SHERIDAN — Slowly but surely, the Wyoming Legislature’s Joint Transportation, Highways and Military Affairs committee is generating solutions for the $354 million annual funding deficit for the Wyoming Department of Transportation.
During a meeting in Rawlins Wednesday, the committee decided to forward two bill drafts for consideration at its November meeting.
First is a 15-cent fuel tax increase from 24 cents to 39 cents by July 1, 2024. By that date, 15 cents per gallon of the taxes collected will be spent exclusively on highway construction, repair or maintenance of WYDOT’s assets.
While no fiscal note has been calculated for the draft bill at this time, its financial impact could be considerable. Earlier this year, the Legislature considered House Bill 26, which would have increased the fuel tax from 24 cents to 33 cents.That nine-cent fuel tax increase would have generated an additional $61.47 million with $40.24 million going to the state highways as managed by WYDOT. Despite receiving support from the House’s Appropriations and Transportation committees, the bill was not considered by the House or Senate during this year’s session in March.
Currently, Wyoming is ranked 38th in gasoline tax and diesel tax, according to the American Petroleum Institute, and the state has lower fuel taxes than every surrounding state, with the exception of Colorado, which is at 22 cents per gallon.
Katie Legerski, executive director of the Associated General Contractors of Wyoming, spoke in favor of raising the fuel tax.
“We are in a situation right now where WYDOT can’t apply for any additional funds or grants at the federal level because they do not have the state funds to match that,” Legerski said. “This bill would go a long way in assisting that... We still need a mechanism for generating state dollars to assist us in going after federal grants and funding.”
Rep. Jerry Obermueller, R-Casper, proposed another potential funding solution: reducing the amount of severance taxes the state contributes to its Permanent Mineral Trust Fund by 1% — or roughly $128 million in the current biennium — and investing that percent in the state highway system. That percent would be set aside in perpetuity until future legislatures decide to alter the legislation, Obermueller said.
“The idea is right now is just not a good time to be saving more than the constitution requires,” Obermueller said. “I’m asking to go back and return to a constitutional model for this fund for now…The leverage (of those dollars) in the highway fund is greater than we would get in the permanent funds right now.”
The committee voted unanimously to draft a bill to this effect for consideration at its next meeting Nov. 2-3 in Cheyenne. Sen. Jim Anderson, R-Casper, said the idea made sense in light of the current funding situation.
“It seems like a rational idea that if you’re having trouble with your budget, you don’t put quite as much into savings as you used to when you had a lot of money,” Anderson said. “So I like the idea.”
Committee co-chair Rep. Donald Burkhart, R-Rawlings, said the committee would likely consider the two WYDOT funding bills side-by-side in November and consider the pros and cons of each. He said he expected to submit one of the concepts for consideration during the legislative session in spring 2022.
According to estimates provided last year, the WYDOT — which is funded through the state’s general fund — is currently facing a funding shortfall of $354 million a year, including $103 million less than what is needed to preserve the state’s roads and bridges. This has led to a postponement of several projects, including an $18.7 million expansion of Coffeen Avenue in Sheridan, and a focus on preservation over expansion, WYDOT District 4 Engineer Scott Taylor said.
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Fuel taxes, savings account could provide solutions for WYDOT funding deficit - The Sheridan Press
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