The roads package was hammered out in talks between House and Senate leaders and the Beshear administration over the past few weeks and has gained bipartisan support. However, the only representatives to vote no Friday were all Republicans. Rep. Mike Cherry (D-Princeton) was one of 64 Democrats and 18 Republicans to support the measure.
The road plan would commit to significant spending – some $3.7 billion – to give a major boost to road building across the state, which has slowed markedly in the current recession. Of that money, some $400 million would come from issuing bonds, and another $400 million from the recently passed federal stimulus package. The balance will come from the state road Fund, which is now facing a difficulty also addressed in the bill – falling revenue.
The road plan would commit to significant spending – some $3.7 billion – to give a major boost to road building across the state, which has slowed markedly in the current recession. Of that money, some $400 million would come from issuing bonds, and another $400 million from the recently passed federal stimulus package. The balance will come from the state road Fund, which is now facing a difficulty also addressed in the bill – falling revenue.
Here's why: The state gasoline tax raises money for the road fund, which is dedicated exclusively to highways and bridges and road maintenance across the state. The gas-tax rate is based largely on the wholesale price of gas. Without going into the math of it, a portion of the tax is variable, so rates go up periodically as the price goes up, rates drop as the price goes down.
Because gas prices have plummeted dramatically since last summer, to under $2 a gallon from a high of over $4, the tax is scheduled to be cut by four cents a gallon April 1. Those four pennies would cost the road fund – already strapped for cash – some $128 million in lost revenue. One legislative leader said the potential loss of that revenue would be 'catastrophic.'
To fix that, the roads package passed by the House keeps the four pennies and freezes the gas-tax rate at its current level, 22.5 cents per gallon.
Proponents say the vigorous building plan will not only create jobs related to the construction work itself, but be a long-term economic stimulus by encouraging business and industry to remain or locate in areas well-served by good transportation
Because gas prices have plummeted dramatically since last summer, to under $2 a gallon from a high of over $4, the tax is scheduled to be cut by four cents a gallon April 1. Those four pennies would cost the road fund – already strapped for cash – some $128 million in lost revenue. One legislative leader said the potential loss of that revenue would be 'catastrophic.'
To fix that, the roads package passed by the House keeps the four pennies and freezes the gas-tax rate at its current level, 22.5 cents per gallon.
Proponents say the vigorous building plan will not only create jobs related to the construction work itself, but be a long-term economic stimulus by encouraging business and industry to remain or locate in areas well-served by good transportation
