Senator opposes fuel tax hike

LINCOLN (AP) -- A construction industry group and others who think Nebraska must maintain, improve and expand its highway system are pushing for higher fuel taxes, a new fee or anything fiscally sound that might raise the millions needed.

They fear that neglecting the concrete paths for trade and travel would be too costly for Nebraska's economic future.

"Nebraska's future rides on its roads," said Curt Smith to the Kearney Hub. He's executive director of the Nebraska Chapter of the Associated General Contractors. He's suggested an increase of 10 cents a gallon atop the state's current variable rate of 27.1 cents a gallon.

But a key state legislator said Friday that tax increases are not the answer.

"I don't like the idea," said Sen. Deb Fischer, of Valentine. "I live in rural Nebraska. To make a big increase like that in one year, I just don't think that's feasible."

Department of Roads director Monty Fredrickson told state legislators earlier this month that over the next 20 years, Nebraska must spend $9.2 billion for state highways — a figure that could climb to $13.2 billion with inflation.

In December last year, a legislative report said the state only may be able to cover about $6.4 billion.

The 60-page report said Nebraska's heavy reliance on the fuel tax has created a fiscal crisis because the revenue declines in part because people are driving less and vehicles are getting miserly with fuel.

The report came from Sen. Fischer's Transportation and Telecommunications Committee and included outlines of 31 tax and fee hikes Nebraskans suggested during a series of public hearings.

Fischer has promised to introduce legislation this coming session to address the revenue problem.

That plan won't include tax increases, she said Friday.

"I don't believe that the gas tax is sustainable any longer to build our roads," she said, again citing Nebraskans' drops in miles driven and increases in the fuel efficiency of their vehicles.

The state needs a large source of revenue if its leaders are "truly going to address the state's highway needs," Fischer said.

"If we as a state are not going to fulfill a core responsibility of government, then we need to be honest about it," the senator said.

She intends to lay out her plans before the legislative session begins in January, but she would give no hint of what they might contain.

The backdrop for that unveiling will be red with projected revenue deficits. The state economic forecasting board has forecast a $1.4 billion budget gap starting next summer, through mid-2013.