In nearly two-thirds of states, state-imposed fuel taxes have not kept up with inflation for two decades, according to a Governing analysis of state gas tax data reported to the U.S. Census Bureau. That is forcing legislators around the country to consider raising gas taxes or exploring other ways to increase transportation spending, as Congressional action on adjusting the federal portion of the gas tax to meet infrastructure needs remains stalled.
As Connecticut – with among the nation’s highest gas taxes – contemplates embarking on a decades-long comprehensive transportation infrastructure upgrade, how to fund the likely record-setting fiscal requirements has been assigned to a task force to consider and propose recommendations. Earlier this month, Michigan voters resoundingly defeated a measure — 80 percent voted “no” — to hike gas taxes and make many other changes to boost state transportation spending, Governing reported. Last fall, Massachusetts voters recinded (with 53% of the vote) a law that would have automatically tied gas tax rates to inflation. The law had been passed by the state legislature in 2013.
Connecticut’s gas tax, increased most recently by about 4 cents per gallon in July 2013, based on legislation approved previously – a step not taken by many other states in recent years. The Institute on Taxation and Economic Policy reported earlier this year that 22 states hadn’t raised their gas taxes in more than a decade, according to Governing. Connecticut is not among them. CLICK TITLE TO CONTINUE
Measure to protect transportation fund one step closer
Connecticut voters may get the chance to weigh in on a “lock box” measure that would prevent state government from siphoning money from the Special Transportation Fund to cover other General Fund expenses.
A bill that would send to referendum a constitutional amendment protecting transportation funds cleared the Government Administration and Elections Committee on Tuesday. It’s now on the House calendar.
Three Republicans and one Democrat voted against the bill.
Gov. Dannel P. Malloy used much of this year’s State of the State address to advocate for a “lock box” to prevent lawmakers from diverting funds collected for transportation projects. The governor framed the policy as a prerequisite to collecting additional revenue to fund a 30-year plan to upgrade Connecticut’s transportation infrastructure.
The bill was one of two Malloy filed to create a lock box. One is a change in statute that he could sign into law if it’s approved by the legislature. It was sent to the House by the Transportation Committee last month. The constitutional amendment would need to be approved by voters after the legislature either passed it with a super majority or passed it two years in a row. In either case, it takes more than one year to amend the constitution. CLICK TITLE TO CONTINUE
US home construction rises at fastest pace since 2007
U.S. homebuilders ramped up construction in April to the fastest pace in nearly seven-and-a-half years, hinting at newfound momentum for an economy that has struggled in recent months.
The Commerce Department said Tuesday that housing starts last month increased 20.2 percent to a seasonally adjusted annual rate of 1.14 million homes. That pace ranks as the fastest clip since November 2007. Builders appear to have finally shaken off a turbulent winter that shut down construction sites and hampered growth across the economy. The sharp increase indicates that growth might accelerate after being close to flat in the first quarter. It also suggests that builders are responding to tight inventories of existing homes and increased buyer demand due to strong hiring over the past year and low mortgage rates.
Housing starts surged in the Northeast, Midwest and West, while slipping slightly in the South. Construction of single-family houses climbed 16.7 percent in April, an indication that sales of new homes should also rise in the coming months. Apartment building shot up 31.9 percent. CLICK TITLE TO CONTINUE
Southington PZC approves senior apartments for downtown
SOUTHINGTON — The Planning and Zoning Commission unanimously granted a special permit Tuesday for an 86-unit senior housing complex in downtown Southington.
Local developer Mark Lovley plans to build a four-story, 86-unit senior apartment building off Eden Avenue on Forgione Drive. A special permit is required to build apartments in the central business zone.
Lovley said he hopes to begin construction early next year. He still needs a site plan approval from the town as well as other approvals.
At its last meeting, the commission tabled the application for a special permit to give Lovley time to develop new renderings of the proposed building. The commission also held a public hearing on the development. No one spoke against the plan and one resident spoke in favor.
Lovley has a contract with the Forgione family to buy three acres of land in the center of the area bounded by Eden Avenue, Main Street, Liberty Street and Columbus Avenue. Three houses on the land on Forgione Drive will be demolished to make way for the apartments.
The 100,000-square-foot, four-story building will help address the need for housing downtown, Lovley said. Senior housing, in particular, is in high demand. The town’s housing authority has a waiting list of 180 seniors looking for housing. CLICK TITLE TO CONTINUE
GRISWOLD — The Inlands, Wetlands and Watercourses Conservation
Commission and Aquifer Protection Agency is set to make a decision Thursday
concerning a company that residents say has been in violation of its operating
agreement with the town for years. In December, asphalt company American Industries, submitted an
application for permits to install changes to the property that would deal with
noise and pollution issues that have bothered residents on Johnson Cove and
Fairview Avenue for decades. Fabiola Proulx and her husband, Earl, have lived in the same house
on Fairview Avenue for 43 years. Throughout their four decades there, they say American Industries
has created noise and air pollution that have changed their quiet
neighborhood. “We can’t even open our windows or enjoy our deck because of the
smell,” Fabiola Proulx said. It’s “like if you spill a whole tank of
gasoline.” And the issues with the company have gotten steadily worse, the
Proulxs said,
“Definitely in the last five to eight years they’ve really picked
up,” Fabiola Proulx said. A year and a half ago, residents started complaining to town and
state officials. CLICK TITLE TO CONTINUE
The expansion into East Hampton was driven by several local business expressing an interest in natural gas, as well as the town government saying it wanted the fuel. The groundbreaking will be at pharmaceutical manufacturer American Distilling.
Connecticut's Comprehensive Energy Strategy calls on state regulators and utilities to make natural gas the home heating fuel of choice among businesses and residents, replacing fuel oil.
Between the state's three major natural gas utilities – CNG, Eversource Energy, and Southern Connecticut Gas – the plan is to add 280,000 natural gas customers by 2023.
Revised bill could push casino decision to 2016
HARTFORD — The Senate is expected to vote Wednesday on a revised bill that would delay the pace of building a new tribal casino and also require a second approval vote that could be pushed into next year.
Senate leaders expect the bipartisan bill to pass the 36-member chamber, where legislators on both sides of the aisle have been split on the idea of building another casino to battle out-of-state competition.
The revised bill creates a two-step process in which towns would submit proposals to the Mashantucket Pequot and Mohegan tribes, who have discussed building a jointly operated facility in northern Connecticut to compete with an $800 million MGM Resorts International casino in Springfield that is under construction. CLICK TITLE TO CONTINUE
Senate expected to vote today on casinos
The state Senate is expected to vote Wednesday on a two-step process that will slow down the pace of building another Indian casino to combat out-of-state competition.
Top Senate leaders expect the bipartisan bill to pass in the 36-member chamber, where various lawmakers on both sides of the aisle are split on the issue.
The bill creates a process in which towns would submit proposals to the Mashantucket Pequot and Mohegan tribes, which will be building a joint facility in northern Connecticut to battle competition from an under-construction MGM Resorts International casino in Springfield. After the tribes decide on the winner of the request for proposals, the state legislature would vote again to approve the winner of the competition.
If there is no special session to approve the winner this year, the second vote could be pushed into the next regular session that begins in February 2016, officials said. CLICK TITLE TO CONTINUE
House passes fix for highway aid
WASHINGTON — States would continue to receive highway and transit aid for another two months under a bill the House passed Tuesday, the 12th such temporary patch in six years and a reflection of lawmakers' lack of consensus on how to solve the nation's infrastructure financing woes.
The bill was approved by a vote of 387 to 35. The current authorization to spend money from the federal Highway Trust Fund, which finances most aid to states, expires May 31. A Senate vote is expected later this week.
The fund relies on revenue from the 18.4-cents-a-gallon federal gasoline tax, but the tax hasn't been increased since 1993 and the money it brings in isn't enough to cover transportation spending. But most lawmakers are reluctant to raise it, seeing that as unpopular with voters.
Unable to find a politically acceptable solution, Congress has kept the trust fund teetering on the edge of insolvency since 2008. The extension passed by the House would expire July 31, when many lawmakers say they expect to go through the same exercise again.
Several top House and Senate Republicans have indicated they hope to find enough money to put an end to the temporary patches as part of a larger effort to rewrite tax laws. But broad tax legislation is notoriously difficult to pass even without the complication of finding a transportation spending solution.
"If we don't change something, we'll be right back here in July talking to each other" about another extension, said Rep. Bill Pascrell, D-N.J., who argued against the bill.
Rep. Bill Shuster, R-Pa., chairman of the House Transportation and Infrastructure Committee and the bill's chief sponsor, acknowledged the two-month extension is less than ideal, especially since it expires in the middle of the summer construction season. Uncertainty over whether they can count on federal aid has already caused some states to cancel or delay millions of dollars in construction projects.
Rep. Peter DeFazio, D-Ore., urged colleagues to raise the federal gas tax, saying 14 states have raised theirs since 2013 "and nobody lost their election because they voted for a gas tax increase."
The White House said in a statement that it wasn't opposed to the extension, but urged lawmakers to "use this two-month extension to make meaningful and demonstrable progress toward a significant bill."
During debate on the extension, Democratic lawmakers introduced a bill proposed by the White House that would spend $478 billion on transportation over six years, a 45 percent hike over current spending. The spending increase would be paid for by closing loopholes that allow U.S. corporations to avoid paying taxes on foreign earnings by parking the profits overseas.
The House rejected an effort by Democrats to add $750 million to the bill to help passenger railroads install safety technology known as positive train control, which the National Transportation Safety Board has said could have prevented last week's deadly Amtrak derailment in Philadelphia, had it been in place.
"This really is not the place to address this," said Shuster, speaking against adding the additional money. "We need to pass this (extension) and get it to the Senate so that we make sure these vital programs keep people working, keep (construction) projects moving forward so that they don't shut down."