Harsh economic times add weight to Proposition B issues

Additional costs to drivers will result in higher costs for everybody

John D. Hancock is a member of Prime Inc.'s management team. Prime is a locally owned trucking firm.

Drive a few hours on the roads in Missouri and you will know the highways are in need. As a transportation company, safety is one of our biggest concerns. We spend several million dollars each year for education, training and safety bonuses.

The questions on the highways are: Why are they in the condition they are in and how can a fix be accomplished?

Proposition B asks us to add another tax on a struggling transportation industry. Before we ask for more, we must insist the current funds being spent wisely and without waste. When is enough, enough?

After reading the columns by Jim Kreider (Speaker of the Missouri House of Representatives) and Brad Roark (State Representative for the 139th District) in the July 8-14 Business Journal, I am confused about what is the best answer. Does an extra $483 million (on top of MODOT's $1.8 billion budget) make the problem go away? Probably not. The projected money that Prop B brings in is equal to what is being spent as administrative costs, that's a lot of money.

Trucking delivers

Seventy percent of all communities in the United States depend solely on trucking for delivery of goods and commodities. Trucks pay 37 percent of all highway-user taxes, despite representing only 10 percent of the registered vehicles.

According to 1996 research in Missouri, 1 out of 11 people working are in the transportation industry. Eighty percent of the trucking companies in the nation have 20 or fewer trucks.

The trucking industry has suffered in this economy. In 2001, 3,990 trucking companies went out of business, and that only counts those with more than 10 trucks in their fleets. That is more than 75 per week and does not count the numerous failures of smaller operations. What will 2003 look like?

Paying our part

The majority of those pulling freight at our company are independent contractors in business for themselves, which means they pay out of their pocket the costs to operate their trucking business. Prime tracks, files and settles on the behalf of its operators the costs of license, permits, federal and state highway tax (fuel tax), state highway usage fees, etc.

In 2001, our drivers paid out more than $22.9 million (This does not include the 18.4 cents per gallon federal fuel tax that is in the price of unleaded gasoline and diesel fuel. If you count that, it adds another $13.4 million to the number). Of the $22.9 million, the big pieces were $1.5 million in federal highway usage tax (a flat $550 per truck each year) and $14.9 million in state fuel taxes and usage fees. To the Missouri Department of Revenue in 2001, Prime wrote checks totaling $4.29 million for licenses and permits, and $1.99 million in fuel taxes not collected at the pump. Some of those monies were then distributed to other states. In 2001, Prime's total fuel tax to Missouri was more than $825,000. That's a bunch!

Proposition B would increase the bill owed to Missouri by approximately $200,000. Trucks pay almost five times more per mile than cars do in fuel tax.

Weather and time are the biggest detriments to properly constructed roads, not cars and trucks. If proper maintenance is not done, this process is accelerated. Interestingly enough, in the East there are highways that do not allow trucks. They wear out in about the same time frame as roads with trucks.

When is enough, enough?

Trucking is certainly a hard business. People pick this business in spite of the fact that it requires them to be away from their families for long periods.

These are good, honest, hard working people that miss a lot of Little League games and family events, while earning a living and keeping the store shelves stocked and our nation's factories running. To pay any increased costs (i.e. fuel tax increase) customers will have to pay more to have their freight hauled, because truckers can't do it for less.

Vote "No" on Prop B.

I know what the impact would be on the independent contractors and the company. And our families depend on the success of both. This is a tax on those that can afford it least. A "Yes" vote is a vote to put people out of business and take away jobs. It imposes a silent tax on everything you do. It would inflate the cost of your entire life.

Considering the costs, Proposition B isn't the answer. Not convinced? Check it out for yourself. Find someone in the transportation industry. Find a guy who owns and runs a dump truck see what he has to say. Find one of my drivers. Your vote is your voice; make sure it speaks for the one it will impact the most, you.