Nebraska lawmakers are weighing a proposal to double the portion of state sales tax revenue allocated for highway construction, as the state’s 600-mile expressway system remains decades behind schedule. Senator Mike Moser of Columbus introduced Legislative Bill 479, which would increase the current allocation from one-quarter of a cent to one-half of a cent from Nebraska’s 5.5-cent sales tax. If passed, the bill would generate more than $80 million in additional road funding through the end of the state’s current budget cycle and over $125 million in each future two-year cycle until the law sunsets in 2042.
Nebraska’s expressway system, originally approved in 1988 with a 25-year completion goal, now faces delays stretching beyond 50 years due to rising costs. In December, Nebraska Department of Transportation Director Vicki Kramer reported that the projected cost of maintaining the state’s roads over the next two decades has climbed to $16.9 billion, up from $12.5 billion in 2018. This year, the department needs $844 million to maintain state highways but only has $700 million available.
During a public hearing before the Revenue Committee on Friday, Moser and several industry representatives, along with municipal and county government groups, urged lawmakers to support the bill, citing public safety concerns and the increasing cost of delaying infrastructure projects. However, opposition emerged from committee members, with Senator Kathleen Kauth of Omaha questioning whether all expressway routes require four-lane highways. Senator Mike Jacobson of North Platte voiced concerns about reallocating state funds without generating new revenue, stating, “The state is out of money.”
Moser acknowledged the state’s projected $267 million budget shortfall and considered other funding options, such as raising the gas tax, implementing tolls, or increasing fees on electric vehicles, but dismissed their viability. He argued that increasing the sales tax allocation is a necessary solution to address years of underfunded road projects.
The Department of Transportation did not provide testimony at the hearing but issued a statement expressing appreciation for legislative support. The committee took no action on the bill Friday, leaving the future of Nebraska’s long-delayed expressway system uncertain.
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