Road funding increase pursued in Wyoming

In the lead-up to the start of the 2022 regular session in Wyoming, multiple bills filed for consideration would help the state address an estimated $354 million shortfall for road funding.

The pursuit of funds is aided by the recently passed federal Infrastructure Investment and Jobs Act. The Wyoming Department of Transportation will receive $113 million from the feds.

Despite the shot in the arm, the agency reports a $241 million funding gap will remain.

Touted as a part of the road funding solution

One method being pursued to help address funding concerns is the state’s 6% severance tax. The tax is imposed on the extraction of nonrenewable natural resources that include crude oil and natural gas.

Severance tax revenue is deposited into the state’s Permanent Mineral Trust Fund.

The Joint Transportation, Highways and Military Affairs Committee voted 8-3 to advance a bill to route a portion of the tax revenue to roads.

Sponsored by Rep. Jerry Obermueller, R-Casper, the legislation calls for diverting 1%, or about $87 million annually, of the state’s severance taxes from the trust fund to roads and schools.

Obermueller said the state’s future depends on taking steps like he is calling for.

“This bill is a ‘first-things-first’ bill, in my view … Without first-class roads and infrastructure, we have no future for anything else,” Obermueller testified. “This bill is an important part in the effort to maintain and build a modern rural state.”

The Wyoming Department of Transportation would receive 70% of the funds, or about $61 million yearly. The remaining 30%, or about $26 million per year, would be routed to community colleges.

Transportation dollars would be used for projects included among WYDOT’s spending priorities.

Related option

The interim transportation committee also recently voted to advance consideration of a 15-cent fuel tax increase.

Committee members voted 9-2 to advance a bill to raise the 24-cent-per-gallon tax on gas and diesel by 15 cents to 39 cents. The increase would occur in five-cent increments over three years.

The first nickel increase would occur in July 2022. Additional increases would take effect in July 2023 and July 2024, when the tax rate would reach 39 cents.

The tax increase also would apply to alternative fuel vehicles.

Each penny increase is estimated to raise $4.2 million per year. Once fully implemented, the increase is estimated to raise $63 million annually.

Funding would be applied for highway construction, repair and maintenance. Revenue could not be used for WYDOT operating or administrative expenses.

The bills can be considered during the regular session that begins Feb. 14. LL

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