SENATE COMMITTEE PASSES ALTERNATIVE TO "COMPROMISE" TRANSPORTATION FUNDING BILL

Late yesterday, the Senate Finance Committee rejected (See Vote) (11-4) the Republican "compromise" funding legislation. SB 1417, the companion "compromise" legislation to HB 3202, would have raised more than $2 billion in transportation funding over the next six years, using primarily general funds and bonds.

The Senate Finance Committee then passed an amended version of SB 1379 (Note: The final revision of this bill may not be available yet) to parallel the package offered in the "compromise". SB 1379, as passed by the Committee, keeps many of the provisions of SB 1417, such as the bad driver fees and the regional funding plans, but removes the sales tax exemption on gasoline (thus gas would be subject to sales tax), providing more than $500 million a year in new sustainable funding for transportation. This new funding would take the place of the general funds allocated in the SB 1417. The bond package stays in place, but is to be used by the CTB for projects "of statewide significance".

New revenues would be distributed as follows:

• 20% to localities, based on vehicle registration, to be used for transportation ($100 million)
• 60% ($500 million) of the funds would go to maintenance which would replace the current maintenance drain on construction funding.
• 15% would go to transit.
• $50 million a year to rail.

Complete details of the amended SB 1379 can be found at: SB 1379 Details

The Senate Finance Committees new alternative to the "compromise" will move the Senate floor next week where there is likely to be a debate on whether the Finance Committee followed proper procedure in amending the bill.

Some observers say that the failure of SB 1417 means the failure of transportation funding legislation this session because the House has said it will not accept any increases in taxes. Others believe that this move now puts three proposals in place: the Governor's, the House "compromise" package, and the Senate Finance Committee's alternative.

Several House Democrats said that they are working on a compromise version of House and Senate plans that would limit the use of existing state revenue without relying on a sales tax on gasoline.  BOTTOM LINE:  Keep the pressure on your legislators to provide long-term, sustainable transportation funding THIS SESSION.

The simulcast recorded horse races legislation emerged from the Senate Finance Committee on Thursday. Forty nine percent of proceeds (after payouts) would go to the Commonwealth Transportation Trust Fund. Although it was defeated 54 to 42 on the House floor, several lawmakers say it is likely to return.