Transportation Co-Chair Plans Proposal to Provide New Revenue Source for Transportation Fund

Sen. Jeff Rabon on Wednesday announced he would pursue an effort to provide an additional and permanent revenue stream for the State Transportation Fund.

The Co-Chair of the Senate Transportation Committee has proposed a plan to reallocate a portion of motor vehicle taxes and fees from the General Revenue Fund to the State Transportation Fund. Rabon’s proposal would not reduce the percentage of revenues currently dedicated to the General Revenue Fund.

“This is a proposal that protects revenues dedicated to education and other essential services, while providing us with a much needed funding boost for transportation,” said Rabon, D-Hugo. “It’s always been my opinion that we could come up with a responsible proposal to increase transportation funding without hindering our ability to adequately fund education, health care and municipal governments. This plan gives us a chance to demonstrate our commitment to improving our roads and bridges.”

Instead of reducing the percentage of motor vehicle excise taxes apportioned to the General Revenue Fund, Rabon’s proposal would create a maximum level of revenue to be apportioned to the fund. The proposal would freeze the maximum amount at $245,000,000 and any amount greater than that would be apportioned to the Transportation Fund. Rabon noted it was not only important to protect funding dedicated to school districts and municipal government, but county roads as well. Currently, 13.45% of motor vehicle excise tax revenues are apportioned to county roads. Rabon’s proposal would not reduce that amount.

“This is an issue that concerns the safety of our families and the strength of our economic climate as we head into our state’s second century,” Rabon said. “It’s imperative that we make a firm commitment to increasing the amount of revenue we dedicate to improving our state’s transportation infrastructure. It’s time for us to rebuild Oklahoma’s roads and bridges and lay the foundation for real economic growth.”

Based on the State Board of Equalization’s fiscal year 2008 certification, Rabon’s proposal would result in the Transportation Fund receiving an additional $18,840,000 in 2008 and an additional $1,939,000 in fiscal year 2009. Rabon plans to offer the proposal as an amendment in the coming weeks.