Wisconsin Lawmakers Face Transportation Funding Dilemma Amid $4 Billion Surplus
MADISON, Wis. — As road and bridge construction intensifies across Wisconsin, state lawmakers are grappling with the future of transportation funding. With a projected surplus of nearly $4 billion, the immediate concern over the state’s transportation fund is alleviated for the next two years. However, experts caution that an ongoing reliance on general purpose revenue—generated via income and sales taxes—is not a sustainable solution.
Steve Baas, executive director of the Wisconsin Transportation Builders Association, emphasized the precarious nature of this funding strategy, likening it to “playing chicken with the economy.” He underscored the dilemma faced by communities and the state’s Department of Transportation (WisDOT) in balancing urgent local needs against statewide infrastructure demands.
While the surplus allows for funding local road networks and essential highways, it leaves gaps in resources for wider transportation needs. Baas advocates for a more robust, user-driven revenue model, proposing increases in gas taxes and registration fees, which have remained unchanged since 2006.
A recent report from the Wisconsin Policy Forum revealed troubling trends, with post-pandemic construction costs soaring nearly 26%, discordant with modest increases in consumer prices. It highlighted that funding models are becoming increasingly unsustainable, as revenues have dwindled to their lowest levels since 1998 when adjusted for inflation.
Despite the substantial surplus, Baas warns against procrastination in addressing the long-term funding issue, arguing that each temporary fix only postpones more significant challenges down the road. While tolling could potentially provide an additional revenue source, both Baas and Forum president Jason Stein deem it unlikely in the current climate due to high initial costs and potential impacts on federal funding.
As lawmakers finalize the next biennial budget, the choice between sustainable funding solutions and immediate fiscal comfort looms large over Wisconsin’s infrastructure future.
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