Road plan a good start

We don’t as a rule subscribe to the notion that a nation or a state can tax itself out of recession and into prosperity.

But we think Oregon Gov. Ted Kulongoski is onto something with the tax-hike proposal he unveiled last week.

We endorse much of Kulongoski’s plan because he wants to use the extra money for a specific, and necessary, purpose: Replacing dilapidated bridges and repairing rough highways.

And unlike many tax-raising schemes that politicians devise, Kulongoski’s concept would benefit private businesses far more than it would enrich state bureaucracies.

The governor told legislators last week that his plan would put almost $500 million per year into the state’s coffers, and result in about 2,100 new jobs per year over the next five years.

Most of those jobs would be in the construction sector.

The tax and fee increases Kulongoski proposes are modest.

The centerpiece of the governor’s plan — and likely its most controversial aspect — is a 2-cents-per-gallon boost in the state gas tax, from 24 cents to 26 cents.

Gas taxes are always controversial, and although prices have plummeted recently, Oregonians well remember mid summer when they had to shell out $4.25 or more per gallon.

But here’s a bit of perspective:

If you drive 12,000 miles per year in a car that gets 20 miles per gallon, Kulongoski’s proposed tax increase would cost you all of 12 bucks a year.

For most Oregonians the more costly part of the governor’s package — and the one area in which legislators ought to consider doing some trimming — is the boost in car title and registration fees.

The registration fee, for instance, would triple from $27 per vehicle per year to $81.

That’s another $54. That’s not too punitive a penalty — unless you own four or five cars, which gets into some real money for most people.

We recommend Kulongoski propose doubling, rather than tripling, registration fees.

The bottom line is that Eastern Oregonians and other rural residents who have to drive farther, and businesses that need to haul their products, will pay the most for this plan.

But although Kulongoski’s plan will hit us hardest, we still want to see the details of his proposal because we like the basic concept — in particular its statewide reach.

The plan, without the reduction in registration fees we suggest, includes $249.5 million per year for state highways, $149.7 million for county roads and $100 million for city streets.

Baker County’s estimated share would total $788,000 per year, and Baker City’s $352,000. Those would be significant influxes for the two entities, neither of which is flush with cash for road and street work.

Baker City officials, for instance, estimate that the city would need to spend approximately double its yearly street maintenance budget of about $400,000 just to keep pace with deterioration.

And that bill will continue to rise, so it makes financial sense, and is to the benefit of the taxpayers who rely on roads and bridges every day, to do the work as soon as possible.

Kulongoski’s plan is a good start, and we encourage the Legislature, which convenes in January, to bring the governor’s ideas to fruition.