Las Vegas Sun

May 1, 2024

Highway construction needs another $4.5 billion

CARSON CITY - Even as one gubernatorial candidate wants to repeal the state's gasoline tax - the state's largest source of road-construction funds - a task force is searching for more than $4.5 billion in new revenue to finance large road projects, mostly in Clark County.

The state receives more than $208 million a year from its 17.8-cent-per-gallon tax; most of it goes for highway construction.

But the state Transportation Department estimates it will need an additional $4.5 billion between 2008 and 2015 to pay for necessary "mega-road" projects.

And with the escalating price of gasoline, there is little political motivation to increase the gas tax.

Sen. Bob Beers, R-Las Vegas, a GOP candidate for governor, on Thursday asked Gov. Kenny Guinn to call a special session of the Legislature to repeal the state's gas tax.

He said the state could shift its growing surplus to cover the loss of revenue without affecting road building.

Guinn dismissed the idea. Steve George, his spokesman, said the governor wants to see if legislative leaders support a special session, and he also wants specifics on the impact of eliminating the gas tax.

Meanwhile, a task force created by Guinn to identify funding sources for future highway construction projects met Thursday in Elko and began discussing options.

The state's gasoline tax was last raised in 1992. Each penny generates about $11.8 million.

Daryl E. Capurro, a task force member and trucking industry lobbyist, doubted there would be any political support to raise taxes by 9 cents a gallon.

Raising taxes, he and others said, would discourage travel and ultimately raise less money than hoped.

So what's the answer?

Task force member Carole Vilardo, who heads the Nevada Taxpayers Association, said there was no "silver bullet" to cure the funding problem.

She challenged the task force to come up with a "politically palatable" solution. The panel hopes to develop its recommendations when it meets in June and July.

Twenty-five potential tax sources were presented to the committee Thursday. They included boosting the tax on gasoline and special fuels, raising vehicle and driver's license registration fees and charging more for overweight-load permits.

Other proposals including increasing the rental car tax, levying tolls on urban interstates and freeways, and boosting the tax on tires and emission control inspections.

State Transportation Director Jeff Fontaine said the need to fund mega-highway construction projects has never been greater. He said the "higher level of congestion and the worst level of service" on highways was in Southern Nevada.

Three of the 10 major projects are on Interstate 15 and will cost more than $2 billion, he said. They include widening the highway and installing ramps on I-15 from U.S. 95 south to Tropicana Avenue, which alone will cost more than $1.1 billion.

Improvements on I-15 from U.S. 95 north to Las Vegas Motor Speedway are estimated to cost $260 million.

An estimated $544 million is needed for improvements on U.S. 95 between Las Vegas and Henderson, and $330 million is needed to widen the I-15 to eight lanes between Tropicana and Sloan.

Other major projects planned for Clark County include a bypass around Boulder City ($450 million), construction of the U.S. 95 northwest corridor ($135 million) and beltway interchanges ($140 million).

About $1 billion of the $4.7 billion would be spent in the Reno area.

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