

FASTER’s two sponsors –Sen. Dan Gibbs, D-Silverthorne, and Rep. Joe Rice, D-Littleton – said they are hopeful they will be able to reach a consensus this session to fix the state’s transportation system, something both parties list as a priority. But both Gibbs and Rice also greeted the new Republican plan with something less than enthusiasm.

Gibbs said putting more severance tax money into transportation could mean cuts to important wildfire protection or water quality projects.

“You kind of have to weight what the severance tax money is being used for,” Gibbs said.

And, while Rice said Republican’s ideas are a “serious proposal”, he said this year’s tight budget will make it extremely difficult to find general fund money to put into transportation.

“The real problem is that money’s not here right now,” Rice said.

Gibbs said FASTER will likely undergo changes over the next several weeks as lawmakers continue to negotiate, but he said he didn’t plan to offer any amendments to the bill in committee today. He said he’s confident he has the votes to get it out of the Senate.

But Penry doubted that, saying some Democrats are also concerned about certain provisions in the bill and the amount of fee increases it proposes.

“I don’t think they can pass it,” Penry said.

Rice, though, said he thinks continued negotiations will ensure the bill’s success.

“There’s still room to talk and consider,” Rice said. “I still think there’s room to get to something meaningful.”

FASTER vs. the Republican plan announced Tuesday:

FASTER:

-         Increase in annual vehicle registration fees and rental car fees

-         Will bring in an estimated $214 million in its fist year and $265 million every year after that

-         Bond against the new revenue to get money for projects quicker

-         Put $10 million into mass transit projects

-         Pilot projects to study doing away with the state gas tax and instead taxing people based on how many miles they drive

-         Let local governments consider tolling existing roadways

Republican plan:

-         Smaller increase in vehicle registration fees

-         Divert general fund money, increasing annually, to transportation projects

-         Use 25 percent of severance tax dollars for road projects in drilling-impacted areas

-         Uncertain how much it will bring in total but Republican leaders say it will be hundreds of millions over time.

-         Bond against the fee increase and general fund dollars to get money for projects quicker

-         No mileage-based tax pilot projects

-         No tolling

-         Companion proposal to phase out the business personal property tax

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