Lawmakers Debate Plans For Motor Vehicle Fee Increases

HARTFORD (AP) –– Lawmakers are considering a plan that would increase state motor vehicle fees to help alleviate gridlock on Connecticut highways.

Everything from driver’s licenses to snowmobile registrations would jump a few dollars.

Republicans oppose the idea. They claim taxpayers already face hundreds of millions of dollars in increased taxes this year. But Speaker of the House Moira Lyons, D-Stamford, said the legislature needs to increase revenue to combat traffic congestion, especially along the clogged I-95 in Fairfield County.

The Transportation Strategy Board, which oversees the state’s transportation policy, has identified about $35 million in transportation projects that would target traffic congestion. The board has recommended everything from buying additional rail cars along the Metro North commuter line to expanded bus service in Fairfield County.

In January, the board unveiled a ten-year, $5.5 billion plan for fixing Connecticut’s traffic problems.

“There has been discussion about the concerns about traffic throughout the state,’’ said Ms Lyons, who helped establish the strategy board. “You have to get [the money] from somewhere.’’

Legislative leaders debated the idea Tuesday as they tried to finish work on several bills that include details of the new, two-year $27.5 billion budget. Lawmakers are under the gun to finish the budget implementation bills before Saturday at midnight –– the deadline for Gov John G. Rowland to sign or veto the budget bill.

It is unclear whether the transportation plan would be woven into one of the remaining implementation bills or the bonding bill, which legislators do not plan to handle until next week.

The budget bill already raises $15 million this fiscal year and $10 million next fiscal year from other Department of Motor Vehicle fee increases. Funding also comes from a portion of the state petroleum tax –– a five percent gross receipts tax on petroleum products delivered to Connecticut.

The additional fees that lawmakers are considering now would raise about $20 million annually. They include raising the two-year motor vehicle registration from $70 to $75; a four-year driver’s license renewal from $35 to $43; a driver’s license exam from $36 to $40; and snowmobile and all-terrain vehicle registration from $14 to $20.

Senate Minority Leader Louis DeLuca, R-Woodbury, said such fee increases are new to him. He said they were not included in the transportation bill that went through the legislature this year.

In fact, Ms Lyons had been considering increasing the gasoline tax or funneling part of the corporation tax surcharge to help finance these transportation projects.

“We’ve been against supporting those types of increases in fees,’’ Mr DeLuca said. He said they would hurt middle class taxpayers, a group the Democrats have said must be protected from higher taxes.

The Transportation Strategy Board originally recommended the legislature create a dedicated revenue stream for projects that would help reduce gridlock, using higher gas, sales or income taxes.

But Chairman R. Nelson “Oz’’ Griebel said the group pulled back its recommendation, because of concerns about tax increases during budget difficulties.

Mr Griebel said he wants the legislature to simply endorse the blueprint the board presented in January. Money for the projects could be found in future years, he said.

Ms Lyons disagrees. She said now is the time to start building a pool of several hundred million dollars over the next decade.

“The strategy is as good as the money you have that implements the strategy,’’ Ms Lyons said.