Transportation funding at a crossroads

By Steve Baas – MMAC Senior VP of Governmental Affairs

The state of Wisconsin is in the midst of a long overdue discussion over how to create a sufficient and sustainable long-term revenue stream for the state Transportation Fund. It is a debate that is coming to a head as transportation needs and funding in Wisconsin reach a critical point. ​

MMAC has been and will continue to be at the forefront of this state policy discussion because this issue is not just about transportation or politics; it’s about economics.
 
Manufacturing is the region’s economic fastball – we’re are good at making things. Roads, bridges and highways are the arteries of our economy and if our companies can't efficiently move their products to markets across the nation and points beyond, they are going to move to places where they can.
 
Consider MillerCoors as an example. According to its Director of State Government, Paul Lucas, "All of the beer produced at the Milwaukee Brewery on a yearly basis and shipped to our distributor partners all across the Midwest is shipped via truck. Thus, it is critical that we have a modern, reliable and efficient highway and road system to ensure our beers reach retailers and consumers.”
 
As MMAC works with lawmakers this legislative session to modernize both our transportation and transportation funding system, three perspectives will guide our efforts.

1. Earn the public's trust and confidence. 
   Taxpayers cannot be asked to pay more unless they have confidence the funds are being efficiently used. Several years ago, language was added to the state constitution prohibiting raids on the Transportation Fund for the General Fund. We must build on that progress by considering all possible cost-saving measures — including sales of surplus DOT property, repeal of unnecessary prevailing wage and Wisconsin Environmental Protection Act regulatory mandates, consolidation of federal funds and practical design.
2. Everything must be on the table. 
   While the gas tax and registration fees may be part of the solution, lawmakers should also look at innovative new technologies and options like tolling and other mechanisms that measure vehicle miles traveled that are fair and accurate instruments for raising funds.
3. Seek long-term solutions, not short-term fixes. 
   The transportation funding solution should be sustainable, technologically relevant and sufficient to support the transportation infrastructure of both today and tomorrow.

 
For more detailed analysis of the state transportation funding issue, visitwww.mmac.org/NoEasyAnswers.org

​Consider the facts

• 56% of Milwaukee area roads are rated in mediocre to poor condition.
• Poor roads cost the average Milwaukee area driver $2,060 a year.
• Nearly 1 in every 5 dollars in the state Transportation Fund is currently going to debt service, not to road construction or maintenance.  
• In the last 10 years, revenue from the gas tax has increased by 4% compared to a 20% increase in sales tax and income tax revenues.
• The current DOT budget request is $449.3 million short of the level it would need to fully fund existing Southeast WI freeway mega-projects, including I-94 North-South, I-94 East-West, the Zoo Interchange, I-43 North, and others.
• $264 billion a year in product is shipped from Wisconsin with 82% shipped by truck.
• The annual cost to drive in Wisconsin is low compared to neighboring states.