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Business lobbyist pushes for gas tax Medford seeks I-5 interchange work By PETER WONG SALEM -- John Watt says Medford businesses want increased gasoline taxes and a more efficient state agency to spend them on highway repairs and construction. Watt, a former state representative who now is a lobbyist for Jackson County government and 10 businesses, spoke Friday at a hearing of the House Transportation Committee. "We are a growing community, and it's extremely important that the projects we have slated for completion in Southern Oregon be completed," Watt said. "That is not likely to happen without some kind of revenue enhancement. The committee is considering House Bill 2082, which was requested by Associated Oregon Industries, the state's largest business-lobbying organization. It proposes a 6-cent increase in the gasoline tax, now 24 cents per gallon, and a $10 increase in the two-year vehicle registration fee of $30. State law specifies that both sources can be spent only on road projects. The 6-cent increase would come in two stages. Republican legislative leaders, led by Senate President Brady Adams of Grants Pass, have proposed a gasoline tax increase of 4 cents to last only two years. Watt said afterward his clients have not taken a position on which amount they prefer, though he speculated that many would favor the higher amount. Experts have said that for all transportation needs to be fulfilled, the increase would have to be 27 cents, which Watt said is not going to happen. The 10 Medford businesses Watt represents are part of the Oregon Alliance of Highway Users. Among them are Asante Health Systems, parent of Rogue Valley Medical Center, Southern Oregon's largest full-time employer; Burrill Resources, De Carlow Homes, LTM Inc., Mahar Homes, Naumes Inc., Rogue Valley Manor, and TRF Real Estate Corp., which markets property in Medford's South Gateway. All support planned improvements in the north and south Medford interchanges with Interstate 5, which is a state responsibility. Earlier last week, Gov. John Kitzhaber said he favors the business lobby's original proposal although he would sign the lesser amount into law. "I believe any disagreement we may have is about over how we will meet these needs, not whether to meet them," the Democratic chief executive told the committee. "But I think it's misleading voters to some extent to pass a gas tax increase and leave the impression that somehow we are making a significant impact on the modernization needs of this state. "I think they will have expectations that will not be fulfilled." Kitzhaber said the state should retain a formula of 50 percent of the new money going to state highway projects, 30 percent to counties and 20 percent to cities. The Republican legislative leadership proposes to give a smaller share to the state, but Kitzhaber said that amount ($26 million) would yield little for any state modernization projects. Kitzhaber also said that any increase should be permanent, not temporary as the Republican leaders propose, so that local governments can count on it for planning purposes. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA