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Drop in fuel taxes has transportation officials calling for more toll roads

By James Call

http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-989316.mp3

Tallahassee, FL – A collision between taxes and technology has opened a pothole in Florida's road building budget. James Call reports as vehicles become more fuel efficient they require less gasoline. And while that is good news for the consumer it is bad news for the state because drivers are paying less in fuel taxes.

State economists have cut 900 million dollars from the Department of Transportation's five-year work plan. Chief economist Amy Baker cites three reasons as to why fuel tax collections are down. A sluggish economy means people are less willing to travel.

"The second reason is that we are looking at very high gas prices and that tends to make people economize more and third and maybe a longer term issue is as you see more hybrids and other cars that actually produce greater fuel economy."

An economic recovery takes care of the first two issues but better fuel efficiency is a trend that is expected to continue. The Obama administration announced plans in August to raise fuel economy standards to 54 mile per gallon by 2025. At the state capitol Florida Transportation Secretary Ananth Prasad has been telling lawmakers that although people are using less gas they are still driving as much as ever.

People we're looking at numbers of how many miles traveled, people have driven but the trend has been as people are driving the same amount but consuming less fuel because of fuel efficiencies. The wear and tear on the system is the same but it is not producing enough revenue.

Prasad's dilemma surprised Mark Moncrief a marketing director for a home health care company. He puts about 300 miles a week on a hybrid vehicle. And says the company's switched to a combination electric/gas powered vehicle to save money.

"I mean you are looking at 50 miles to the gallon, it holds 10 gallons we can get anywhere from 500 to, based on how you drive close to 500 miles to a tank of gas. It's a huge savings a huge savings in fuel costs."

The huge savings produces a loss for the transportation trust fund. It pays to build and maintain roads with money from a tax on fuel. Prasad says that system is no longer sustainable. Since fuel tax revenue is down Prasad is proposing that any new construction on Interstates or bridge crossing be financed with tolls.

"I believe it will take traction this year. The discussion will be are we going to toll every road no. not every road can be tolled. Are we going to take an existing free road and toll road it no we are not going to take an existing free lane and tolling it? Just as new capacity gets added on we want to take a look at diversifying the revenue source.

When Moncrief's company moved to hybrid vehicles he said it never entertained the idea that by cutting expenses it would play a role in changing how Florida pays for roads.

"And I don't think they were looking that far ahead and anything I think they were just trying to save some dollars from a business standpoint in fuel."

In other words if there are more tolls in the future, Moncrief will cross that bridge when he gets there. Lawmakers may entertain other proposals instead of more tolls. Possibilities include a user fee based on mileage, diverting sales taxes on vehicles and repairs to roads and an increase in the fuel tax. Which idea gains traction in the upcoming Legislative session remains to be seen.