Suzio “Elated” That Malloy Administration Backs Down From CT Mileage Tax Study

Citing budget constraints, DOT withdraws from mileage tax study

 By Mike Savino

MyRecordJournal.com

 The Department of Transportation is withdrawing from a regional study into a mileage-based tax, citing budget constraints.

 DOT Commissioner James Redeker told the I-95 Corridor Coalition in a letter last week that the agency is “facing large budget cuts that prevent us from providing any state matching funds,” although he maintained support for the study.

“I continue to believe that this collaborative effort is a great opportunity to learn and gather critical information about a potential future revenue source,” Redeker wrote April 6 letter.

The state would have had to pay $300,000 for its participation in the study, with the federal government matching the contribution. Vermont, Delaware and Pennsylvania are also in line to participate in the study, which is scheduled to begin this summer and expected to cost a total of $2.98 million.

The study would examine the possibility of implementing a regional mileage-based tax across multiple states.

Connecticut’s participation had been hinged on its ability to find $300,000 within its existing resources, as the expense never appeared in Gov. Dannel P. Malloy’s proposed budget. Still, lawmakers from both sides claimed victory upon the announcement.

“I am pleased that the DOT has finally pulled the plug on the mileage tax study,” said Senate Majority Leader Bob Duff, D-Norwalk. “It was clear from the outset that the Senate Democrats opposed the mileage tax study. I am glad that the DOT is seeking to re-prioritize these funds in order to address critical projects.”

 Senate Republican Leader Len Fasano, R-North Haven, said it was “about time” the DOT backed out of the study, and blamed Democrats for not making the decision sooner.

“This issue could have been resolved months ago if Democratic lawmakers would have joined Republicans to vote against piloting the tax last session, but they refused,” he said in a statement.

“Nevertheless, I am glad to see Connecticut finally withdraw from the program and Democrats joining Republicans in claiming victory. The voices of the people of Connecticut were heard loud and clear.”

Republicans have been using Democrats’ reluctance to block the bill against them, even getting a bill out of the Transportation Committee that would have prevented the transportation commissioner from expending funds to participate in the study.

The bill passed 19-16, with Reps. Emil “Buddy” Altobello, D-Meriden, and Sean Scanlon, D-Guilford, being the only Democrats to support the bill.

Many on the committee, including the two Democratic co-chairman, said they didn’t support a mileage tax but felt the DOT needs to be able to study possible revenue streams.

 Sen. Len Suzio, R-Meriden, who introduced the bill, said he was “elated” that the state avoided the “extravagant, wasteful spending.” He also continued to disagree with claims from Democrats that the state needs to find new transportation revenues, saying Malloy’s 30-year, $100-billion plan is too ambitious. 

“I think if we passed the mileage tax, it would be the end,” he said. “We would definitely be finished, because it would be such a desperate move and it would say so much negative about the state.” 

 Suzio also believes that revenues into the Special Transportation Fund will out-perform projections from Malloy’s budget office, despite repeated warnings that the fund will be insolvent by 2022.

Altobello disagreed with Suzio.  He said his vote to block the mileage tax study was based on opposition he had heard from constituents, but he still thinks the state needs to find new transportation-related revenues.

“Looking down the road, we need to find a fair way to fund our roads and bridges, given that the electric vehicles are right around the corner,” he said, adding the gas tax “will no longer support the Special Transportation Fund.”