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Mayor's Office

2006 Media Releases


Date:
March 1, 2006
For More Information Contact:
Diane Gonzolas, Citizen Information Center, 441-7831


MAYOR SENG ADVOCATES MORE FAIR DISTRIBUTION OF ROAD FUNDS

“I am pleased to be here today with Mayor Fahey and Senator Beutler to discuss an issue of critical importance to the State of Nebraska. Nebraska’s cities are facing an infrastructure crisis that threatens our State’s economic growth.

“Infrastructure is key to attracting jobs. The City of Lincoln has an estimated shortfall of about $135 million for street needs. While Lincoln is growing and adding jobs now, we know the looming shortage of street funds will hamper our growth, our job creation and economic development. The only thing that holds Lincoln back is a shortage of street money.

“The current distribution of gas and motor vehicle sales tax revenue adds to the problem. Cities like Lincoln and Omaha and many other communities contribute far more in gas and motor vehicle sales taxes then we receive back in road construction money. Lincoln gets back only 29 percent of the money that Lincoln drivers contribute to the highway fund. By contrast, the State of Nebraska receives back from the federal government’s gas tax formula more than 90 percent of what it contributes.

“Cities fuel the State’s economic engine. If the cities’ economic development begins to suffer because of a lack of infrastructure, the State also will be hurt from drops in sales and income tax receipts.

“We will ask the Revenue Committee to begin to address this imbalance by passing LB 935. The bill will bring new roads monies to Lincoln, Omaha and all Nebraska cities by providing a higher return of what we contribute in roads taxes. The bill will not increase taxes. It will boost the economy. It divides the money using a simple and fair formula based on population.

“LB 935 restores some fairness to our state system of funding local streets. It will help our local governments build roads to encourage growth and attract new jobs across the State.

“LB 935 is simple, fair, and will create economic growth in our communities.”


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