Friday, Oct. 14, 2005 | 7:22 a.m.
CARSON CITY -- To keep up with higher demand for more roads, Nevada's gas tax -- unchanged for more than a decade -- may have to be tied to the rate of inflation in the future, Gov. Kenny Guinn said Wednesday.
The state's tax on a gallon of gasoline has remained at 18.44 cents since 1992, and revenues are not keeping pace with the rising cost of construction materials, Guinn said.
The issue came up during a transportation board meeting in which a record $1 billion road-construction program was approved for next year, with $510.7 million ticketed for Clark County.
Transportation planners are worried that within three years the state won't have sufficient money to build and maintain enough state roads to serve Nevada's booming population.
After the meeting, Guinn said he would ask a 15-member blue ribbon task force, charged with bringing recommendations on transportation issues to the 2007 Legislature, to study the issue.
The 2003 Legislature allowed Washoe County to increase its local gas tax by linking it to the rate of inflation. Greg Krause, executive director of Washoe County's Regional Transportation Commission, told the transportation board that the link allows for better planning.
Under the formula, Washoe County's gas tax can increase by a maximum of 4.5 percent each year. Last year, the tax went up by a half cent per gallon, Krause said.
Krause, noting it is difficult to approve a "big spike" in the gasoline tax, said an increase tied to inflation allows the rate to grow gradually.
Counties impose a tax of 6.35 cents per gallon and most major counties, including Clark, have the option to add up to 9 cents more a gallon. The federal tax is 18.4 cents per gallon. The state's current tax of 18.44 cents per gallon added $184.5 million to the state's highway fund in 2004 and $176.6 million in 2003, according to the state Transportation Department.
The concern about funding transportation projects has been exacerbated recently by Congress' consideration of dipping into federal highway dollars to help out the hurricane-ravaged Gulf Coast.
At Wednesday's meeting, the board also endorsed Transportation Director Jeff Fontaine's suggestion to dangle a carrot in front of local governments to take back maintenance and upkeep of some local streets.
State officials have identified more than 600 miles of streets that they believe are the responsibility of local governments. So far, counties have accepted only 30 miles because, Fontaine said, local governments do not want to pay for the streets' upkeep.
Fontaine's suggestion would be to offer local governments a one-time lump sum that could be used for such things as repaving, snow removal and upkeep. Afterward, the county or city would be responsible for the streets' maintenance.
Guinn called that plan a "good neighbor" policy. If the local government refused the deal, the state could consider abandoning the streets' upkeep.
Fontaine said Clark County has been good about taking over the maintenance of some streets, including the Strip portion of Las Vegas Boulevard. He said the state will probably have to assume jurisdiction over the Las Vegas Beltway, but the department would like the county to take over such streets as Sunset Road, Craig Road and Eastern Avenue.
The money to finance the $1 billion in road construction in the new budget will come from a variety of sources. Kent Cooper, assistant director of planning for the Transportation Department, told the board that $200 million -- and possibly more -- will come from the federal government, $193 million from the state, $517 million from bonds and $138 million from developers.
Among major projects approved in Clark County was $172 million for widening Interstate 15 from six to 10 lanes from the Spaghetti Bowl to Craig Road. Fontaine said that project was stepped up after an additional $50 million became available.
Cy Ryan can be reached at (775) 687-5032 or at [email protected].
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