Plan for transit funds?
S.L. Chamber may push tax hikes for projects
By the end of the week, the Salt Lake Chamber expects to unveil a plan to speed the construction of "key" road and transit projects in the state, including reconstruction of I-15 in Utah County and expansion of the Utah Transit Authority's light-rail and commuter-rail systems.
And tax increases of all kinds are on the table, according to a study released Monday by the chamber's 2015 Transportation Alliance a group formed to accelerate funding of key transportation projects in the state.
"The study made clear that it will take not only multiple but new sources of revenue," said Natalie Gochnour, vice president of policy for the Salt Lake Chamber. "Transportation is the lifeblood of our economy. The need is absolutely there, and the cost of inaction is significant."
Recommendations by the chamber this week will include how to fund the construction of four new TRAX lines within Salt Lake County. UTA has proposed that the Salt Lake County Council issue a bond of $895 million to be repaid with a property-tax hike.
But the chamber's study shows a general sales tax increase would allow even more than the four TRAX lines to be built commuter rail to Utah County and Bus Rapid Transit could also be financed. And that might not aggravate as many large business owners, who have expressed serious concerns about a property-tax hike, according to Gochnour.
The Utah Legislature would need to give UTA approval to go to the ballot and ask voters to OK a sales-tax hike. For a property-tax increase, UTA would only need permission from the county where taxes would increase, according to state law.
The Salt Lake County Council is currently debating whether to put a UTA plan to raise property taxes on the ballot. County officials are concerned the property-tax burden would be too much for county residents to bear if the $895 initiative makes the November ballot.
Across the country, several states have turned to the ballot, through citizen referendums and initiatives, to help fund transportation needs. The key with a referendum, according to Tom Warne, president of Tom Warne and Associates, is to be specific.
"The public is wary of just giving money to government agencies and telling them to 'do good things,'" said Warne, former executive director of the Utah Department of Transportation. "The key is to be very specific about what the project is, how much will be spent, give a time line and generally a sunset provision."
E-mail: nwarburton@desnews.com
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