Downtown Georgetown
Talking Gas Tax
RECEIVED Mon., April 25, 2005
Editor,
Under "Lege Notes,” April 22 [News], Kimberly Reeves reports that a regional gas tax increase "would amount to $25 million a year, up against a $2 billion price tag on toll road construction."
First, toll roads are built with primarily gas tax monies, not toll bonds. The shortfall covered by toll bonds is well under $1 billion.
Second, experts at CAMPO have estimated that a 2.5-cent local gas tax increase would return $1.1 billion over 20 years (p.179, draft CAMPO Mobility 2030 Plan). Over 40 years, the life of CTRMA's bonds, the return would be more than $2.2 billion.
Third, a gas tax could produce revenue as soon as six months from now. It will be years before tolls produce positive cash returns.
Of course, this is all academic. Gov. Perry and state Rep. Krusee plan to loot our existing gas taxes for their grand Trans-Texas Corridor toll empire. And, as your reporter observes, Krusee and Sen. Barrientos will loot any local gas tax increases for their pet passenger rail schemes.
Under "Lege Notes,” April 22 [News], Kimberly Reeves reports that a regional gas tax increase "would amount to $25 million a year, up against a $2 billion price tag on toll road construction."
First, toll roads are built with primarily gas tax monies, not toll bonds. The shortfall covered by toll bonds is well under $1 billion.
Second, experts at CAMPO have estimated that a 2.5-cent local gas tax increase would return $1.1 billion over 20 years (p.179, draft CAMPO Mobility 2030 Plan). Over 40 years, the life of CTRMA's bonds, the return would be more than $2.2 billion.
Third, a gas tax could produce revenue as soon as six months from now. It will be years before tolls produce positive cash returns.
Of course, this is all academic. Gov. Perry and state Rep. Krusee plan to loot our existing gas taxes for their grand Trans-Texas Corridor toll empire. And, as your reporter observes, Krusee and Sen. Barrientos will loot any local gas tax increases for their pet passenger rail schemes.
Vincent J May
Elgin
Elgin
