Ritter proposes hike in auto registration fees

DENVER • Citing "very serious concerns" about the safety of Colorado's roads and bridges, Gov. Bill Ritter on Wednesday announced a plan that would increase auto registration fees by an average of $52 per vehicle.

The initiative, dubbed the Funding Advancement for Surface Transportation and Economic Recovery, or FASTER, would funnel the increase in revenue directly into the Highway Users Tax Fund. The annual increase would be about $250 million.

That amount, however, falls far short of the number proposed by Ritter's own Blue Ribbon Transportation Commission, which reported to the Legislature last year that an increase of at least $500 million annually was needed to ensure the state's roads and bridges remain safe. To upgrade those roads and bridges would require an increase of $1.5 billion a year, the panel said.

Calling the fee hike a "moderate" cost to families, The Democratic governor said the increase is vital because the state's tight budget had left the Legislature with no other options.

Families are absolutely struggling, and we know that," Ritter said. "We believe this is necessary. This is really necessary for us to do this."

Who's opposed

"This is the exact opposite direction that we need to go in," said Sen. Bill Cadman, R-Colorado Springs.

Cadman pointed to parts of the bill that expand the powers of the Department of Transportation and enable it to impose user fees, issue revenue bonds, contract with private companies and enter into public partnerships.

"It just smells like Big Brother to me," he said.

Cadman said the place to start was with the state budget, which he argued is weighed down with "pet projects" like the governor's energy office and other "non-critical" programs.

Who's for it

The issue may well split conservative anti-tax Republicans with much of the business community, however. Already on board with the bill are the Denver Metro Chamber of Commerce, the Colorado Contractors Association, and the Colorado Asphalt Pavement Association. Other business groups, such as Colorado Concern, are also considering throwing their weight behind the measure. Also supporting the measure are Colorado Counties, Inc. and the Colorado Municipal League.

"It's basically a cup of coffee a month," said Tony Milo, the executive director of the Contractors Association, referring to the added annual cost to Coloradans.

Economic stimulus

Part of the bill's appeal, Milo said, is that the plan will help stimulate the economy by creating and protecting "tens of thousands" of jobs.

And at least one Colorado Springs Republican, though decidedly hesitant about FASTER, said Wednesday that a new revenue stream is needed to address the transportation funding gap.

El Paso County Commissioner Wayne Williams, who served on an advisory board to the Blue Ribbon Transportation Commission, said it's "clear that there's a need for more funding. It's just a question of how to meet that."

What's in it for us

Williams added that the Pikes Peak region should be given priority when it comes time to decide how to divvy up new funds, given that three infrastructure projects approved by state voters a decade ago have still not been completed - an expansion of I-25 through Monument and at Powers Blvd., and a reconstruction of the Peterson Air Force Base interchange. These combined projects would cost roughly $600 million, Williams said.

"If something is approved, it ought to provide funding for those existing promises," Williams said.

According to a report by the Colorado Department of Transportation, there are also a dozen bridges in El Paso County rated as "structurally deficient." Nine of the deficient bridges are on I-25 and the rest are part of U.S. Highway 24.

There are 126 such bridges statewide, and under the FASTER initiative, 125 of them would be repaired within four years.

What's next

The bill is sponsored by Sen. Dan Gibbs, D-Silverthorne, and Rep. Joe Rice, D-Littleton, but it won't be introduced for at least another week and will likely undergo a number of revisions.

In its current 71-page form, the bill would institute a graded auto registration fee scale according to vehicle weight, with heavier cars and trucks paying a heftier price because they take a higher toll on roads. There would be two separate surcharges, with one fee going to road maintenance and the other going to bridge upkeep. For example, a car weighing between one and two and a half tons would pay $23 for the road safety surcharge and $18 for the bridge surcharge.

The fine print

The bill would also:

• Create a $2-per-day fee for rental cars.
• Increase fines for late registration.
• Increase permit fees for larger vehicles.
• Establish a pilot program to test the potential for mileage-based fees.
• Expand the powers of CDOT to include creating new user fees, enter into public-private partnerships, issue revenue bonds, and expand tolling.

In addition, the measure could generate much more than $250 million in its first year alone by funneling $50 million into a Bridge Enterprise Fund to be used for bonding.

That could bring in as much as $400 million to "kick-start" transportation projects, said Milo.

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Contact the writer: 303-837-0697 or john.schroyer@gazette.com