Posts Tagged ‘Curtis Smith’

I’d gladly eat crow, but my foot’s in my mouth

Monday, December 20th, 2010

Sometimes, it seems, I only take my foot out of my mouth to change socks!

First, a little background. A couple weeks ago two folks came into the York News-Times office for an interview. Not surprising, it happens nearly every day. But our radar went off when we found out they were promoting an agenda that would benefit them both at our financial expense. And by “our expense,” I mean Nebraska taxpayers.

Curtis Smith, executive director of the Associated General Contractors of Nebraska, and lobbyist Mary Johnson were out trying to sell the idea of raising gas taxes 10 cents a gallon, which would cost Nebraska drivers an extra $120 million. They wanted to use the money for road construction and repairs. Good idea, the construction and repairs. Bad idea, the additional taxes. Obviously, Smith the contractor and Mary the lobbyist would benefit, and we would foot the bill. It’s how the government’s appropriation process works … messy and filled with special interests, but legal.

Smith and Johnson were also keen on the idea that state Senator Deb Fischer, chairperson of the Legislature’s Transportation Committee, was working on a plan to increase the Department of Roads budget by $100 to $125 million because the need is great and the current funding is inadequate.

This is where I bit into my size 11s, because while writing about that creepy 10 cent a gallon gas tax plan, I said Sen. Fischer has never met a gas tax she didn’t like. She got wind of my opinion column and her staff contacted me the next day, saying her plan would not contain any new taxes. Yeah right, I thought.

The next day the York News-Times received a press release from Fischer’s office summarizing her plan, and lo and behold, no new taxes! (It was time to change socks, then dine on a feast of crow.) She wants to set aside half of 1 percent of the state’s current sales tax and dedicate those dollars solely for the roads and infrastructure needs in Nebraska. It would come to about $125 million a year. It’s a fantastic idea!

And here’s the best part. That money would have to come out of the state’s other funding obligations. Net result? Better roads, no new taxes, smaller government. It is an outstanding plan, but with one small missing part. Fischer does not suggest what state departments or agencies will be short-changed. That, she said on a Lincoln radio show, is up to the legislature and the upcoming session where they will face difficult decisions on how to make up for a billion dollar shortfall in revenues.

In the past, as recently as 2008, Sen. Fischer tried to create a dependable road revenue source using the gas tax formulas, changing from a flat per gallon tax to a fixed percentage calculation with biannual adjustments. The problem is that gas prices fluctuate too much, and the allowable tax adjustments are not enough to keep up with the ever-increasing demand for new construction and repairs on the state’s highway system. It was a bad piece of legislation then and still is today.

This time the senator has it right, for a couple of reasons. First and foremost her plan would go a long way in solving the road funding issue, finally allowing Nebraska to complete its expressway system and maintain our roads and bridges in a manner which would benefit citizens, improve safety and aid economic development, all at the same time.

The second reason she has it right is that the current economic recession has forced Nebraska to reprioritize the state’s responsibilities. Fischer said in her press release, “The state faces a serious budget crisis in the upcoming session, and the Legislature has a great opportunity to truly determine the core functions of government and the priorities of Nebraska,” Senator Fischer said. “I believe those core functions include four areas: education; highways and infrastructure; public safety; and taking care of those who truly cannot care for themselves.”

This is Senator Fischer’s way of saying let’s put our money where our mouth is and get back to fulfilling the primary duties of state government, and that there are going to be some departments and agencies, lower on the priority pole, that are going to get their budgets cut.

If I read the tea leaves correctly, then “Way to go!” Sen. Deb Fischer.

Now the real work begins, and no doubt it will be an emotional session, filled with threats of reduced state services and special interest groups lining up for their slice of the state’s pie. But as Sen. Fischer said, this is an opportunity. She is right.

Also in her press release, she said, “Highways are different than other areas of government. It takes long-term planning and long-term financing for government to supply an adequate transportation system for its citizens.” Here, she is wrong. Highways are no different. All of our state’s government should have been conducted with long-term planning and long-term financing, and because it wasn’t, we have grown Nebraska’s government into a monster we can no longer afford to feed.

So, Sen. Fischer, I agree, this is an opportunity. Let’s all take a deep breath, be sensible, fund our state’s core priorities, and for crying out loud, let’s all get our foot out of our mouth, change socks and get to work!

You go to work and cut us out a state government we can afford and I’ll slice off another hunk of crow!

Are gas taxes going up 37 percent?

Monday, December 13th, 2010

State gas taxes may be going up 37 percent if Curtis Smith, executive director of the Associated General Contractors of Nebraska and lobbyist Mary Johnson have their way. They came by the York News-Times last week looking for some free publicity and a chance to get ahead of what could and should be a public outrage if they are successful.

Here we are, in the middle of a national recession — a deep and painful one for sure — and they think raising taxes will be one of the answers to our problems. I think they are completely wrong. I understand their motive, in fact I agree with it, but where they lose their minds is how to pay for it.

Pay for what exactly? Roads. They say Nebraska’s roads and bridges need help. I agree. You probably do too. They say good roads are key factors in maintaining and growing Nebraska’s economy. I agree. They say building roads puts people to work. I agree. So you see, their motive is solid.

Where their plan turns into a pothole is when they begin to misrepresent the facts. Here’s one. “Nebraska ranks relatively low in the nation for gas taxes,” Smith said. The fact is Nebraska ranked 19th, 31 states had lower gas taxes. Smith was wrong. The truth is Nebraska has the highest gasoline tax from the Mississippi River to the Nevada state line, and from Texas north to the Canadian border. Another ten cents would put Nebraska in the top six for highest gas tax.

Right now our gas tax, according to Mary the lobbyist, is 45.7 cents a gallon. The fed’s portion of that is 18.4 cents, leaving Nebraska’s gas tax at 27.3 cents, and they want to raise it a dime a gallon. That’s a 37 percent increase, and that is nuts! I think Mary and Curtis have been inhaling too many diesel fumes if they think higher taxes will attract new business to our state.

It gets worse. Senator Deb Fisher, the state senator who never met a gas tax she didn’t like, is working on a plan to increase state road funding by $100 to $125 million. Personally, I think that is a good idea. I’m just saying, not with any new taxes. If we want to spend additional money on the roads, we should take it away from other departments or agencies, because the fact is, Nebraskans cannot afford to be taxed any more.

Here’s what is comes down to: What is the role and responsibility of the state government? And what are its priorities from the most important down to the least important? One might look at the Nebraska State Constitution for some help.

The top state responsibilities might be: (1) Due process of law and law enforcement. We want justice don’t we? (2) The state legislature. We want representation I’m sure. (3) The state treasurer. Somebody has to manage Nebraska’s finances. (4) Education. This is a big one and a top priority of state government. (5) Roads, another big one. I think everyone would agree. (6) Game and Parks. The state has set aside public lands for its citizens and no doubt there is an expense to maintaining them. (7) Secretary of state; primary responsibility is to conduct honest fair elections, a must in any democracy.

What else do you want from your state government? It gets a bit gray from here on down. Remember, Curtis Smith the contractor and Mary Johnson the lobbyist think the only way to get their roadwork done is with new taxes. I disagree. (Under their plan drivers in Nebraska would pay an additional $120 million in NEW tax!) Might they look at other state agencies that are not at the top of the priority list, instead of just figuring out another way to tax us?

Could we shift some monies from the Public Service Commission, $78 million in the 2010-11 budget? Agriculture Department, $18 million? Department of Labor, $46 million? Motor Vehicles, $26 million? Game and Parks, $81 million? Natural Resources, $23 million? Economic Development, $45 million? Hey, I’m not saying we don’t need these departments, I’m just saying when times get tough the state’s money, (our money) needs to go first and foremost to the most important priority. Roads are definitely a top priority.

And do we really need to spend millions on a variety of other agencies and boards? I’ll let you be the judge: Aeronautics $22 million, banking $6 million, fire marshal $11 million, electrical board $1.5 million, Library Commission $5 million, Liquor Commission $1 million, Racing Commission $1 million, Brand Committee $4 million, Real Estate Commission $1 million, Barber Examiners $147,000, Historical Society $7 million, Wheat Board $1.3 million, Ethanol Board $500,000, Dairy Board $1.4 million, Mexican American Commission $230,000, Arts Council $3.5 million, Industrial Relations $300,000, Dry Bean Board $380,000, Corn Board $5.3 million, Sorghum Board $288,000.

I think it’s time to completely re-evaluate the responsibilities of our state government and to allocate the money to the areas most needed. And I haven’t even mentioned the 800 pound gorilla in the room. That’s the Health and Human Services Department. Hold on to your wallet for this one … $2,913,571,623! That’s nearly three BILLION. They spend $4 million in postage alone, another $33 million in data processing, $4 million in printing, another $4 million in travel, and the big one, over $2 BILLION to individuals. Maybe, just maybe, we ought to look to ourselves a bit more to provide life’s necessities, and let the state go about doing what was intended.

According to Nebraska’s budget, we will appropriate $8.4 BILLION for 2010-11. Make no doubt about it. There is plenty of money in the state’s budget to fund the roads. We sure don’t need to add another 10 cents per gallon gas tax. That’s nickel and dimeing us to death!


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