Kansas Gov. Kathleen Sebelius said last week she does not support an increase in state gasoline and diesel fuel taxes to finance a new 10-year transportation program.
The current gasoline tax is 24 cents per gallon, with the diesel tax slightly higher at 26 cents. Fuel taxes were raised in 1989 and again in 1999 to help fund highway needs.
Sebelius told reporters at her weekly new conference that she doubted the Legislature would raise fuel taxes when fuel prices are at all-time highs.
“I just don’t think it is very reasonable,” she said. “I don’t think that’s likely to get much traction from anybody.”
The state is currently completing a 10-year, $13 billion transportation program, and the Legislature is expected to consider a proposed new plan when it convenes in 2009.
The Kansas Department of Transportation has issued $1.3 billion of highway revenue bonds over the past 10 years, and received the proceeds from $210 million of bonds supported by the state general fund. KDOT revenue bonds have underlying ratings of AAA by Standard & Poor’s, Aa2 from Moody’s Investors Service, and AA from Fitch Ratings.
KDOT is now at the limit of its legislatively authorized bonding capacity, and would need specific approval from lawmakers to issue additional debt.
