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Groups speak out against road-tax hike
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By Scott Bauer

Associated Press

MADISON - A coalition of 10 powerful Wisconsin business groups spoke out Monday about a proposal from the Department of Transportation that would increase taxes and fees by more than $750 million to pay for roads projects.

The statewide chamber of commerce joined with groups representing grocery stores, restaurants, convenience stores, gas stations, truckers, car dealers and small businesses in issuing a statement questioning the gas tax hike and other fee increases, saying they could put businesses at a competitive disadvantage.

It is the loudest public opposition to the plan, meant to help close a multimillion shortfall, since it was made public 10 days ago. Republican legislative leaders have largely been silent, although state Sen. Alberta Darling said in an interview with WISN-TV over the weekend that she did not think Republicans could get behind the proposal.

The Transportation Investment Coalition, a group that includes road builders, labor unions, local governments and others that support spending more on transportation, is in favor of the plan.

The department's budget proposal would raise the gas tax 5 cents a gallon for regular gas and 10 cents more for diesel, impose a fee for new purchases amounting to $800 on a $32,000 vehicle, and create a $50 annual charge for owners of electric and hybrid cars. Without any changes, the transportation budget faced a roughly $680 million shortfall over the next two years. In addition to the $751 million in tax and fee increases, the budget also relies on about half a billion dollars in general tax revenue to balance and keep major road projects on schedule.

Gov. Scott Walker told The Associated Press last week that significant changes would be made to the department's request, but didn't specify. He will release his state budget plan in January or February.

Walker spokeswoman Laurel Patrick did not immediately respond to an email seeking comment Monday on the statement from the business groups.

"Our respective groups acknowledge the need for revenue increases in the Transportation Fund to meet critical infrastructure improvements," the groups' statement said. "However, we question whether the amount of the revenue increases proposed by the Department of Transportation are appropriate."

The group called the department's budget a "thoughtful set of options," but "certainly not the only option," and said they would work with Walker and the Legislature to find solutions that are "fair and equitable."

Those signing on to the letter were: Wisconsin Manufacturers & Commerce; Cooperative Network; National Federation of Independent Business; the Wisconsin Auto & Truck Dealers Association; the Wisconsin Grocers Association; the Wisconsin Housing Alliance; the Wisconsin-Minnesota Petroleum Council; the Wisconsin Motor Carriers Association; the Wisconsin Petroleum Marketers and Convenience Stores Association; and the Wisconsin Restaurant Association.