Proposed fuel tax increase dies in House

CASPER — A bill to put more taxpayer money toward Wyoming’s underfunded highways won’t be going before lawmakers this session after all. 
Bills had to be introduced within the first five days of this year’s legislative session to be heard. But last week came and went without a vote to introduce House Bill 14. 
If passed, the bill would have raised Wyoming’s fuel tax from 24 to 39 cents per gallon — giving the Wyoming Department of Transportation (WYDOT) about $60 million more annually. 
Proponents of House Bill 14 said it would help prop up a department badly hurting for funds.
WYDOT — which is in charge of maintaining and patrolling the state’s highways, as well as issuing licenses and permits — doesn’t have enough money to pay for all of its operating expenses. 
Wyoming has known that for years, but things got worse in 2020. Under Gov. Mark Gordon, Wyoming took on additional budget restrictions as it stared down an economic downturn brought about the coronavirus pandemic and a struggling energy industry. 
That year, the state hired outside consultants to put a number on WYDOT’s budget shortage. The Seattle-based firm Dye Management Group concluded the department was underfunded by about $350 million a year. 
In a meeting to the Joint Transportation, Highways and Military Affairs Committee, Dye Management Group president Rob Zilay said WYDOT’s budget problems could get worse — and more costly — the longer the state waits to do something about it. 
By raising the state fuel tax 15 cents, House Bill 14 aimed to address that deficit. 
The bill wasn’t meant to solve all the department’s problems — money pulled from the tax would only go toward highway construction and care. The transportation department couldn’t use the funds for anything else. 
The bill’s prospects were looking up in December, when the transportation committee voted to sponsor it 9-2. 
But even with committee backing, it wasn’t introduced this legislative session after all. 
The tax hike was “controversial,” Rep. Donald Burkhart, R-Rawlins, said in an email, “especially in light of the amount of money coming from the federal government to Wyoming for highways, airports and other portions of our infrastructure.” 
An infrastructure bill passed by Congress last year is expected to funnel $1.8 billion toward Wyoming’s highways. 
On top of that, a recent public opinion survey by the University of Wyoming and SDR Consulting showed most Wyomingites were opposed to raising the fuel tax. 
Some lawmakers in support of the tax think it should go up by a lower margin. A bill considered during last year’s legislative session, for instance, would have raised the tax by 9 cents per gallon. That legislation died in the House. 
Burkhart originally pushed for a 2-cent increase for this year’s bill. In any case, legislators need more time to settle on a magic number, he said in the email. 
Since it’s a budget session, the bill would have faced other obstacles, too. During budget sessions, non-budget bills must pass a two-thirds introductory vote to be considered by lawmakers. 
The federal infrastructure funds is expected to give Wyoming’s highways a major boost in the coming years. But officials are concerned money from above won’t dig WYDOT out of its hole, WyoFile reported last year. The department needs a sustainable funding solution, they said. 
Until that happens, WYDOT is taking a triage approach to maintaining the highways.

The department doesn’t have the money to build out its roads system, so the main priority is looking after what’s already there, public affairs officer Doug McGee said. 
WYDOT calls this “pavement preservation mode,” he said. 
Employees around the state keep an eye on the stretches of highway in their territory, he said. They monitor things like road conditions, traffic and population growth to figure out what projects are most urgent. 
“We’re doing the best we can,” McGee said.
 
This story was published on Feb. 25.