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Wisconsin GOP unveils plan to raise car fees, increase borrowing

Associated Press

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MADISON, Wis. (AP) — Wisconsin Republicans sent a plan to the Legislature’s finance committee Thursday to scrap Gov. Tony Evers’ transportation budget and instead fund road work through a combination of title and registration fee increases and new borrowing.

Evers’ plan called for generating nearly $624 million in new revenue for road projects over the 2019-2021 budget. The centerpiece of his proposal was raising the gas tax by 8 cents per gallon and increasing it annually to account for inflation. The governor also called for raising heavy truck fees by 27 percent and for borrowing $338 million.

Republican leaders spent most of the day Thursday in closed meetings trying to iron out an alternative plan. Rep. John Nygren and Sen. Alberta Darling, co-chairs of the finance committee, finally laid out the details of the GOP proposal around 5 p.m.

Their plan calls for spending an additional $483.7 million and they scrapped the gas tax and heavy truck registration fee increases. Instead, they would raise title fees by $95 to $164 and increase the $75 registration fee most car owners pay to $85. The GOP plan includes $326 million in borrowing.

“We’re listening to our constituents, who said ‘fix the damn roads,‘” Darling said, a play on Evers’ campaign rallying cry. Evers tweeted the phrase not long before Nygren and Darling announced the GOP plan.

“We don’t have to reinvent the wheel here, folks. Let’s pass The People’s Budget transportation plan,” the governor tweeted .

The finance committee was expected to vote Thursday night to erase Evers’ proposal from the state budget and insert the GOP plan. Republicans control the committee, making the vote little more than a formality.

Earlier in the day, Democratic members on the committee tried to make a case for the gas tax increase. They acknowledged the increase isn’t popular but insisted it’s the fairest way to raise money for road work because out-of-state drivers would have to pay it as well as in-state drivers.

Wisconsin currently imposes a 32.9-cent per gallon gas tax, 11th highest in the country. Evers’ proposal would move the tax into the top 10 based on figures compiled by the Tax Foundation.

Transportation funding has long divided Republicans. Assembly Republicans have called for finding new revenue sources to cover the increasing expense of building and maintaining roads and have said they’re open to a gas tax increase. Senate Republicans have balked at that idea. The impasse between the two houses delayed passage of the last state budget until September 2017, nearly three months after it was due.


Follow Todd Richmond on Twitter at https://twitter.com/trichmond1