O'Malley Pledges Roads Funding
Governor Cites Backlog Of Jobs, Bridge Collapse

By John Wagner
Washington Post Staff Writer
Sunday, August 19, 2007; C01

OCEAN CITY, Aug. 18 -- Gov. Martin O'Malley (D) on Saturday pledged to offer a "major transportation funding bill" when the legislature reconvenes, cautioning that a bridge collapse like the one in Minneapolis could happen one day in Maryland if the state does not confront a growing backlog of projects.

"We will not be the generation that allowed its infrastructure to become weak because our political will was not strong," O'Malley told a gathering of county officials. "Our roads and bridges will not wait until the right political timing, the ideal gas price or the best fiscal environment. We need action, and we need it now."

O'Malley has previously floated the idea of raising the gas tax or other levies to pay for transportation projects, but Saturday's address was the most definitive declaration of his intention to move forward. He offered no details, however, and left the gathering of the Maryland Association of Counties without taking questions from reporters. An aide said details would be released in coming months.

State transportation officials have advised O'Malley that an additional $400 million to $600 million a year in revenue will be needed to keep pace with the state's needs during the next two decades, including a proposed light-rail Metro line connecting Bethesda and New Carrollton and light-rail or bus service along part of the Interstate 270 corridor.

Maryland pays for its transportation projects out of an account that is separate from its general fund, which is facing a shortfall of nearly $1.5 billion next year. Lawmakers are talking about raising other taxes, including sales and income taxes, to help close that gap.

O'Malley acknowledged that state leaders face some unpopular choices in the coming year, including spending cuts, but said: "Our goal is not passing a popularity contest. Our goal is a stronger Maryland for the working people of Maryland."

The governor also restated his goal to protect county governments during state budget deliberations. State aid to localities for education and other programs has swelled in recent years and now accounts for about 40 percent of the state budget, making it an inviting target for lawmakers as they balance the budget.

"We're not going to solve the problem simply by passing it on to county governments to solve themselves," O'Malley said.

His remarks appeared well-received by county officials but were sharply criticized by a Republican leader attending the session.

Senate Minority Whip Allan H. Kittleman (R-Howard) accused O'Malley of misleading county leaders about their prospects in the budget process.

"I think they deserve the governor being straight with them," Kittleman said. "I think he's giving the counties false hope."

Kittleman also questioned raising revenue for transportation projects at the same time that other taxes appear likely to be raised.

Maryland is spending about $1.8 billion this year on transportation projects, but funding for new projects is expected to fall sharply in coming years as maintenance costs increase.

In his speech, O'Malley did not offer specific proposals to raise additional revenue for the transportation trust fund. Increasing the state's gas tax, which is now 23.5 cents a gallon, is among the options widely acknowledged by aides to the governor.

Maryland's gas tax falls in the middle of the range of levies in the region. Virginia's tax is 17.5 cents a gallon, and Pennsylvania imposes a tax of 31.2 cents a gallon, according to legislative analysts.

Maryland transportation officials are pushing, at a minimum, to start raising the tax on a periodic basis to reflect rising construction costs.

A bill introduced by Senate President Thomas V. Mike Miller Jr. (D-Calvert) during the past legislative session would have yielded about $400 million a year by raising the gas tax by 12 cents a gallon, according to legislative analysts. O'Malley did not take a position on that bill, which Miller said he filed only for discussion purposes.

In May, O'Malley also floated the idea of directing a greater portion of the state's corporate income-tax collections to transportation projects. Other ideas suggested by lawmakers have included raising the tax on vehicle titles.

In his speech, O'Malley criticized President Bush for opposing an increase in gas taxes and supporting a cut in corporate taxes after the collapse of the Interstate 35W bridge in Minneapolis. By doing so, O'Malley said, Bush was "leading us backwards, not forward."

O'Malley said he was certain many in the audience wondered after the collapse if something similar could happen in Maryland. "It can happen here," he said, pausing for effect. State transportation officials have said in recent weeks that they are confident about the reliability of state bridges.

Montgomery County Executive Isiah Leggett (D), who called for an increase in the state gas tax during last year's campaign, credited O'Malley with offering "a realistic, sobering message" about the status of Maryland's transportation fund. "I'm proud that he said that," said Leggett, who was in the audience.

House Speaker Michael E. Busch (D-Anne Arundel), who also attended, said he believes that lawmakers should address transportation needs at the same time they balance the general fund budget.

"I believe once you get in there to deal with it, you deal with it all at one time," Busch said.

Busch said he has concerns about the impact of raising the gas tax on working-class families but said he is willing to discuss specific proposals.

The state legislature is scheduled to reconvene in January, although there has been talk of a special session before then to address the budget.