MADISON, Wis. The Wisconsin Senate has approved legislation (SB 331) to end in 2007 the state's annual automatic increase in the gasoline tax, said the Associated Press. The bill would also move up by one month a planned one-cent cut in the portion of the tax that goes toward environmental cleanup projects.
Some lawmakers have pushed unsuccessfully for years to end the automatic yearly increase for inflation that began in 1985. But support for the measure grew following high gasoline prices this summer and swelled after the issue became a hot topic [image-nocss] among voters, talk radio and bloggers.
The top two Senate Republicans initially opposed the bill, but ended up voting for it Tuesday, while the top member of the Assembly promised a vote next week after initial expressing some reservations about the bill.
Supporters said the current system represents taxation without representation. Do we stand on our desks and vote aye in favor of a gas tax increase or no against the tax increase, or do we continue to cower under our desks and allow a formula to work for us? said State Senator Mike Ellis (R).
Opponents countered the bill would shortchange the $3.2 billion transportation fund by $5.1 million in the two-year budget that began July 1. They said the likely cuts would come at the expense of rural districts, delaying needed road projects. Identify what you want to cut first before you start cutting like this, said State Sen. Jon Erpenbach (D).
The Senate voted 20 to 13 to approve the bill, which next goes to the Assembly. If that chamber approves it, the bill would next go to Governor Jim Doyle for his review.
As reported in CSP Daily News, Doyle spokesperson Dan Leistikow said the governor would consider any measure lawmakers sent to his desk, but wanted assurances the legislation would maintain needed funding for safe roads.
Wisconsin's gasoline taxnow 29.9 cents a gallon plus three cents a gallon added on to clean up old gas stations and other environmental projectsis already one of the highest in the country.
The bill would eliminate indexing after the increase slated for April 1, when the tax is scheduled to increase 0.8 cents a gallon.
Lawmakers and the governor had already approved cutting a penny from the portion of the tax that goes toward environmental cleanup projects on May 1. The bill would move that up to April 1. The net impact would be a 0.2-cent decrease in the taxes motorists pay beginning April 1, while the 2007 increaseand those planned in future yearswould be wiped out. Moving up the penny reduction would cut about $3.2 million from the Petroleum Environmental Cleanup Fund Award.
Assembly Speaker John Gard (R) said that chamber will vote on the bill next week. Gard has raised concerns that the $5.1 million cut in the transportation fund could delay road projects. He said lawmakers will work on a long-term solution to those concerns and expected the bill to pass.
The time has come to end indexing, Gard said.
The issue cut across party lines and the debate featured the unusual situation of pitting Senate Majority Leader Dale Schultz (R) against much of the Republican caucus. Schultz had publicly vowed to vote against the bill leading up to Tuesday's vote. But he changed course during debate and urged his colleagues to amend the legislation to eliminate the planned increase in the gasoline tax for 2006 as well.
He said if lawmakers were sincere about eliminating indexing, they should do it now rather than waiting another year. Doing so would have increased the price tag for the proposal to more than $38 million out of the transportation fund. That drew protests from fellow Republicans that the proposal was fiscally irresponsible. Lawmakers rejected Schultz's amendment and instead amended the bill to move up the PECFA cut.
I think my colleagues were sending me a solid signal, Schultz said afterward.
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