Highway Trust Fund Transfers

There's a pretty interesting discussion at the BlueNC blog about the controversy surrounding the question of transferring revenue from the Highway Trust Fund to the General Fund for non highway related appropriations. Now I don't usually refer readers to BlueNC unless you're looking for a frequently irrational ideological rant against all things even remotely related to Republicans. (Parental Discretion is advised since some of the content is not appropriate for sensitive youngsters!) But I will admit to having struck up a reasonably civil communication line with the blog's chief blogger Anglico a/k/a James Protzman and the liberal perspective is often interesting to read.

Anyway, the charges from this one particular blogger is that none of the GOP contenders (nor does democrat Beverly Perdue) understand why it's ok to continue syphoning money from the the HTF. The rationale is that when the Fund was started there was a 2% sales tax on vehicles that went into the General Fund. A then new 3% sales tax on vehicles was enacted with the proceeds going into the HTF. Thus the money taken out of the HTF was simply to replace the original funds from the 2% tax and put it into the General Fund. Following this OK?

The blogger and Democratic candidate for Governor Richard Moore say before eliminating what's now a $252 million withdrawal, a candidate better explain where the money will come from to replace it in the General Fund. The fallacy of this reasoning is that with the sustained growth of revenues over all these years that original 2% figure has long been replaced. In fact the final budget this session was for approximately $300 million more than anybody including the legislative leadership and the Governor had actually requested. So the "how can we replace that money?" argument simply won't fly.

The bottom line is that whether the tax comes from the sale or transfer of vehicles or the consumption of gasoline, the purpose for taxing these items is so that there is sufficient revenue to build new roads where needed and maintain and improve existing roads. There is no doubt that this administration has failed miserably in handling the Department of Transportation responsibilities in an efficient and fiscally responsible way. That's not just my opinion but the opinion of editorial writers, business leaders and others with no political axe to grind. The money needs to go to transportation needs not diverted for more special interest and pork barrel spending by the leadership of the General Assembly.

(I posted in my very first blog entry that I have not set this site up to allow for posted comments. However, readers can comment directly to me via email at blog@orr2008.com)