Senate passes $455 million transportation bill

On April 24, the Senate unanimously passed a $455 million Transportation bill that includes financial resources necessary to fix decaying transportation infrastructure around the state. The bill includes a two percent tax on the wholesale price of gasoline and diesel, a provision that received broad bipartisan support. Based on current fuel costs, this taxis expected to raise $12.8 million in FY10.
The bill also sets up a bonding structure that will allow the state to bond in future years when the state is no longer receiving federal stimulus funds. The state is expected to receive 140 million of transportation dollars through the American Recovery and Reinvestment Act (ARRA) over the next two years.
The Transportation bill will repair and maintain broken roads and bridges throughout the state and through this process will generate hundreds of good paying jobs for Vermonters, said Senate President Peter Shumlin.
The problem with our current structure is that when gas prices rise, people drive less and our revenue declines, making it difficult to keep up with necessary repairs and improvements, said Senator Shumlin.
The advantage of the two percent tax on wholesale gasoline and diesel is that as gas prices rise, so will our revenues.
The bill that we passed allows us to maximize the federal stimulus dollars over the next two years and preserves our ability to bond for when that money is no longer available, said Senator Mazza, Chair of the Senate Transportation Committee.
The Transportation bill will now be considered by a Senate and House Committee of Conference.
Source: Senator Shumlin's office