From Cos Cobber, this link: Connecticut Department of Transportation busted flat.
The Connecticut Department of Transportation is so overleveraged by its current rail and roadway projects and budget, it will lose the ability to borrow money for new projects by 2014, said DOT Commissioner James Redeker during a transit forum on Monday.
Redeker said ConnDOT is slated to lose its bonding ability in the next two years because the agency simply does not have enough money left in its budget to take on new debt service.
Gov. Dannel P. Malloy also attended the forum, where he announced the creation of a new interagency workgroup to address Connecticut’s transit-oriented development needs.
There’s a 42 cents tax on every gallon of gasoline sold in Connecticut which produces annual revenue of $491 million. Despite Governor Malloy’s promise to spend “every fuel tax dollar on transportation”, he and his fellow Democrats never even pretended to honor that pledge and took at least half of the gross revenue tax proceeds last year and spent them on more politically popular purposes. It’s safe to assume that the same thing will happen this year.
So what happens when another bridge collapses and we don’t have the ability to borrow to fix it, having long ago lost the ability to pay for it in cash? More taxes, of course – always, more taxes.
P.S. Here’s an amusing side note about the gross revenue tax on gasoline that doubles the tax we pay for fuel in Connecticut. In was enacted in 1981, a time of record oil company profits, as a “punish big oil” populist bill, whooped past the voters with a provision that forbade the tax from being passed on to consumers. Say what you will about the cretins running our state, even the dumbest bartender/senator from Wallingford knew that the anti-pass-through provision was illegal and would not stand – they included it only to provide themselves political cover. Down the street at UConn Law we were laughing at the protestations by our representatives that this would be a tax on oil company profits, not drivers and home owners, and if 3L students could see through the charade, is it possible that 300 lawyers in the Capitol couldn’t?
When, inevitably, that portion of the law was struck down the legislature refused to concede its “mistake” and repeal the tax, even though it was now a direct tax on their constituents and not Big Oil. Thirty-one years later they’re still spending that tax and Malloy, in fact, is trying to raise it. Happy motoring.