by Thomas Dennison
Staff Writer
Mar. 5, 2004

Legislative leaders call for gasoline tax

ANNAPOLIS -- Senate President Thomas V. Mike Miller Jr. and other top legislative leaders said Thursday that Gov. Robert L. Ehrlich Jr.'s road building plan is "inadequate, unworkable" and "has major problems," while calls for an increase in the gasoline tax grew louder.

On the same day that Ehrlich's $345 million transportation plan was heard jointly by two House committees, leading lawmakers panned the fee- and surcharge-heavy road plan and promised major revisions. The governor's proposal would generate more than $250 million in new transportation money by increasing vehicle registration fees for cars and trucks by more than 60 percent, imposing heavy surcharges on speeding tickets and drunk driving offenses, and accounting maneuvers.

"The governor's transportation plan is not well thought out," said Miller (D-Dist. 27) of Chesapeake Beach. "I don't know how many rich drunk drivers there are in Maryland, but there are not enough to fund roads, bridges and our other infrastructure needs."

Miller said the plan is "dishonest" and has "major problems."

Under Ehrlich's plan, a $200 surcharge would be tacked on to drunk driving offenses to generate $11 million, and a $50 surcharge would be added to moving violations to generate $40 million. An additional $23.50 would be added per year to register cars and $36 would be added for truck and SUV registration to generate $153 million. "Miscellaneous fees" to be collected by the Motor Vehicle Administration would bring in $20 million.

The governor's plan also calls for $32 million from the car rental tax to go to the transportation trust fund, as would $10 million from closing the so-called Delaware loophole and $54 million from unexpectedly higher than budgeted titling tax and gasoline tax receipts.

The litany of revenue raisers has caused many in the legislature to characterize the plan as a sham based on overly optimistic projections.

House Judiciary Chairman Joseph F. Vallario Jr. (D-Dist. 27A) of Upper Marlboro, a lawyer who defends drunk drivers, said the surcharges are not likely to pass muster with the General Assembly, and judges are not likely to enforce them.

"These additional fines are not something that are appropriate for building roads," Vallario said, adding that his committee has done an analysis that showed the enforcement of the additional fines could cost several million dollars.

Transportation Secretary Robert L. Flanagan defended the governor's plan and was optimistic that the legislature would pass it. He said the surcharges that Miller, Vallario and other legislative leaders describe as unstable are appropriate ways to raise money for highways.

"There is a clear nexus between the governor's effort to improve highway safety by using an additional surcharge on drivers who create unsafe conditions on highways," Flanagan said after Thursday's joint hearing before the House Ways and Means and Environmental Matters committees. "The surcharges are a very appropriate way to raise money for highway construction designed to improve safety."

Joining Miller, House Speaker Michael E. Busch (D-Dist. 30) of Annapolis and Senate Budget and Taxation Vice Chairman Patrick J. Hogan (D-Dist. 39) of Montgomery Village said a more logical way to raise transportation dollars is an increase in the 23.5-cent gasoline tax, which has not been raised in more than a decade.

Busch, Miller and Hogan all agreed that a gasoline tax would capture out-of-state dollars and is more progressive because the more drivers drive, the more they pay at the pump.

"The gas tax is the ultimate user fee," Busch said.

"The governor's plan puts 100 percent of the burden on Marylanders," Hogan said. "That's not fair or very smart. Why shouldn't we allow people from out of state help to pay for our roads" by raising the gas tax.

The Greater Washington Board of Trade canvassed lawmakers this week, emphasizing that Ehrlich's efforts to raise road dollars should be applauded but saying that raising the gasoline tax is fairer. The Greater Baltimore Committee also supports a gas tax hike.

"The Board of Trade would like to express its enthusiastic support for a funding source not included in this legislation," said Len Foxwell, lobbyist for the Greater Washington Board of Trade. "An increase of up to 10 cents in the state's gasoline tax is the most logical, equitable and stable way to replenish the transportation trust fund."

The gasoline tax has not been put in the same category as increasing the sales or income tax in terms of guaranteeing a veto by Ehrlich (R). The governor never ruled out raising the gasoline tax during the 2002 campaign; only recently has he talked negatively about it.

Ehrlich did not include the gasoline tax in his transportation plan out of deference to the opposition in the House and Senate Republican caucuses and to rural Democrats.

"It's a terrible idea," said House Minority Whip Anthony J. O'Donnell (R-Dist. 29C) of Lusby.

There are some in the administration who have said privately that a gasoline tax would not be a deal breaker if it is folded into the transportation plan because the governor could blame the tax on the Democrats.

Miller, however, said Ehrlich needs to "stop politicking and start leading."

"When you look at the needs of the state, it's obvious that people should use their political capital and push for a gas tax increase," he said.

Ehrlich would not be hurt politically if he held his nose and supported a gas tax increase, Miller said: "He would actually look like a leader."