YOUR BUSINESS AUTHORITY
Springfield, MO
When does economic development impact the ordinary citizen? There are several answers to this question, but one key answer is a quality transportation system.
Without a sound transportation system, goods and services are not delivered efficiently, more time is spent in traffic delays and drivers face higher safety risks. But more importantly than knowing the answer is knowing what we are prepared to do about it.
Over the past year many have heard and read about our state's transportation system and needs. Missouri ranks 43rd among states in revenue per mile and has the seventh largest highway and bridge system. In 2000, more than 1,100 people were killed and more than 76,000 injured in traffic crashes in Missouri. This past legislative session, our elected officials addressed this critical issue. Thanks to their commitment, a $483 million tax proposal will be put to the voters Aug. 6.
Proposition B would increase Missouri's general sales tax by one-half of 1 percent and the state's motor vehicle fuel tax by 4 cents per gallon. This tax proposal would generate an estimated $483 million per year for transportation improvements. This proposal would also increase payments to cities and counties for local road and bridge improvements by more than $50 million per year.
The Missouri Department of Trans-portation has completed a detailed financial analysis of Proposition B and released a list of major projects to be addressed over the next 10 years with the added revenue.
Among other elements, the plans are to replace more than 700 bridges, resurface 14,000 miles of highways and raise the percentage of Missouri highway pavement in good condition from the current 35 percent level to 57 percent.
This sales tax increase will cost a typical four-person Missouri family about $7.40 a month or $89 a year, and the fuel tax would cost an average Missouri driver around $30 a year, according to figures from the Department of Transportation.
Many would say that when the added safety and convenience are factored in, the improvements more than outweigh these costs. Also, Missouri ranks 43rd in the nation in state taxes paid as a percentage of personal income. Missouri state sales tax is also the lowest among its eight neighboring states, and our fuel tax is third lowest.
The best part of this tax is the fact that it will expire in 10 years. After 10 years, voters will be asked whether this tax accomplished what was intended. If voters are pleased with the results, they can renew the tax and continue to improve our state's transportation needs.
The Springfield Area Chamber of Commerce is taking a lead role in our region to educate voters on this issue. The Ozarks Regional Economic Partnership, a regional economic development program comprised of 60 cities, counties and chambers of commerce, also will play an active role by educating local community and business leaders about the facts related to this issue and its long-term impact on our region.
Studies show that investing in transportation infrastructure pays big dividends.
For example, $500 million spent on transportation construction generates more than $1 billion in economic activity and creates between 17,000 and 21,000 jobs, according to the Department of Transportation.
Throughout the state and each community, economic growth is dependent upon a good transportation system. Our central location is a natural advantage in attracting business and industry. But if businesses cannot rely on a quality transportation system, we will lose a competitive advantage.
Please take the time to educate yourself regarding the facts involved with this tax proposal and the impact it will have on your future. Also, be sure you are registered to vote. See you Aug. 6 at the polls.
(Allen Kunkel is the manager of regional development for the Springfield Area Chamber of Commerce.)
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