Editorial

Ending the diversion of funds

Friday, October 22, 2004

The proposed Amendment 3, which will be on the Nov. 2 ballot, is an opportunity for Missourians to make sure most of the revenue from transportation taxes and fees goes to the Missouri Department of Transportation for highways and other transportation needs across the state.

Over the years, portions of the revenue from such things as fuel taxes and auto registration and license fees have been designated for expenses incurred outside MoDOT's operations. This includes some funding for the Missouri State Highway Patrol and the Missouri Department of Revenue.

The amount of these diversions of revenue, however, has not been based on the actual expenses incurred by the highway patrol or revenue department. Amendment 3 would limit those diversions to actual expenses incurred.

As a result, proponents say as much as an additional $160 million a year would be available to MoDOT for its programs.

Until just a few years ago, the diversion of some transportation-related revenue wasn't an issue, because the growth in state revenue more than kept up with state spending needs. But when the economy tanked a few years ago, Missouri's budget was caught in a squeeze of not enough revenue to meet spending demands.

MoDOT was particularly affected in that squeeze. Several alternatives were sought, including a tax increase for highways, but Missourians have made it clear they aren't interested in statewide tax increases right now.

Amendment 3 moves diverted funds back to MoDOT, which could use the revenue to make payments on additional transportation bonds.

Moving the funds to MoDOT means some state agencies that have benefited from revenue diversions will have to find other sources of funding.

This task would likely fall mainly to state legislators as they work on future budgets, if Amendment 3 is adopted.

This is a reasonable challenge, in light of the state's transportation needs.

-- Southeast Missourian