O’Dea Stands Against Toll Proposals

HARTFORD- With some state legislators eager to find additional revenue for Connecticut the issue of restoring tolls on major state highways like I-95 received a public hearing. New Canaan State Rep. Thomas O’Dea, a member of the legislature’s Transportation committee, said the state should dismiss the latest proposals to reestablish tolls on Connecticut highways.

“Bringing back tolls remains a bad idea for Connecticut,” said Rep. O’Dea. “One should not forget we eliminated tolls because of highway safety issues, including an accident that killed seven people at a Stratford toll booth. While newer technology such as EZ Pass has the potential to make tolls more convenient, one could also anticipate additional traffic congestion on local roads from people trying to avoid paying them.”

“The larger issue for us is: Why does Connecticut need the additional revenue,” said Rep. O’Dea. “Connecticut does not have a revenue problem; it has a spending addiction problem. The latest proposed state budget is a 9% increase in spending, when the state needs to rein in state government spending.”

The Special Transportation Fund (STF) is the chief funding source for virtually all transportation operating and capital expenditures in Connecticut. The fund was established in 1983, following the collapse of the Mianus River Bridge on the Connecticut Turnpike (I-95), to provide a dedicated revenue stream for transportation infrastructure projects and programs. The following year, the Transportation Infrastructure Program was established and the first Special Tax Obligation (STO) bonds were authorized. Special Tax Obligation bonds are special obligations of the State and are payable solely from the pledged revenues of the special transportation fund.

As state finances have fallen into deficit, the STF has become more and more vulnerable to raiding. Approximately $70 million was taken from special transportation fund in 2012 and put into the general fund, and now the governor has proposed to take another $75 million next fiscal year.

The Special Transportation Fund is supported by revenues from a variety of sources. These sources are considered to be “pledged revenues” under the terms of existing bond covenants. Because the revenues have been pledged to support outstanding bond issues any revenue sources which are reduced or eliminated must be replaced by other revenues.

They include:

• Motor Fuels Taxes, including the gasoline tax, the diesel oil tax (except diesel oil used for home heating purposes), and the Motor Carrier Road Tax paid by out-of-state truckers operating in Connecticut.
• A portion of the Petroleum Gross Receipts Tax, which is a tax levied on the first sale in Connecticut (generally from a wholesaler to a retailer) on a variety of petroleum products including gas and oil.
• Fees paid to the Department of Motor Vehicles for licenses, permits and fees.
• Sales tax paid on the private sale of motor vehicles (paid to the Department of Motor Vehicles).

O’Dea said, “Should the legislature reinstate tolls in Connecticut, I will seek to have said monies earmarked for STF fund and have our taxes reduced by the amount collected by the tolls.”

The Transportation committee heard testimony today that installing tolls in Connecticut could trigger the federal government to demand millions of dollars in reimbursements for federal transportation funding Connecticut was awarded when tolls were outlawed.