Ballot Measure 20-132 provides the city of Eugene with a fighting chance in dealing with its steadily rising construction backlog. The current total stands at around $170 million – a 250 percent increase over where it stood just six years ago. Without extra funding, that cost may balloon to $282 million by 2016. It’s clear then that standing pat is not an option.
The local tax hike was approved by the Eugene City Council. If voted into law in the November election, the city’s gas tax will be raised by 3 cents per gallon – from the current tax rate of 5 cents, to the proposed rate of 8 cents. This is in addition to the state tax, which has remained static at a rate of 24 cents per gallon since 1993. An 8-cent-per-gallon gas tax would be the largest fuel tax in the state – though the 24-cent state tax is on par with the national average.
The proposal quickly spurred the Oregon Petroleum Association into action. Joining forces with local fuel owners, the OPA gathered the necessary number of signatures to force a referendum. Were it not for the referendum, Measure 20-132 may already be law. But by forcing it onto the ballot, the decision will ultimately come down to the numbers. Eugene is Oregon’s third largest city – and the Oregon Department of Transportation’s biggest headache. No one likes taxes, but not addressing the problem will merely exacerbate it.
Both sides of the Measure 20-132 debate acknowledge the severity of this problem, and know that something needs to be done. The OPA’s main concern is that Eugene drivers will head elsewhere when it comes time to fill their tanks. If Eugene’s tax is 8 cents, they argue, and Springfield’s is only 3 cents, what’s to keep drivers from taking advantage of Springfield’s lower gas tax?
As an alternative to the problem, the OPA suggests raising Oregon’s state gas tax by 14 cents. This would resolve the possibility of drivers finding gas elsewhere. But would that be fair to surrounding cities, where deteriorating roads are less of a problem than here in Eugene? Furthermore, raising the state fuel tax to 38 cents will put an even greater strain on drivers when they head to the fill-up station.
Based on current gas prices, and statistics estimating that drivers in western states use 1,090 gallons of gas each year, the 3-cents-per-gallon tax hike would result in an increase of just $33 a year at the pump. If you fill up twice each month, you’re bound to split the difference just driving out to Springfield. Furthermore, imposing a statewide tax hike would put an additional burden on communities like Springfield, where median income is lower than in urban communities like Eugene.
The OPA’s suggestion of a statewide tax increase is merely an attempt to shift responsibility away from where it belongs. The city of Eugene has failed in recent years to address the state of its vastly deteriorated roads. Not doing so has cost drivers an estimated additional $320 a year in vehicle maintenance. Measure 20-132 will actually save drivers money by alleviating the added cost they incur when driving over our sub-standard roads.
Even with the implementation of the measure, more will be needed to curb to the backlog. Since many consumers are making the switch to more fuel-efficient vehicles, the impact of the tax won’t be felt as much as desired. So responsibility for repairing our broken streets will return to the Eugene City Council.
Voting yes on Measure 20-132 in November will give the city $2 million in additional funds each year. While by no means the cure-all end-all to this city’s construction woes, it is a step in the right direction – one that’s both feasible and necessary.
Gas tax a necessary evil to save city streets
Daily Emerald
October 7, 2007
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