DENVER – After a late night of hearing public testimony and considering multiple amendments, a legislative committee gave first approval to the state’s major transportation bill Thursday morning.
House Bill 1242 would use a mixture of existing revenue and a sales tax increase over the next 20 years to generate roughly $677 million annually to fund the expansion and maintenance of Colorado’s transportation infrastructure. The House Transportation and Energy Committee approved the bill on an 8-5 party-line vote, with Republicans opposing the tax increase.
Under the bill, the Colorado Department of Transportation would receive $375 million annually, which was increased from $300 million by an amendment adopted during the hearing, for the payment of a bond of up to $3.5 billion.
Seventy percent of the remaining funds would go to counties and municipalities, and the rest would go to a newly-created Multimodal Transportation Options Fund, which would provide matching grants for transit, pedestrian and active transportation projects.
The Republican opposition came as little surprise, as GOP leaders in both chambers of the Legislature have publicly denounced the measure, despite Senate President Kevin Gratham’s, R-Cañon City, sponsorship of the bill.
In part, opposition from Republicans is because HB 1242 fails to present a revenue-neutral solution in its first year by tapping into existing revenue.
This was brought up in the closing statements by Republicans late Wednesday.
“For me, before we go and have the conversation with the voters about more of their hard-earned money, we need to look at our existing resources and leverage those first before asking them for more, and that’s just not a part of this bill,” said Rep. Dan Nordberg, R-Colorado Springs.
Other concerns included the effect increased sales tax could have on small businesses that are struggling to compete with online retailers, and the fear that dedicating a set amount to CDOT could result in it receiving less funding than if it was given a percentage cut.
The proposed 0.62 percent increase in sales tax would be somewhat offset by the decrease in vehicle registration fees and elimination of late fees, which generate revenue for the maintenance of bridges and projects designed to increase driver safety on Colorado’s roads.
The elimination of late fees was the result of an amendment adopted late Wednesday night.
Another amendment reduced the matching requirements for the multimodal grants for small governments.
The bill heads to the House Finance Committee for consideration.
lperkins@durangoherald.com
