Vehicle tax raise shelved, despite push from Ige
Despite a full-court press lobbying effort by Gov. David Ige’s administration, the proposed gas tax, weight tax and vehicle registration fee increases it proposed may be dead for the year.
The tax and fee increases would have raised an extra $70 million per year for the state Department of Transportation, but lawmakers maintain the department has been unable to efficiently spend the money it already has.
House Transportation Chairman Henry Aquino on Wednesday deferred Senate Bill 2938 indefinitely without allowing a vote on it.
“Before we do anything to increase fees or taxes, we want to make sure that everything is in working order,” he said. “We do understand the need for future funding for roads and bridges … but we just want to make sure everything is set and good before we move forward with any increases.”
Aquino (D, Waipahu) acknowledged the dozen members of his Transportation Committee showed strong resistance to raising the taxes and fees. The entire House of Representatives is up for re-election this year, and it would have been “very difficult” to persuade a majority of the committee to agree to the increases, he said.
Ige’s chief of staff, Mike McCartney, said the administration will try to salvage the bill before the session ends for the year.
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“We’re going to continue to work with the House and address some of the concerns that were there, but we’re going to need the money as we go forward down the road,” McCartney said.
Transportation officials said they need the extra tax and fee revenues to increase capacity on Hawaii’s roads and to reduce traffic congestion.
Without the extra funding from the tax and fee increases, several large projects, including the planned widening of eastbound H-1 lanes between Waiawa and Halawa will be delayed, said Edwin Sniffen, deputy director of DOT’s Highways Division. That project would essentially duplicate the widening already done on the H-1 westbound lanes.
“We were planning to push it into planning and design to put out a project in about 2019 for $120 million. We don’t have the $120 million now, so we’re going to have to pull back on that,” Sniffen said. “We’re going to have to delay it until we can build up enough funding to afford it.”
Another project that will likely be delayed is the Kahekili Highway widening project in Windward Oahu, Sniffen said. That project would expand the two-lane highway to four lanes from Haiku to Ahuimanu, and the state has already begun the environmental studies for it.
McCartney said, “The fact is that those projects need to get done, and we’re going to need funding for it, so the sooner we can get to it, the faster we can get them done.”
Ige asked lawmakers earlier this year to raise the state’s gasoline tax to 19 cents per gallon from 16 cents per gallon while also boosting the state’s vehicle registration fees and weight taxes, steps the administration estimated would cost a typical motorist about $83 extra per year.
The revenue from those taxes goes to the state Highway Fund, which finances road maintenance projects and new construction. The gas tax increase would have been the first since 2007.
The Ige proposals would have also doubled the tax on diesel oil to 2 cents from 1 cent per gallon, and increased the tax on aviation fuel to 2 cents from 1 cent per gallon.
The state DOT has been criticized by the federal government for being slow to spend federal funds it receives for highway projects, and lawmakers questioned whether it makes sense to raise taxes to provide more money to DOT until that issue is resolved.
The department has been allocated about $160 million each year in federal funds, and currently has nearly $600 million accumulated in unspent federal funding for highway projects in Hawaii.
Federal Highway Administration officials have warned the state it could lose federal funding if it doesn’t quickly spend that federal money, but state transportation officials say they have significantly reduced the backlog from a peak of about $940 million in 2010.
Aquino cited the federal funding issue Wednesday when he announced he would not allow the gas tax increase to advance.
“We understand the concern that the department has mentioned, but (with) the areas of concern regarding the backlog as well as DOT’s management up until this point, we feel that needs some tweaking before we consider any increases at this time, so we’re going to defer,” Aquino said.
The gas tax increase proposal has been strongly opposed by some members of the public, including Nanakuli resident DeMont Connor, who testified on Wednesday.
Connor told lawmakers that many West Oahu residents already struggle to make ends meet, “and we’re pretty much fed up with more taxes and more taxes and more taxes.”
71 responses to “Vehicle tax raise shelved, despite push from Ige”
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I’ve said it before and I’ll say it again: the 5-cent per gallon gas tax increase during the Cayetano administration that goes into the general fund should be re-diverted back to it’s proper place; the state DOT. And while they’re at it, claw back the funds since that diversion so many years ago. That should provide more than enough money to fund the projects that were mentioned in this article. Also, the barrel tax on oil should ALL go to the state DOT; not having some of it diverted to non-DOT uses. This will further provide additional funds for DOT projects. But we all know that won’t happen because the politicians do not have the will and fortitude to correct those past diversions of funds to non-transportation purposes.
Vote them all out. They are only refusing to raise the tax now because the election is 6 months from now. After the election, they bill will pass. The ones who are cautious will vote yes but “with reservations”.
Time to clean house on this legislature.
Ige is one and done.
So, so true. Yes with reservations voters should be crucified.
Absolutely, the general fund should be abolished and taxes paid should be channeled to the purposes for which they were intended. The general fund is a shell game.
good points. And the legislature was right to shelve the bill given the very poor financial record of DOT. Let us wait to see how they do on spending the $600 million left in federal money. The DOT spokespersons looked very bad in their report before the committee yesterday. They looked silly frankly and left us with no confidence in their competency.
Try reading the article again – the DOT already has $600 million of federal funding that they can use for their projects. Each year they get another $160 million from the feds. They do NOT need any more funding until they use that up.
Yipeeeeee!
Absolutely the right decision. lets hope they trash the Bill forever. Wow I am impressed that they stopped the tax increase and fees
totally surprised but impressed!!!!!
It only got shelved because this is an election year. Guarans it’s going to pass next year.
Agreed.
And what the heck does ” ..but we just want make sure everything is set and good..” mean? Are they making pudding?
Also agree. It’s a sad system we have when our legislators guide their thinking strictly by the election cycles rather than what’s good for the taxpayers. And, when you think about it in a one party State–who’s going to challenge them??? They have the Union and Lobbyists support–what else is there??
Ditto……..
Election year or no election year, I already know who in the committee proposed this and voted for this in the first place. Kicking the can down the road during an election year, doesn’t alter the fact they tried to screw us one more time. I’m voting against anyone on that committee who supported this dumb idea.
Who says we have ‘politicians’ amongst the legislators?
They’ll postpone a much needed Senate Bill 2938 asked for by the Gov’nor, hope to get re-elected for another term, then impose the Bill next year with no opposition.
Our legislators greatest strengths lay in the weakness of their convictions. They are nothing but a bunch of fiscally challenged parasites.
“The state DOT has been criticized by the federal government for being slow to spend federal funds it receives for highway projects, and lawmakers questioned whether it makes sense to raise taxes to provide more money to DOT until that issue is resolved.” Unbelievable. Yet, Ige wants to raise gas and vehicle taxes. What’s wrong with him?
They’re Democrats! Government expansion is a never-ending quest. Paying for it lies at the feet of every citizen that they view with total distain.
Can’t wait for Boots to blame this on the Republicans in Hawaii LOL
God ole Boots – he never met a Republican he liked…
You can thank Democrats for the increasing taxes and fees, as they continue their never-ending expansion of local government.
It’s scary that they want to make significant raises in taxes when tourism and tax collection is strong.
Absolute power corrupts absolutely
They’ve reduced the federal funding from $940 mil to $600 mil so in their minds its okay to raise our taxes, again! WTH is wrong with these people, that whole DOT needs to be reorganized they’re incompetent. The Feds give them money yet they can’t find anything to do with it so they raise our taxes! These “leaders” are brilliant.
Agree, this state of HI is a cluster…
but we’re going to need the money as we go forward down the road,” McCartney said.
You fools take in so much tax money and WASTE a vast majority of it. Get your act together and AUDIT the whole state Gov. You will find a lot of WASTE, FRAUD and I’m sure corruption. HOW SAD this state has a ONE SYSTEM controlling party with ZERO outside voice or opinion.
I thought I read some mainland states have $1000 administrative cost per mile of road paved and Hawaii’s administrative cost per mile is $90,0000. What gives?
All true. Thanks to union featherbedding, out of date technology (Paper shuffle) strict union rules which prohibit any tech upgrades or process improvements which would take away busy work from dues paying union members.
Expect the $90k to spiral up to over $100k in no time. Just another day in the little 8th world of Hawaii Nei.
But, Keolu’s comment is about admin costs, tech upgrades, and union members pay are direct costs.
And we don’t even seal the cracks in our roads with hot tar (like the other mainland states do) to pro long their life. In a heavy rain the cracks in our roads fill with water and turn into potholes within hours.
wave1–correct–just imagine if we had freezing like the majority of the states. Here–personally, I think we should use concrete.
Concrete will last longer over asphalt, but concrete is much more expensive. And state of HI cannot even do concrete right as demonstrated by all the potholes and exposed re-bar on the concrete paved portions of the H1. As I say, the state is a cluster….
These Demo clowns will pass this bill next year after the election. You can take that to the bank. Before that happens just vote them out this year.
How about pushing Ige out when his term runs out.
Can’t wait to vote out Ige. All he has done is spend tax and spend again. What a joke of a Gov.
That’s what you do with tax revenue, you spend it.
“We don’t have the $120 million now, so we’re going to have to pull back on that,” Sniffen said.”
Why does he sound like such a whiny baby? They have surplus federal funds they need to use. Why not use that before trying to raise taxes?
Great news. “the proposed gas tax, weight tax and vehicle registration fee increases are dead.” The $70 million it would have raised would have just been wasted by the massively inefficient DoT. Same DoT with a track record of failing to meet project deadlines and cost containment. Same DoT with an excessive overhead bureaucracy which leads the nation is wasted money per mile of road built.
“The department has been allocated about $160 million each year in federal funds, and currently has nearly $600 million accumulated in unspent federal funding for highway projects in Hawaii.”
So why more taxes when they stand to lose federal funds????
Shame on the Ige admin for trying to jack us once again. Get your own house in order before you drain the public
Let’s all applaud Representative House Transportation Chairman Henry Aquino and the House leadership for the courage that had in calling Governor Ige and his Administration to task. The Administration need to account for past incompetence and come up with a clear plan on how they intend to manage the program much more efficiently in the future. Simply hollering for more funds and crying wolf has fallen on the deaf ears of weary tax paying citizens. The proposed tax increases would harshly impact so many families who live paycheck to paycheck. I hope the feckless Senate will redeem itself by standing with the House in giving the various schemes to raise taxes a death sentence.
Agree…thank you house transportation chair…stand strong as the IGE administration tries an end around to pass this through later in the session. Gov IGE should honor his campaign promise to “re-engineer” state govt. Start with the DOT. They need to become better, faster, and cheaper. Also need to develop an accountability system for state management. Use the federal funds better and propose large scale traffic mitigation projects that will make a difference. Now, their cluster of small projects offer only marginal relief and while doing them the lane closures make traffic even worse and at all hours of the day.
Amen! As taxpayers, we are not people who pay our taxes just to keep bureaucrats happy and well paid. They are hired to properly and efficiently manage our resources. The phrase “public servant” has lost its meaning since we constantly hear government officials crying wolf while trying to justify taking more of our money. It seems we are working just to make sure that the government remains in the position of spending more and more of our money without needing to account. It seems we have an Administration without a conscience. Governor Ige may well be the second “one term” governor. Like Abercrombie, he gives no thought what it means to tax people to death.
How about we cut Governor Ige’s salary 50% to reflect his horrible track record as governor. Since he has done absolutely NOTHING to benefit the Hawaiian economy, cut his salary to reflect his non-performance.
The State collects the tax for the rail project and keeps a large amount. That is why there is shortage of funds for the City’s rail project. The State does not earmark those funds for roads,
but places into the general fund. The State first needs to cut unnecessary projects before raising taxes.
The DOT needs to be audited as to why they are inefficient. This issue regarding efficiency has been an issue in the last but obviously nothing was done. It is a top-heavy administration that need to be retooled and parts of the cog needs to be replaced and most of all there needs to be accountability at all levels of this department. I suspect that there are a lot of problems within this department and until we shake it up there will be continued problems and wasteful spending.
Ige got voted in because the majority of voters wanted Ambercrombie out. Now, in my opinion, Ige is heading down the same road. I empathize with those who say Ige should be one term. I’m feeling the same way. NEXT!
Yes, so true
Soon we’ll run out of anyone wanting to be governor. Hah! Just kidding!! LOL! There will ALWAYS be someone here that wants the cush job accomplishing nada…
One way the incompetent administration could raise some capital is try trimming the fat on the $90,000 per road mile administrative costs and I am sure if they look hard enough they will find other areas of wasteful spending but then again that would mean they would have to actually work and use their brains. As usual the only answer these clowns can come up with is raise taxes. It is time to vote them all out of office starting with Ige and Caldwell what an embarrassment that this is the best Hawaii has to offer.
Good news. I can continue driving my 4,500 pound Land Cruiser at the same weight tax fee. This rig comes in handy when hitting all the potholes on our roadways. And at 11 mpg, no increase in gas tax is nice too…
Yeah but even if your car is brand spanking new, you’ll need “safety inspections” EVERY bleeding year so someone gets a cut of something.
This is not an election year for Governor Ige so he can show his usual no compassion for the over-tax burden citizens of this State. When you read that Senate Bill 2938 will be shelved, in comes no compassion Governor Ige literally saying, TAX the over-burden taxpayers in this State…do it!!.
Most Democrats are like Governor Ige, spend, spend, and spend money that they don’t have. So their first resort, not the last resort, is go straight for our pocket book and caused a lot of depression for those who are trying to survive living in this State. Family heads are working more than one job to survive. My Goodness Democrats!!!!
What really concerns me that the Democrat control legislature will cave in to the greediness on the final day of this year’s legislature. I don’t give a damm if this Governor stands right next to this committee to approve this Senate bill 2938, I hope they don’t cave in, period. For me, I would have to sacrifice an additional $100.00 to pay for Ige’s increase. I wish this was an election year….
A few years ago, Forbes magazine ranked Hawaii as the worst place to make a living. I would answer blame it on the Democrats who have the power in this State, hook line and sinker since Statehood 1959.
What also burns me about some lawmakers are the ones who vote yes “with reservations”.
That means they are weak, spineless non leaders who are always playing CYA and should be terminated
All of you above who grumble about the Gov and the Dems who continue to wastefully spend our taxes and raise our taxes just amaze me. With all the anti-Democrat sentiment expressed here, how do these guys get re-elected. Without Mililani and East Oahu, there would be only Democrats in the House. Don’t you guys vote?
By the way, do you realize that a person on welfare in Hawaii gets over $60,000 in government benefits, the highest in the United States. That’s almost equal to $30 an hour for a working person, and it’s not taxable.
Department of Transportation,has been unable to efficiently spend the money it already has. Gov’nor wants gas tax increases in light of monies that have not been properly allocated. Possibly to use the extra money for other projects ?
I recall when Lingle diverted funds from the ‘Hurricane’ Fund to pay the teachers.
Business rules disallow co-mingling of funds. Perhaps the Gov’nor is building the ‘kitty’ to fund another worthy project-Homelessness.
It’s an election year so of course taxes and fees won’t be raised. A while longer with crappy roads!
Finally someone sees the mismanagement in State Govt agencies.
The fat lady has not yet sung. Gov Ige’s proposals are not dead. As chief of staff, Mike McCartney said, they will continue to work to pass the bills in the House.
Translation: They will be out twisting arms to get what they want.
Let your House Representative know, that you do not want them to cave on this issue and will remember how they vote come election time. But of course without anyone to vote for instead,
it is kind of an empty promise but that is a separate problem which will continue to plague us all here without a viable two party or three party system.
One comment I heard this morning from someone who was opposed to the governors proposals was that he could not understand why the governor was behind these tax increases other than
to say that Ige must not be very smart.
Just wondering where these politicians think we the tax payers can get more money? Our wages have been frozen for 8 years. Where do we get the money to pay these always increasing GET, property, and now gas and vehicle taxes?
Thank you. Thank you. Thank you. Most of the projects were terrible ideas anyway.
Rather than being more responsible with their budget, our government always takes the easy way out by raising taxes, fees, and fines. Most people get an average of 3% raise (if any) but you see all these high single digit and double digit raises everywhere. Now they want to raise our gas tax by 18.75%, vehicle registration fee by 70%, and vehicle weight tax by almost 57%!!! These people that approve these raises can afford these raises but what about those that are struggling to get by. It is no wonder that more people end up being homeless or become more dependent on government in order to survive.
I must be dreaming; they did what??
If passed the Dept of trans would never see the money. It would go straight to the general fund.
They are going to wait until the elections is over. They know this because we are fools for voting for them over and over again! & When they are once again comfortably back in the “Square Building”,than they’ll raise those taxes!! Watch I’m not lying!
Career politicians are not usually known for their intellect,but they are very smart when it comes to saving their seat .Especially during the voting season…..just vote them out!! Time to Wise up Hawaii! Imua
So, basically the legislature would have passed this bill, but since its an election year it was tabled. Not because their constituents were outraged, not because DOT could not spend 600 million in federal funds, I have no faith in our state government. Its time for a change.
I am so mad at this greediness of this Democrat Governor Ige that if there was a petition to recall Ige, I would sign it. But recalling a Democratic Governor in liberal Hawaii where the Democrats owned the State government, has little chance or FAT CHANCE.
The real problem is people who are suffering with the addicted TAX increase Democrats, don’t vote comes election time to make that desperate change at the State Legislature.
Remember the Hurricane tax fund? The Democrats took it out to balance their budget because of their spending. Money they don’t have.
We all hope the State House will not cave in to Governor Ige and his staff and bring up this Vehicle tax bill that has been shelved.
Send an email to every legislature and let them know that they need not be pushed around by the greediness of this Governor…
Huge federal highway funds that DOT-Highways cannot figure out how to use and Ige and useless Sniffen want more to build up a war chest at the expense of the overtaxed public. Ridiculous, DOT-Highways needs to design something besides narrowing lanes and eliminating shoulders which are safety hazards or allowing vehicles to speed along debris filled shoulders at rush hour. No planning worth a damn and poor road maintenance. 2 weeks of supposed pothole patching in Pearl City/Aiea and still large potholes remain.
When is DOT going to replace the lane markers in Pearl City and remove all of the old adhesive. Hard to tell if you are in your lane and especially if it is raining. Poor oversight and acceptance of shoddy work.
Doesn’t the Feds require a percentage of matching State funds to expend the Federal monies? Can’t use all the Fed funds unless we have the matching State funds.
All the articles regarding the $600 million accumulated federal funds never said that.