Mississippi House approves funds for road and bridge work

Transportation funding is an ongoing struggle at the Mississippi statehouse. Multiple bills halfway through the statehouse could signal progress on efforts to address a projected $400 million annual shortfall.

The Magnolia State relies on about $1 billion each year in federal funds and from state sources, including the 18-cent fuel excise tax and truck fees.

The House unanimously approved one bill to use $108 million in tax revenue for roads and bridges. Sponsored by House Speaker Philip Gunn, R-Clinton, HB722 now moves to the Senate.

House Democrats supported the Republican-led effort to tap funds from the state’s general fund. The group posted on social media following the vote their view that HB722 is “a first step in providing comprehensive funding for roads and bridges.” However, House Democrats added “we will be vigilant in ensuring that the $108 million it takes from the general fund will not result in cuts to other valuable state services or result in the loss of state jobs.”

Specifically, the bill would divert 35 percent of the state’s use tax collection to cities, counties, and a grant program. Cities and counties would split 15 percent while 5 percent would be allotted to a state fund to provide grants to local governments.

All money would be used to pay for road and bridge maintenance, repairs, and construction.

According to the American Association of State Highway and Transportation Officials, the state has nearly 159,000 total lane miles. There also are more than 17,000 bridges.

The Department of Revenue collects use tax on goods shipped from out of state for use, storage or consumption in Mississippi. All brick-and-mortar stores collect the use tax on purchases. The agency notes that use tax also applies to items purchased inside the state if sales tax was not paid at the time of purchase. In addition, some online retailers voluntarily collect the tax for the state.

The state collects more than $300 million annually via the use tax.

House lawmakers also approved three other transportation funding bills in the first days of the 2018 regular session.

No more ‘pet projects’
Also sponsored by Rep. Gunn, the first bill would place a two-year moratorium on new state construction projects. HB359 would make exceptions for projects where land acquisition already has started or the road is needed for economic development purposes.

During House floor discussion, Gunn said the legislation is aimed to prevent legislators from “sticking more pet projects into the appropriations bill.”

Borrow money, tag future revenue
Another bill, HB357, would borrow $50 million. The money would be split for county and city bridge repairs and replacement.

A separate bill, HB354, would devote 50 percent of general fund growth above 2 percent from the previous year up to $100 million to road and bridge needs. The Mississippi Department of Transportation would claim 60 percent, with counties receiving 25 percent and cities getting 15 percent.

Critics of the three bills say they do little to solve the state’s infrastructure problems. They point out that the threshold included in HB354 has not been reached in recent years. Also, the state is not building many new highways.

The bills await further consideration in the Senate.

Considering a fuel tax increase
Efforts to cover transportation funding needs do not end there. There are multiple efforts to raise revenue with fuel tax collection.

One measure in the works from Sen. Dean Kirby, R-Pearl, is expected to permit voters to decide whether to increase the state’s fuel tax – unchanged since the 1980s. Vehicle registration fee increases would also be on the table.

Gov. Phil Bryant has voiced support for placing the issue on the ballot.

To view other legislative activities of interest for Mississippi, click here.