Perspectives

In the October issue, David Pampu examines the financial underpinning of Colorado's highway system, the motor fuel tax-both state and federal. While this user fee is supplemented in good economic times by General Fund transfers, this fiscal structure does not provide a growing source of revenue for maintaining, rehabilitating and reconstructing our highway system. The revenue structure has not kept pace with societal changes and the way we now build our infrastructure. Without changes to the revenue side of the equation we are faced with a permanent pothole-a larger and larger job with a virtually stagnant revenue stream that is actually decreasing due to inflation. The way we produce highway revenue must be modernized. His Perspective: "Generating new revenue is a political issue. Either existing revenue is diverted from other uses or taxes and user fees must be raised. While not a popular position in today's environment, new revenues that grow with system repairs, demand and inflation must be addressed by the political process. Like it or not, this may mean new taxes and user fees."

In the February issue, David examines how revenues sources influenced by the economy work to support transportation funding and the Colorado Highway Users Tax Fund (HUTF), the major revenue stream for transportation in Colorado. "If the economy slows and revenues don't grow sufficiently to surpass the state's Byzantine fiscal requirements, extra revenues don't flow to the HUTF. He examines the disparity in current projections for SB 97-1 and HB 02-1310 funds. His Perspective: "To sustain a well maintained and effective transportation system in Colorado requires a continuing, reliable and growing revenue stream. New revenues that grow with system needs, demand, and inflation must be enacted."

In the June issue, David Pampu examines investments in the Colorado transportation system in recent years, focusing on the state highway system as a top priority. His Perspective: "While the underlying foundation of highway revenue is the user fee assessed on motor fuel sales, in recent years Colorado has increasingly relied on state General Fund revenues to supplement user dollars to meet state highway needs. One significant effect of the TABOR amendment has been to eliminate the ability of CDOT to avail itself of these state General Fund dollars. That will change because of the passage of Ref C. The problem is that without a major investment of new dollars, Colorado will fall further behind, unable to make progress on the widening gap in transportation funding critical to our highway system. As we consider future transportation revenues, we need to think of our highway system as a top priority."

The Perspective series examines critical issues in transportation finance confronting Colorado. It is edited by longtime transportation planning expert David Pampu, who also serves as Policy Research Consultant to Move Colorado. During his tenure at the Denver Regional Council of Governments, David directed the Council's long-range planning activities including the agency's award winning Metro Vision plan for growth and development of the Denver region, its Regional Transportation Plan and Transportation Improvement Program. He is the recipient of the Roderick L. Downing Award for Outstanding Contribution to the Advancement of the Transportation System of the State of Colorado, presented by the University of Colorado at Denver and the Colorado State Department of Highways.

Future issues will include guest contributors and controversial issues.