LETTERS

A plan to finance road repairs

Posted 7/9/15

To the Editor:

In the June 23, 2015 Providence Journal article, “Toll plan moving too fast for some,” DOT Director Peter Alviti points out that only “20 bridge …

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LETTERS

A plan to finance road repairs

Posted

To the Editor:

In the June 23, 2015 Providence Journal article, “Toll plan moving too fast for some,” DOT Director Peter Alviti points out that only “20 bridge reconstruction/

replacement projects [are] being contemplated for tolling.” Tolls can “only create the revenue needed to fix the specified bridges we are going to be fixing.”  These facts indicate that the cost to build the required tolling infrastructure, the cost to provide tax credits, fuel and property tax rebates and the direct grants to shipping companies and the cost to pay the bonding interest fees would be so large that very little money would be left to repair or replace the 150 Rhode Island bridges that are structurally deficient.

The best way to fund the repair or replacement of Rhode Island’s structurally deficient bridges is to put a yearly $20 dollar surcharge on each vehicle liability insurance policy sold in Rhode Island, to increase the fuel tax by three cents per gallon and to put a $10 surcharge on each vehicle registration fee. These actions would raise $43 million each year to fund the required bridge repair projects. The average vehicle owner, who buys 600 gallons of gas per year in Rhode Island, would pay $43 per year in bridge repair charges.  

To get large truck owners, whose trucks pass through Rhode Island, to pay their fair share of the bridge repair cost, I would allow two truck stops to be built at the present rest areas on Interstate 295 in Lincoln. For large truck owners who buy their diesel fuel at these new truck stops, I would reduce the fuel tax by ten cents per gallon. Instead of passing through Rhode Island, many large trucks would stop at these new truck stops in Lincoln to fill up their 100-gallon tanks. For every 100 gallons purchased by each large truck driver, Rhode Island would receive $22 in fuel tax. This action would also reduce the number of large trucks that use I-95 in downtown Providence which will increase the service life of the new bridges now being built in downtown Providence.

The BRIDGE Act, now being worked on in the United States Congress, will provide Rhode Island with approximately $40 million each year in low interest loans to fund bridge repairs and replacement costs.   The large truck fuel tax revenue raised each year should bring the total amount available each year to fund these bridge projects to over a $100 million and most of this money would be spent actually repairing and replacing structurally deficient bridges. Construction industry employment would quickly return to pre-recession levels and Rhode Island’s income tax, sales tax and fuel tax revenue would also greatly increase.  Elimination of the car tax might be possible.   

Kenneth Berwick

Smithfield

Comments

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  • falina

    NO. MORE. FEES. AND. TAXES. Good God!

    Thursday, July 9, 2015 Report this

  • markyc

    Mr. Berwick, I/we appreciate your good intentions. However, your suggestion of a surcharge on auto insurance policies has ALREADY been done in the form of a surcharge on auto registrations; this has been phased in over three years & all that has happened is the RI GA/Governor has spent it on everything EXCEPT road repairs & maintenance! The State gas tax was just increased July 1st & will be increased every two years(indexed to inflation) with the same intention. Tolls will only force out of state truckers to find alternate routes to bypass RI; if they are only passing through this will be too easy & will likely lead to tolling of passenger cars when revenue projections anticipated aren't achieved. RI has a spending problem, NOT a revenue problem!

    Thursday, July 16, 2015 Report this