Governor Proposing Truck Tolls to Fund RI Infrastructure Bank
Sunday, May 24, 2015
Kate Nagle, GoLocal Contributor
Governor Gina Raimondo is eyeing tolls on trucks as part of the funding plan for a state Infrastructure Bank, which has been touted by Raimondo since the campaign as a way to help cities and towns fund critical infrastructure upgrades.
According to multiple sources, including State Senator Nicholas Kettle, the possible funding stream would go towards a revenue bond.
"So what I've been hearing is that there's an effort to get a $700 million revenue bond, and to pay for that, they want to set up tolls for tractor trailer [trucks]," said Kettle. "I was told this is something that other states do. They've got to get revenue to a certain level so that they can the get more federal funding."
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Following the recent revenue estimating conference which showed a sizeable surplus for the current fiscal year as well as the next, Raimondo said that had these revenue projections been available in March whens she submitted her budget proposal she would have "used some of the extra revenue to make certain additional investments" in things like the School building Authority, and Infrastructure Bank.
"My assumption is that we'd get more specifics should this come out of House Finance," said Kettle. "As to the particulars, if it would be through a transponder like EZ Pass, where that would occur, would it be all trucks coming through the state, again, we'd know more once this comes out."
The Speaker's office said that any such proposal "wouldn't come from the House." "It would be part of the Governor's proposal," said Larry Berman, Spokesperson for Speaker of the House NIcholas Mattiello.
The Infrastructure Bank as outlined by Raimondo would expand and manage the Municipal Road and Bridge Revolving Fund, establish a road and bridge funding formula, create a green bank, created the school building authority, and house expertise on "best practices" for infrastructure solutions."
In her proposal, Raimondo noted that bonds were on the table as a funding option, stating that "fully funding the Municipal Road and Bridge Revolving Fund will cost approximately $40 million over the course of 20 years. This money can come from a variety of sources, including bonds, private capital, or state appropriations."
"I don't have anything on specifics at this time," said Raimondo spokesperson Marie Aberger. "We did the rollout for the bank, but in terms of anything new, I don't have that right now."
Tolling on the Table?
Last year, the issue for tolls for all vehicles on the Sakonnet Bridge was ultimately dismantled -- literally.
Rhode Island Governor Lincoln Chafee ordered the Rhode Island Turnpike and Bridge Authority to stop tolling on the Sakonnet River Bridge on June 20, 2014 following the signing of the FY15 budget. Aquidneck Island business owners were concerned that tolling on the bridge would be devastating to the local economy.
The Rhode Island Trucker's Association said that they would have "serious concerns" if a toll were placed on tractor trailer trucks.
"We've been making some calls, but we haven't gotten any details," said Jeff Taylor, a lobbyist with the RI Truckers Association. "I don't know how they could do it, for starters. I would think the state would have to appeal to the [federal government] if they wanted to go after trucks on the highways."
"There are plenty of other options for coming up with a funding source, of which we're willing to have discussions about," said Taylor. "Truckers recognize that infrastructure problems are there, and we're willing to work. But tolling doesn't work, it's inefficient, with its own infrastructure costs, administrative costs, and third party managers."
Kettle said that should a proposal come forth, his primary concern is risk to taxpayers.
"I want to make sure there's low-risk to the taxpayer," said Kettle. "If there's a revenue bond involved, that doesn't require voter approval. They are used regularly by quasi [public agencies]. If a proposed toll that's going to pay for it that doesn't hit everyday Rhode Islanders, I might consider it, but again, we'll have to see."
Kettle said that he had voted against last year's infrastructure proposal.
"I voted against the proposal last year, it keeps whacking the people," said Kettle. "We're paying already, and certainly we've got to do something about roads and bridges. Obviously, no one liked the Sakonnet tolls last year."
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