Argus Leader - Four Candidates for Senate Differ on Highway Funding

Press Release

By David Montgomery

With Congress scrambling for fixes to highway funding because of the near-bankruptcy of the federal Highway Trust Fund, only one of the four U.S. Senate candidates is endorsing an increase in the gas tax.

The federal gas tax of 18.4 cents per gallon was last raised in 1993, and has lost more than a quarter of its purchasing power since that time. As vehicles become more fuel efficient and road construction becomes more expensive, the federal Highway Trust Fund is facing bankruptcy in May.

Former Sen. Larry Pressler, running as an independent, said he would vote for an immediate increase 12 cents per gallon in the gas tax.

"I know any tax increases are politically unpopular, but we absolutely must rebuild our nation's highways, and we cannot add any more to the national debt," Pressler said in a statement.

Two other candidates didn't rule out an increase in the gas tax, but said other solutions need to be tried first.

"Until we exhaust every other option, I wouldn't consider a gas tax increase -- especially with this administration in control of the money," Republican Mike Rounds said in a statement.

Rounds said he would prefer to look at "spending reforms, alternative revenue options such as revenue from energy exploration on federal lands" or "reforms that provide greater flexibility to the states and local contractors."

Democrat Rick Weiland said he wouldn't "ask any South Dakotan to pay more taxes on gasoline."

Instead, Weiland said Congress should raise money by eliminating "subsidies" and "tax loopholes" to "big oil companies and other huge corporations." An increase in the gas tax, Weiland said, would be on the table only after "asking big corporations to pay their fair share" and providing people with more money in the form of a minimum wage increase.

Independent Gordon Howie said he opposes raising the gas tax -- and especially proposals to tie it to the rate of inflation. Instead, he said, Congress should pass laws benefiting the oil and gas industry, which he said would result in higher tax revenue as the industry booms.

"Some estimates have predicted that with pro-growth policies, the industry could bring in an additional $800 billion in revenue over the next 15 years," Howie said.

Among South Dakota's current members of Congress, Sen. Tim Johnson said a gas tax increase should be "one of the options considered" because the existing gas tax isn't keeping up with road construction needs. Sen. John Thune said he's open to more revenue in the form of a "user fee" on roads, but that new revenue would need to be paired with "spending reforms." Rep. Kristi Noem called for a "diversified revenue stream" and specifically called out "collecting royalties on offshore oil revenues."