Governor, Norris in tiff over gas tax funds

By Bill Hiles
State Gazette
April 30, 2006

Gov. Phil Bredesen and Senate Transportation Committee Chairman Mark Norris are engaged in a dispute over state transportation funds.

But Norris, R-Collierville, resisted calling it a fight.

“It’s just normal tension between the legislative and executive branches of government,” Norris said in an interview. “But there are some very significant policy issues at stake.”

In an address last week to the Tennessee Business Roundtable, Bredesen said the transportation committee had “tacked on another $44 million” to his transportation budget proposal without “any plan for where the money is to come from.”

Norris took exception to the governor’s remark and sent a letter to the president of the business group in an attempt, he said, to set the record straight.

In a letter to William A. Kelly, dated April 24, Norris disputed Bredesen’s statement.

“Contrary to Governor Bredesen’s remark that we propose to increase state spending, it is the committee’s desire to stop the unwise yet continuing diversion of dedicated transportation funds to the new entitlement programs he proposes for next year,” Norris wrote. “The committee voted 7-1 to restore funding previously dedicated to the road fund. These funds are generated from the existing state gas tax, not new taxes, and they are intended to be used for transportation, not new entitlements unrelated to transportation.”

On April 5 the transportation committee voted to recommend a $43.8 million addition to the state transportation budget that Norris said is a restoration of funds that Bredesen had proposed to divert for non-transportation purposes.

“For several years our tax collections have been above expectations and the diversion should stop,” he said. “The governor began taking funds when he came into office and the state was in a pinch. His desire to continue funding programs unrelated to transportation is, in effect, an unwarranted tax.”

Norris said Bredesen has diverted $217 million during his administration from transportation user fees to the state’s general fund. He said now is a particularly bad time to divert transportation funds.

“In December 2005, without notice, Congress rescinded more than $76 million in federal transportation funds which had been appropriated for scheduled projects in Tennessee,” he said. “This has put at least eight previously scheduled highway projects in jeopardy and generally threatens continued availability of additional funds for industrial access roads needed for economic development across the state.”

Norris said federal funding for mass-transit projects also has been cut.

“The federal government has also cut funding for public transportation this year resulting in a net loss of an additional $5 million in Tennessee,” he said. “This comes at a time when the state’s public transportation needs have actually increased due to the additional loss of federal JOBS ACCESS REVERSE COMMUTE (JARC) funds which are used for people to get to their jobs.

“In the last appropriation, Tennessee received $6 million dollars of these funds.”

Norris said Congress rescinded the transportation money to compensate for costs of the war in Iraq and to use the money for earmarks, or federal lawmakers’ favorite projects in their districts, commonly known as pork.

“Under the new bill, Tennessee’s allocation of funds is only $2.5 million,” he said. “Consequently, public transportation in Tennessee has lost $3.5 million in federal funds.”

He said the loss will affect the entire state.

“Since these funds are matched at a 50 percent federal, 25 percent state and 25 percent local rate, the net effect is a $5.25 million dollar loss to transit providers across all 95 counties in the state,” he said. “If not replaced, many Tennesseans will not be able to get to work and may lose their jobs.”

Norris said the governor plans to use the diverted gas tax funds to expand his pre-kindergarten educational program for children.

“I voted for the pre-kindergarten program last year because we were told it would be voluntary and we would assess it after a year and it was funded with lottery money,” he said. “Now he wants to expand it with general fund money from the gas tax and I wonder if Tennesseans know they are pumping gas for Pre-K every time they fill up?”

He said he supports education but some educators he has talked to wonder if pre-K programs lead to childhood burnout.

“That’s one thing the assessment was supposed to tell us,” he said. Norris described levying a tax for one purpose but using it for another as irresponsible. “If the governor needs new revenue for new programs, then he should make that case to the taxpaying public and not divert funds from their intended purpose,” Norris said. “If the administration has determined that the tax is no longer necessary for transportation, then the governor should reduce the state gasoline tax.”

Tennessee’s gasoline tax was established in 1923 under Gov. Austin Peay’s administration to support transportation.

Norris said Tennesseans are paying record-high prices for gasoline while 21.4 cents per gallon is supposed to be dedicated to Tennessee transportation needs.

Bredesen also announced during his speech last week he would veto any legislative effort to restore the road fund.

Citing a recent study reporting that Tennessee is falling behind in funding essential needs in schools, transportation and utilities, Norris said that approximately $217 million dedicated to transportation has been diverted for other purposes.

In addition, the federal government recently rescinded more than $76 million without notice leaving a shortfall for scheduled projects, which are now in jeopardy.

“The Bredesen administration is robbing Peter to pay Paul,” Norris said. “As the price of gas nears $3 a gallon, I think the public would be shocked to know they are paying at the pump for new entitlement programs wholly unrelated to transportation.”

Norris sent a similar letter to the one he sent to the Business Roundtable to Bredesen and asked in it for an opportunity to discuss transportation funding with the governor.

A spokeswoman for the governor said Bredesen hasn’t had a chance to respond to Norris.

“The letter was hand-delivered Monday and the governor has been on the road for three solid days,” said Rachel Lassiter, Bredesen’s deputy press secretary. “He hasn’t had a chance to respond to it.”

Norris represents part of Shelby and all of Tipton, Lauderdale and Dyer counties in the Tennessee Senate.