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Walker Criticizes Assembly GOP Road Plan

Governor Attacks Provision That Would Raise Sales Tax On Gas

Gas pump
Jessica Hill/AP Photo

Gov. Scott Walker and Assembly Republicans remain at odds over transportation funding after Walker criticized their plan to increase taxes on gasoline to pay for roads.

“Call it what you will,” Walker said of the GOP plan at an event Monday in Milwaukee. “If you’re paying more on the gas that you pay at the pump, that is a gas tax increase.”

The plan by Rep. Dale Kooyenga, R-Brookfield, would cut the state’s dedicated fuel tax, but it would more than make up for that cut by applying the state’s sales tax to gasoline. The Legislature’s nonpartisan budget office said the overall effect would be about a 7-cents-per-gallon increase on the average gallon of gas.

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Overall, Walker said the plan would increase taxes by more than $430 million in the next two-year budget. His office said that number includes higher local sales taxes that would result from the proposal.

“And yet there are no new projects identified — road projects,” Walker said. “I think a lot of people sort of scratched their head and said, ‘I thought the whole debate was about having to have more road projects.’”

Part of the reason the GOP plan included no new road projects is that it would use most of the new revenue generated from the tax to reduce borrowing for roads. Assembly Republicans said they also wanted to avoid starting new fights about which projects should move forward.

Kooyenga argued another provision he proposed to scale back Wisconsin’s minimum markup law would offset higher gas taxes, although Walker said there was no way to guarantee that.

“Nothing in the law change that they’re talking about … requires a reduction in the cost of gasoline,” Walker said.

People stopping at gas stations Monday in Superior shared their thoughts about possibly paying more at the pump under the proposal.

Susan Bombich, of Superior, said she would support higher taxes on gas if the money would be used to repair roads.

“If that’s the purpose for it and the intent, then I would agree,” she said. “Our road infrastructure is in need of repair, and I hope a lot of it comes to northern Wisconsin.”

Superior’s Arthur Gil De Lamadrid said his support would also depend on how the money would be spent.

“I guess I would be in favor of an increase if that would mean better roads and highways,” he said.

Barry Bohlman, of Chippewa Falls, said increased taxes on gas would amount to a user fee.

“You got to pay for roads somehow,” Bohlman said.

Superior’s Shawn Frost said he doesn’t want to pay more at the pump.

“At the same time, it’s a need, so I guess there’s good and bad that comes with it. You kind of just have to take it for what it is,” Frost said.

Frost added Walker’s proposal to borrow for road repairs without increasing the tax would just leave debt for future generations. Others say they haven’t heard of either road plan and don’t care.

Editor’s Note: WPR’s Chuck Quirmbach contributed to this report.