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2005-07 Biennial Budget Bill -
Summary
Amy Boyer
The Hamilton Consulting Group
Feb.
25, 2005
©
2005 The Hamilton Consulting Group
Transportation
[Print Version]
On
Tuesday, Feb. 8, Governor Jim Doyle unveiled his $52.6 billion 2005-07
biennial budget. Contained in those recommendations is a plan to spend more
than $4.6 billion on transportation in Wisconsin through the Department of
Transportation.
The
transportation fund is a segregated account that has a direct revenue stream
largely comprised of user fees (gas taxes, registration fees, etc.) as well
as proceeds from bonding and federal funds. Traditionally, transportation
funds are dedicated for transportation program purposes; however, in the
2003-05 biennial budget, transportation funds were used to help fill the
general fund budget deficit with a $675 million transfer. That transfer to
the general fund set the precedent for future transfers out of the
segregated transportation fund, which occur with the current budget
recommendations.
Governor Doyle’s transportation budget calls for increases in certain user
fees, contains substantial bonding and slightly increases spending, while
keeping most programs at current funding levels or providing modest or
inflationary increases. There are, however, several transfers to the general
fund that have been criticized by transportation stakeholders throughout the
state.
Specifically, the budget contains $172 million in ongoing and new transfers
for pupil transportation; a $250 million loan to the general fund in 2006,
which is replaced with general obligation bonds with future debt service
paid with GPR., and an $18 million transfer to the general fund in 2007 as
well as $28 million in new transfers for programs in other state agencies.
Specifics of the transportation budget are as follows:
*
The $250 million transfer is replaced with General Obligation bonds,
with future debt service paid with General Purpose Revenues.
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Bonding: $781 million in total bonding for transportation, or
approximately 13% of the budget. Most of the bonding will be utilized for
the Major Highway Program, the Marquette Interchange, the Harbor
Assistance Program and the Freight Rail Preservation Program.
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Fee
Increases:
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Vehicle Registration Fee - $10 increase to $65
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Truck Registration Fees – from $48.50, $61.50 and $77.50 to $65, $71 and
$87 respectively
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Duplicate title fees - $8 to $20
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Title transfer fees - $35 to $45 (Supplemental title transfer fee of
$7.50 goes to environmental fund instead of transportation fund for
nonpoint source water pollution abatement)
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Repeals sunset of $9 environmental impact fee to environmental fund
(currently part of the vehicle registration fee)
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Car rental tax – increases from 3% to 5%. Proceeds go to the Dept. of
Tourism
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Highway Programs:
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Major Highway Program – provides a 2% inflationary increase over the
biennium ($64 million).
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Rehab – provides a 2% inflationary increase ($32.9 million) and an
additional $65 million over the biennium to maintain highway pavement
quality.
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Maintenance – provides a 2% inflationary increase over the biennium
($8.7 million) and an additional $9 million to cover additional costs
related to growth in lane miles.
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Marquette/SE freeway system – for the Marquette Interchange, $345.4
million is provided in FY06, of which $213.1 million is new
transportation-supported GO bonding authority to complete the project on
schedule. The Governor also recommends the following for the SE
Wisconsin freeway system: address non-Marquette Interchange highway
rehab needs ($19.3 million in FY06 and $49.3 million in FY07); and begin
preliminary engineering for the next phase of system reconstruction
($9.5 million in FY06 and $19.6 million in FY07).
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Highway Operations:
The Governor’s budget recommends providing additional spending and hiring
authority for additional highway engineers ($722,000 and 10 positions) and
highway planning and research ($1.9 million annually).
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TEA
Program:
Provides an additional $2.4 million in funding for the Transportation
Economic Assistance grant program. The TEA Program provides 50% state
grants to governing bodies, private businesses, and consortiums for road,
rail, harbor and airport projects that have a direct impact on job
creation or retention.
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Harbor Assistance:
Provides $12.1 million over the biennium of which $8.1 million is for
specific projects in Northeastern Wisconsin. Governor also recommends
funding for Wisconsin’s share of the Soo Locks ($117,000 annually for 50
years).
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Rail Assistance:
Increases bonding authority for the Freight Rail Preservation Program to
$6.5 million over the biennium; expands the potential uses for existing
bonding authority for passenger rail capital improvements.
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Airport Improvement Program:
Provides a 2% increase in each year for the program. The Airport
Improvement Program combines federal, state and local resources to help
fund improvements to Wisconsin’s public-use airports primarily owned by
counties, cities, towns and villages. Improvements may include runway
construction and reconstruction, land acquisition, navigational aids and
lighting.
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Local Aids:
Provides an additional 2% in funding for General Transportation Aids and
the Local Road Improvement Program; fully funds lift bridge aids
($487,000). The proposal also includes a 2% increase for transit aids and
a 36% increase for elderly and disabled transportation aids ($6 million
over biennium).
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State Patrol:
Provides $1.5 million and 20 additional state trooper positions in FY07
and $1.3 million over the biennium for fleet costs.
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Homeland Security:
Provides additional funding to enhance the commercial driver employer
notification system to increase homeland security.
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License Plates:
Deletes the requirement to reissue license plates to Wisconsin drivers
every seven years.
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Title Applications:
Requires motor vehicle dealers to electronically submit all title
applications.
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