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The Washington
Post By Lori Montgomery Maryland Gov. Robert L. Ehrlich Jr. proposed raising nearly $250 million for transportation projects throughout the state yesterday by increasing fees and fines on speeders, drunk drivers and anyone who owns a car. Under the plan, which must win legislative approval to take effect, vehicle registration fees would jump from $81 to $128 every two years for most cars and from $108 to $180 for larger cars and SUVs. Moving violations would carry a $50 surcharge on top of the usual fine. And a conviction for drunken driving would come with a new incentive to stay sober behind the wheel: an extra $200 fee. The plan would also dedicate taxes on rental cars entirely to transportation projects instead of making the money available for other state services. Together with previously announced plans to increase driver's license fees and collect more taxes from corporations, Ehrlich's proposal would pump an additional $266 million into the transportation trust fund, the first major infusion of new cash for the state's primary road-building fund in more than a decade. At a news conference in the shadow of Interstate 695 near Baltimore, Ehrlich (R) pledged to use the money to build highway bypasses, fix dangerous intersections and finish other projects aimed at improving safety and reducing congestion on one of the most overburdened highway systems in the nation. "My goal is to develop a transportation network that works for the people of Maryland," Ehrlich said. "Reduce congestion. Improve quality of life. Strengthen our economy. This plan will do all three." Ehrlich, who won election as an anti-tax Republican, is also proposing to raise about $100 million through other fees to help balance the state's budget and pay for cleanup of the Chesapeake Bay. He rejected calls from the state's business community to increase the tax on gasoline to pay for new roads, arguing that Maryland's levy of 23.5 cents a gallon is already among the highest in the nation. Ehrlich also shied away from a proposal to increase fees for titling new vehicles after Democrats derided it as a "car tax." Democratic lawmakers and some business groups criticized Ehrlich's decision, saying higher gas taxes would provide a more reliable source of funds than the patchwork of fees and fines that he has proposed. Surcharges on moving violations and criminal convictions, for example, are notoriously difficult to collect because "you can't make the judges impose it," said Senate Finance Committee Chairman Thomas M. Middleton (D-Charles). Others noted that the governor's package falls short of the $300 million a year that a gubernatorial commission in December said would be needed to cover the state's transportation needs. "The governor's people made a strong case that we need to have $300 million. And it was supported around the state," said Senate Budget and Taxation Committee Chairman Ulysses Currie (D-Prince George's), who served on the commission. "There was support for raising taxes for the transportation trust fund." Ehrlich's funding plan pleased Republican lawmakers, many of whom hail from rural districts where the gas tax hits hardest. Last summer, Ehrlich's transportation secretary, Robert L. Flanagan, tried to convince Republicans that higher gas taxes might be needed. But Flanagan scrapped that effort after many lawmakers rebelled. "Not everyone in this state makes $58,000 a year. In my neck of the woods, it's more like the high twenties. It can add up, especially with the price of gasoline as it is today," said House Minority Leader George C. Edwards (R-Garrett), who represents one of the state's poorest and most sparsely populated regions. Ehrlich's mixture of fines and fees is "broader-based" and more equitable, Edwards said. "It's a pretty good shot in the arm for transportation." Some Democrats accused the governor of avoiding the gas tax to gain political advantage and to strengthen his anti-tax rhetoric. Del. Peter Franchot (D-Montgomery), who chairs the House subcommittee that oversees the state's transportation budget, called the governor's plan "dishonest" and predicted that he will have a tough time selling it to House fiscal leaders. "Why go through the pain of voting for a revenue increase in transportation if it's a third of a loaf?" asked Franchot. Even some of Ehrlich's allies said they were disappointed. Kathleen T. Snyder, president of the Maryland Chamber of Commerce, said she was on hand at yesterday's news conference to "salute" the governor's proposal. But Snyder said the chamber will not abandon its two-year lobbying campaign for higher gas taxes. "The gas tax hasn't been raised in 12 years. At some point, we need to address that," she said.
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