Thursday, July 19, 2007

Economic Growth means money for roads

The US 50 Association met on Wednesday in Garrett County, MD. Yes, I know this is a West Virginia blog, but the US 50 Association is made up of 5 West Virginia Counties. It was just Maryland's turn to host the event.
This meeting had a featured speaker of Joe Deneault of West Virginians for Better Transportation. Joe gave a very detailed report on the state of roads, funding, and the future. The future is not good, and as everybody knows it is funding. The state has more than 1/3 of its bridges needing replaced, and 30% of the roads are substandard and no money to make the fixes.

The discussion turned to funding sources. Mr. Deneault stated that the public indicated that no increase in taxes would be acceptable. I agree, there is too much government waste in this state to require a tax increase. If we can get spending under control in Charleston, we will not need to increase taxes. West Virginia has the highest number of state employees per capita, than any other state. That means all of us that work in the private sector pay for a government that can't service our needs. It is time for a change.

When asked what other states have done for highway funds, the response was Toll Roads in populated areas, Tax Incremental Financing in growth areas, Private-Public Partnerships on toll roads, and selling toll roads to private companies. Toll Roads seem to dominate the idea to get around taxes. Toll Roads are still a tax, they are a use tax paid each time you use it. Private-Public partnerships were called Corporatism by Benito Mussolini and I'm not sure that is Mussolini is a good roll model for West Virginia. Selling the toll road to a private company would be a good idea. The money sink of Tamarack would no longer be a drain on the state. When government tries to run a business it usually ends up costing the taxpayers money.

The last is the TIF districts. I have mixed feelings about these. I think the can be good for small targeted projects. Mineral County is using a TIF district to build a traffic light for the new hospital south of Keyser and that makes sense. Unless of course the hospital gets sold to a non-profit at which point the county will get stuck with bill, because non-profits don't pay taxes.

The answer to increase the money available to the WVDOH is simple. Cut the waste in other parts of government and make the changes needed to attract businesses to the state. We are dead last in best states to do business. When those companies locate in other states, they pay no taxes here to use on the roads.


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