Editorial: Justify need to hike vehicle, gas fees

Isle drivers are reminded of it every time they hop into the car and head for the highways. All the bumps, thumps and rattles they hear — and every car repair bill that results from the jostling — are the clearest indicators of the sorry state of Hawaii’s roadways.

Gov. David Ige surely is hoping that the noise and vibration might be jarring enough to make the state’s drivers willing to pay more in taxes and fees to finance road repairs.

Although getting consensus on an unpopular act such as tax increases is never an easy sales job, it might be possible this legislative session. But first, the administration must convince lawmakers, and the public, that the state Department of Transportation has improved operations enough to deploy the added resources more efficiently than it has done in the past.

At issue is the administration’s hope to increase the state gasoline tax, weight tax and vehicle registration fees. Officials have projected that the boosts could yield $40 million in added revenue every year, for road maintenance and other projects.

In companion bills submitted to lawmakers Monday, the administration proposed increasing the state’s per-gallon gas tax from 16 cents to 21 cents for motorists statewide.

Drivers have had a respite between increases in the gas tax, which rose to 17 cents in 2007 and then dropped to 16 cents three years ago. The vehicle registration fee, which would rise from $45 to $50, and per-pound weight tax, proposed to go from 1.75 to 2 cents, were last notched up in 2011.

House Bill 1054 and Senate Bill 1280 were introduced as the session began, signalling the priority Ige is putting on infrastructure.

DOT listed the “additional routine maintenance requests” that need financing, dividing the needs into three buckets:

>> Safety improvements, such as gateway systems, flashing beacons and raised pedestrian crossings.

>> Operations, such as contraflows, traffic control and equipment and vehicle replacement.

>> Maintenance, such as pothole repair, landscaping and vegetation control and pavement preservation.

Statewide, the annual grand totals would amount to $38.68 million for fiscal 2019 and $39.06 million for fiscal 2020. About $15 million of that each year is for Oahu.

On top of that, some revenue has been trickling away, as electric vehicles for which no gas tax is paid become more popular. It’s just the start of that trend line, but EV adoption doesn’t bode well for tax coffers, going forward.

And the stress on highways is not going to lighten up. The network of roads is relatively small, accommodating a relatively large commuter base, especially on Oahu. As all those cars funnel through limited and narrow transit corridors, the pavement takes a beating, one that’s hard to keep repaired with Hawaii’s small tax base.

Last October, Honolulu ranked No. 5 on a list of 20 large urban areas across the U.S., published in the report “Bumpy Road Ahead: America’s Roughest Rides and Strategies to Make Our Roads Smoother.”

Within the top-20 list, Honolulu had the highest share of major roads and highways in poor condition, according to the report by TRIP, a nonprofit research organization. And the city ranks No. 8 with the highest annual vehicle operating costs as a result of driving on roads needing repair.

So there is a case to be made for increasing road improvement finances. But there’s a counterargument as well, and lawmakers should pose some hard questions to DOT as the legislation makes its way through committees.

PRIMARILY they need to assess how well the money will be managed. In past years, the Federal Highways Administration has criticized the state for allowing a pool of unspent federal dollars to build up in what officials call “Pipeline” funding, reaching a high of $940 million in 2010.

The governor has touted great progress in spending down roughly half of that; about $450 million remains in the Pipeline. Lawmakers should want to learn more about how its handling has changed.

This is a separate issue from the tax-supported highways fund, but management approach is relevant to both. It won’t do to tap Hawaii’s hard-pressed public for taxes and fees if there’s some chance the money is simply going to sit or, worse, be wasted.

Two years ago the governor decided to defer most major new projects aimed at increasing highway capacity and turn the focus of DOT from large public works efforts to highway maintenance. That made sense, but an acceptable source has been elusive.

Last session lawmakers decided to limit the DOT take to a daily $2 daily surcharge put on car rentals borne largely by tourists. That, said Deputy Director Ed Sniffen, enabled DOT then to pare down the increases Hawaii commuters would pay.

Legislators might take the political hit for any new increases, but that depends on Ige and his team making a persuasive case that the money is needed, unavailable elsewhere — and bound to be spent wisely.