From: Robbie Webber <[EMAIL PROTECTED]>
Date: Tue, 21 Oct 2003 16:19:36 -0500

>
Borrowing less for major transportation projects and rehab sounds OK -
less
debt incurred for big highways. But the part about paying for debt
service out
of general funds instead of transportation $$ seems wrong.

Anyone else have thoughts? 
>

I'm afraid this is already a done deal and it's quite complicated.  It
has to do with the governor's using $550 million from the Transportation
Fund this year to "solve" the state budget deficit.  The Republicans and
the roadbuilders were terribly upset about the governor doing that, since
they live by the rule that the money that's collected via the gas tax and
vehicle license registration fees, and goes into the transportation fund,
ought only be used for transportation purposes (highways for the most
part, of course).

So when Governor Doyle shifted the $550 million to solve the problems
with the general fund, they plotted and schemed to get it back.  What
Doyle must have done also was to raise the debt limit for borrowing for
highways to $1 B, figuring that's how DOT could make up the difference.  

But the Republicans want nothing to do with having to borrow money for
transportation projects when they had the money sitting in the
transportation fund to pay for them already (before Doyle took it out).

The Republicans didn't have the legal basis to force the governor to put
the $550 million back into transportation, but they evidentially did
think they had a case for suing Doyle about his having increased the
bonding limit to $1 B w/o Legislative authorization.

Doyle must have thought they had a good chance to win that case and
embarrass him in doing so, so agreed to having $69.9 million of debt for
the $550 in highway projects paid every year (starting in 2005) from the
general fund (until the full $550 million is paid up I guess), and to vow
never to take public tax money out of the highway fund again for purposes
other than transportation.

This all sound very devious (smelly) to me, too.  The state collects
taxes from other specific purchases (cigarettes; beer, wine, hard
liqueur) without giving all that money back for smoking and drinking
purposes.  So while must the state only use money collected from gasoline
for highway driving purposes? 
http://www.madison.com/archives/read.php?ref=wsj:2003:10:21:285131:LOCAL/
WISCONSIN

And now I see that Dane County and Kathy Falk want to include a
regressive wheel tax of $20/vehicle as an increase in the vehicle
registration fees.  That would make a person who has an old beater and
drives only very infrequently pay just as much as a person who own a
Lincoln Navigator and drives it from New Glarus to Madison everyday to
work.  Doesn't seem fair to me.
Mike

"Tell people something they know already and they will thank you for it.
Tell them something new and they will hate you for it."
-- George Monbiot
http://www.captivestate.com

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