Nebraska is one step closer to $75 million in new road and bridge funding. LB610 advanced from the second round of debate on Monday. The bill would increase motor vehicle fuel taxes by 1.5 cents each year for four years. When fully implemented, counties and cities would share $50 million and the state would receive $25 million.
The state currently collects 7.5 cents per gallon in motor fuel taxes. Counties and cities divide 2.8 cents. The bill would increase the state's rate by a half-cent each year through 2019, to total 9.5 cents. The county and city share would be increased by one cent each year to a final rate of 6.8 cents in 2019. In FY15-16, counties and cities would share an estimated $4.2 million. In FY18-19 collections would total an estimated $50.8 million.
The county and city share would be placed in the Highway Allocation Fund along with a portion of motor vehicle sales tax receipts. The Fund is evenly divided between counties and cities. The overall county share is distributed to individual counties based upon a formula that includes population, lineal feet of bridges, motor vehicle registrations, miles of county roads, and the value of farm products.
During Select File debate, an amendment (AM1158) was offered to limit the tax increase to counties and cities, with the proceeds designated for bridges and culverts only. Senator Mike Groene, the introducer, argued that counties, not the state, need more money for roads and discussed the options for using the proposed new dollars for matching funds. The amendment failed.
An amendment was offered by Senator John Murante (AM1120) to provide an income tax credit for motor vehicle fuels for persons with an income of less than $25,000 to offset the regressive nature of fuel taxes. It was determined not to be germane.
Senator Beau McCoy offered and withdrew an amendment (AM1118) to transfer $11 million from the state's cash reserves to the Highway Cash Fund. Counties do not receive funding from the Highway Cash Fund.
Although there were concerns that a cloture vote might be needed to end debate, the bill advanced on a 27-14 vote. If LB610 passes on Final Reading, Governor Pete Ricketts has said he will veto it. Thirty votes are needed to override a governor's veto.
If you haven't already done so, please contact your senator and express support of LB610 and an override motion, if needed. If your senator voted in favor of LB610, please thank him or her for supporting counties and encourage continued support of LB610. If your senator voted against LB610 or did not vote, explain your county's road and bridge needs and encourage him or her to support LB610. A list of senators and their contact information can be found here on the Legislature's website.
Voting in favor of LB610 on Select File:
Baker, Campbell, Coash, Crawford, Ebke, Friesen, Gloor, K. Haar, Hadley, B. Harr, Howard, Hughes, Johnson, Kolowski, Kolterman, Kuehn, Lindstrom, McCollister, Morfeld, Nordquist, Pansing Brooks, Scheer, Schumacher, Seiler, Smith, Stinner, Williams
Voting against LB610 on Select File:
Bloomfield, Bolz, Brasch, Chambers, Craighead, Davis, Groene, Kintner, Krist, Larson, McCoy, Murante, Sullivan, Watermeier
Not voting on Select File:
Cook, Garrett, Hansen, Hilkemann, Mello, Riepe, Schilz, Schnoor
You may also want to consider writing a letter to the editor of your local paper expressing your support for LB610.