FINAL BILL REPORT
HJM 4028
BYRepresentatives Schmidt and Walk
Opposing efforts to increase federal fuel taxes for deficit reduction.
BACKGROUND:
The state of Washington relies heavily on state and federal user fee revenues to build and maintain a system of highways, roads and streets, and the state ferry system. For over 80 years, the "user fee" concept has dedicated fuel and transportation-based taxes to the construction and maintenance of our nation's highway and transportation facilities. The establishment of the federal Highway Trust Fund in 1956 confirmed the relationship between fees collected from highway users and the subsequent dedication of these revenues to meet state transportation construction and rehabilitation needs.
In 1982, the federal fuel tax was increased to 9 cents per gallon, all of which is earmarked for transportation expenditures. At the time, the increase was accepted by the states as part of a partnership to develop a national transportation network. However, ensuing delays and reductions in the apportionments of Highway Trust Fund monies to the states have jeopardized this federal-state relationship. As a result, 27 states considered legislation to change their motor fuel tax structure in an effort to supplement dwindling federal highway funds in 1986.
Efforts are now being made in Congress to increase federal fuel taxes to reduce the federal deficit. This move is considered by the states to be an unwarranted and unprecedented diversion of a traditional transportation funding source.
SUMMARY:
The memorial declares that efforts currently underway by Congress to increase federal fuel taxes to reduce the federal deficit is an unwarranted diversion of a traditional revenue source for transportation programs. The memorial also strongly opposes any effort to increase the current fuel tax level for deposit in the General Fund, and any effort to increase such taxes at all in the absence of full expenditure of current Highway Trust fund receipts.
VOTES ON FINAL PASSAGE:
House 87 0
Senate 43 5