News from Annapolis                                                         February 19, 2010

Delegate Krebs' Legislation Would Safeguard our Transportation Dollars

Dear Friends,

     All of us pay state gas taxes, vehicle registration and sales taxes on new and used cars. We should be able to expect something in return: Safer, less congested highways, efficient snow removal and an improved Route 32 and 26. After all, these revenues go into the Transportation Trust Fund and are dedicated to the support of transportation in Maryland.snowy state house
     Unfortunately, this Fund has been raided repeatedly. Next year, it is targeted for the biggest single diversion yet--$340 million--if the Governor's plan to backfill his budget with transportation dollars is approved. My Transportation Trust Fund Protection Act (House Bill 383) would erect a firewall between the Trust Fund and the General Fund to stop diversions of money we need for the timely improvement of roads.
     Why move money away from roadway construction jobs and use it, instead, to backfill entitlement programs in the Governor's budget?
     That question was raised repeatedly during Tuesday's hearing on my legislation. A long line of supporters, including the Maryland Chamber of Commerce, the Greater Baltimore Committee and AAA Mid-Atlantic, urged the House Ways & Means Committee to pass HB 383 so we can restore the public's trust in the Transportation Trust Fund.
     AAA followed up with a press release Tuesday saying the recession has depressed revenue and forced postponement of more than $2 billion in highway projects.
     I also have introduced House Bill 367--Dedicated Highway Funds--which would ensure that revenues from the gas tax, vehicle title tax and car registration are dedicated only to highway purposes. A public hearing on HB 367 is scheduled for March 2. An estimated third of Trust Fund expenditures go toward highway and road projects, even though half its revenues are brought in by the vehicle titling tax, gas tax and registrations. At the same time, Maryland spends nearly a third of its Transportation Trust Fund money on transit.
     For more information on this week's legislative issues, you may want to read the
Legislative Wrap-Up, prepared by the state Department of Legislative Services every Friday.
 

Bill Would Restrict Raiding Transportation Fund to Balance Budget 

As reported on Southern Maryland Online:

"It's called a trust fund. It's supposed to be set-aside money for transportation projects," Krebs said in an interview. "In this economic environment ... it's even more reason to keep money in the Transportation Trust Fund. These are the people who we are employing to build our roads."

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