DES MOINES, Iowa -- Iowa lawmakers have rejected a plan that called for a four-cents-per-gallon increase in the gasoline tax to raise funds for road improvements, said the Associated Press.
A bipartisan legislative panel met Wednesday, declining to endorse any revenue increase for highway projects. But the panel indicated it would continue discussing the issue when the legislature convenes.
An Iowa Department of Transportation study showed that Iowa faces a shortfall of at least $200 million annually to pay for city, county and [image-nocss] state road and bridge projects.
State Senator Tom Rielly (D) said the panel dismissed the gasoline tax increase idea because Governor Chet Culver said he would not support it.
But some lawmakers said it will be difficult to push for tax or fee hikes in the coming session, with so many legislators facing re-election in the fall.
Transportation Department officials said if lawmakers can't come up with a plan next year, the state will have to delay several repair and improvement projects.
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