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Legislature approves ITD's FY '08 appropriation,
defers decision on long-term funding

Transportation funding, one of Governor Otter’s cornerstone issues entering the 2008 Legislature, will return when lawmakers assemble next year. They debated until the closing hours how to address funding for the state’s growing transportation needs.

They generally acknowledged the transportation system is falling farther behind each year because of rapid growth, flattening revenue and double-digit inflation in the highway construction industry. How to close the gap between revenue and needs of the system will be left to the next Legislature.

“I am confident they will do the right thing,” said Darrell Manning, chairman of the Idaho Transportation Board. Although disappointed that long-range transportation funding was not resolved, both Manning and ITD Director Pam Lowe agreed that a foundation has been laid for next year.

Several revenue-generating proposals were discussed this year, including the governor’s suggestion to raise vehicle registration fees and a House bill that would have tempered the registration increase with a small gas tax hike. In the end, however, legislators deferred action until after an independent transportation department audit.

Legislators passed, and Gov. Otter approved, $550,000 for that audit.

Nevertheless, the 2008 Legislature produced a number of positive outcomes.

The Joint Finance and Appropriation Committee strongly endorsed and forwarded ITD’s FY 2009 budget request to the full legislature where it was approved with no major changes.

The FY 09 appropriation is $493,966,900 (including funding from an additional appropriation bill that authorizes the expenditure of about $1.5 million). The total appropriation is down slightly from the FY08 budget of $495.7 million. ITD’s authorization has remained fairly stable in recent years, at approximately $500 million.

Of the FY09 appropriation, $263,664,000 comes from combined federal sources and $230,302,900 in dedicated, local and interagency sources.

The Legislature also approved an additional $134 million in GARVEE (Grant Anticipation Revenue Vehicle) authorization this year for expedited construction in targeted corridors.

Early in the Legislative session, lawmakers approved an increase of 1.5 cents per gallon on aviation gas and jet fuel. The cost of aviation fuel goes to seven cents per gallon and the jet fuel tax increases to six cents per gallon. The net revenue increase to the Division of Aeronautics is estimated to be $429,000 this year.

Inflationary costs and flat revenue prompted the Division of Aeronautics to limit some airport maintenance activities and curtail several educational programs. The taxes approved by the Legislature and signed by the governor in February will enable ITD to reinstate some of those programs and improve service to the aviation community.

See related story about other transportation legislation.

See related story about other transportation legislation.