archived: 1 - 7 Jan, 2006         Back                 Next

                      OPPORTUNITY KNOCKING? 

Democrats may have another opportunity to pick up a State Senate Seat in Forsyth County.  The Winston-Salem Journal is reporting:  

State Sen. Ham Horton - a hold-over from an earlier age and one of the last true characters in the General Assembly - announced yesterday that because of an ongoing battle with cancer, he will not run for re-election next year to a ninth term in the Senate. . . .
He was elected to the Senate from Forsyth County again in the Republican wave of 1994, and he has been there ever since. 

TPJ is adding Sen. Horton’s seat to the targeted District list in TPJ’s WINNING THE STATE SENATE in the Tar Heel Dem Cellar, below.

                        REPUBLICAN GAS 

Republicans have been calling for a special session of the North Carolina General Assembly to roll back automatic increase in the gasoline tax of 2.8 cents that is coming into effect.  North Carolina gas tax is a formula, adjusted quarterly, based on 17.5 cents + 7% of wholesale price of gasoline.  As the price of gasoline has risen by some 40% during 2005, the gasoline tax rises quarterly. 

For tax cutting Republicans, the issue seems perfect.   In an election year and with many North Carolinians struggling to make ends meet, they can focus on “unburdening” North Carolinians of another tax.   For some progressive Democrats concerned about the effect of the tax on lower income North Carolinians, the need to freeze the gas tax seems compelling. 

Lost in all of the initial political hype are some important facts: 

While North Carolina’s gasoline tax is in the sixth highest nationally, North Carolina has more miles of road infrastructure than all other states except Texas. 

 

North Carolina’s population is growing.  North Carolina's population increased by more than 142,000 people last year, tying it with Texas and Georgia as the fifth fastest-growing state in the country.  -- U.S. Census Bureau.  As growth continues, where will the increasing need for money come from to build new roads?

 

As North Carolina’s roads “age,” there already exist needs for road improvement and repair.  Coupled with the need for new roads, there is a “gap” between revenue and the cost of basic road needs.  Where will North Carolina find the money necessary? 

The Democratic Party leadership in the General Assembly has responded to the Republican cut tax mantra by launching a joint House and Senate committee to study the problem.  The Join Committee will initiate meetings this Thursday.  The Joint Committee membership: 

Sen. Clark Jenkins, D-Edgecombe (Co-Chair)      Rep. Nelson Cole, D-Rockingham (Co-Chair)
Sen. Charles Albertson, D-Duplin                       Rep. Drew Saunders, D-Mecklenburg(Co-Chair)
Sen. Doug Berger, D-Franklin                             Rep. Lucy Allen, D-Franklin
Sen. Phil Berger, R-Rockingham                         Rep. Becky Carney, D-Mecklenburg
Sen. Stan Bingham, R-Davidson                         Rep. Lorene Coates, D-Rowan
Sen. Julia Boseman, D-New Hanover      
Sen. Dan Clodfelter, D-Mecklenburg                   Rep. Jim Crawford, D-Granville
Sen. Charlie Dannelly, D-Mecklenburg                Rep. Margaret Dickson, D-Cumberland
Sen. Linda Garrou, D-Forsyth                             Rep. Beverly Earle, D-Mecklenburg
Sen. Malcolm Graham, D-Mecklenburg               Rep. Rick Eddins, R-Wakei
Sen. Kay Hagan, D-Guilford                               Rep. Bruce Goforth, D-Buncombe
Sen. Fletcher Hartsell, R-Cabarrus                     Rep. Robert Grady, R-Onlsow
Sen. David Hoyle, D-Gaston                               Rep. Earl Jones, D-Guilford
Sen. John Kerr, D-Wayne                                  Rep. Danny McComas, D-New Hanover
Sen. Vernon Malone, D-Wake                            Rep. Marian McLawhorn, D-Pitt
Sen. Tony Rand, D-Cumberland                          Rep. Karen Ray, R-Iredell
Sen. Larry Shaw, D-Cumberland                         Rep. Wilma Sherrill, R-Buncombe
Sen. Fred Smith, R-Johnson                               Rep. Fred Steen, R-Rowan
Sen. John Snow, D-Cherokee.                            Rep. Roger West, R-Cherokee
Sen. R.C. Soles, D-Columbus                            Rep. Thomas Wright, D-New Hanover 

Democrats should usurp the issue Republicans believe they have.  If North Carolina’s revenue needs for roads are not met, it will cost North Carolina economic development and jobs.  Simply stated, Democrats One major study found: 

The cost to bring the [road] system up to prudent status, and fund major widening and planned new roads is about $27.8 billion. Under current funding policies, about $24.1 billion is likely to be available for pavement repair, major widening, and new construction over the next 8 years. Thus, the gap between needs and likely disbursements is about $3.75 billion over 8 years. If highway spending were increased by this amount, the economic impact to North Carolina would be about $747 million annually, or about 7629 jobs. – John Locke Foundation   

Democrats should make the case that cutting the gas tax is irresponsible from this perspective.  Additionally, even the conservative John Locke Foundation recognized the need for increasing funding for North Carolina’s roads: 

This analysis suggests that road funding should be increased, particularly in maintenance categories, if North Carolina is to improve its road system compared to other states. . . .  One alternative, obviously, is to increase road user taxes, particularly gasoline and diesel taxes. However, North Carolina’s state fuel taxes – 22.3 cents/gallon for both gasoline and diesel fuel - are already quite high relative to other states , and further increases might jeopardize the state’s economic growth. However, in the last 2 years about 6 states have raised taxes to meet the funding needs . . . .  Also, some states have a differential tax, that is diesel fuel is taxed at a higher rate than gasoline. If a tax increase is contemplated this option should be explored.           

Finally, Democrats should note who gave North Carolina its current automatic gas tax structure – Republican Harold Brubaker negotiated the North Carolina tax formula in 1994.

TAR HEEL DEM CELLAR