Penny for your roads? Tax could pave road projects' way

Claire Taylor
10-22-06

Should shoppers pay an additional one penny for every $1 purchase to build new roads? That's the question some Lafayette Parish voters will be asked to decide on Nov. 7.

In just over two weeks, voters in the city of Lafayette, unincorporated parts of Lafayette Parish and Carencro and Duson will decide whether to collect in their respective areas a new 1-cent sales tax.
Sixty-two road and drainage projects are listed in an August feasibility report as projects that may be built if the 1-cent tax is approved in the city of Lafayette. Fourteen projects in unincorporated Lafayette Parish may be built with a one-cent parish tax.

Worst-case scenario

If the tax is rejected, Lafayette Consolidated Government will have only $8.2 million for road construction in 2007, East Pont des Mouton Road, said Pat Logan, associate public works director. "That's it for 2007," Logan said.

If the tax is approved Nov. 7, one of the first projects ready for construction is Louisiana Avenue from Maryview Farm Road to Gloria Switch Road, a $12 million project, he said.
Another is the extension of Luke Street from the South Louisiana Community College to Dulles. A $2.2 million Streetscape downtown beautification project on Jefferson Street from Lee to Johnston street and on Lafayette Street in front of the federal courthouse also could be bid in early 2007 if the tax is approved, Logan said. "I really believe that within a year of passage we would have $30 to $50 million (in projects) under construction, he said.

Taxes stretched too thin

Shoppers currently pay eight cents in sales taxes in Lafayette. Two one-cent sales taxes are used for roads, drainage and recreation in Lafayette. Those taxes were approved by voters in 1961 and 1985.

In 1997, voters authorized a massive road construction program in which bonds were issued and repaid with those two pennies of tax. In July, voters authorized the city to issue $125 million over the next 10 years guaranteed with that same two cents. The taxes are spread too thin, with much of it being used to pay off existing debt on the older bonds.

City-Parish officials say existing taxes do not generate enough money to build the roads needed to keep pace with growth in Lafayette Parish.

Many of the projects identified for construction if the tax passes are state highways. But the state's revenues are falling far short of what is needed to maintain roads and build new ones across Louisiana.

Statewide $12 billion worth of road projects are identified and unfunded, said Bill Fontenot, district administrator, Louisiana Department of Transportation and Development.

After 2010, the state will only be able to spend money maintaining existing state roads, not building new ones, Fontenot said. Kaliste Saloom Road is not in the program before 2010.

Only three projects in Lafayette Parish are guaranteed funding from the Louisiana Department of Transportation and Development in the near future: Verot School Road widening, Ambassador Caffery Parkway south and South College extension and bridge, Fontenot said.

The last state tax for roads was approved in 1989. The state collects 16 pennies of tax on every gallon of gasoline Louisiana motorists pump. But it is insufficient to keep pace with inflation, rising costs of construction and growing needs, Fontenot said.

"Government and the people have to decide how to fund these costs of infrastructure construction," Fontenot said. "Basically, that's what Lafayette is doing on their own. They're dealing with the true issue, that state funding constraints are not going to allow the state to be here anytime soon with any of these improvements."

Durel: Tax restrictive

City-Parish President Joey Durel spent more than six months talking with business and civic leaders, asking everyone for ideas on how to fund road construction. The outcome of all that brainstorming is the one-cent sales tax on the Nov. 7 ballot.

The first-time elected official is frustrated at the lack of trust in government, but admits he was mistrustful before he was elected.

The proposed sales tax is the most dedicated, restrictive tax Lafayette voters have ever faced, he said Friday. The wording of the proposition legally restricts its use to roads, traffic and drainage. At least 80 percent of the money must be used for construction. The other 20 percent is for maintenance.

In the past, tax propositions simply said the money would be used for capital improvements, a broad term that allowed government more flexibility in spending the revenue, Durel said.

The new one-penny tax would not be collected on food and medicine, and 30 to 37 percent of Lafayette's sales taxes are paid by shoppers who live outside the parish, Durel said.

Without the new tax, local government is not going to come to a standstill, although traffic might, he said.

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Road projects

Among the road projects all or partially in the city of Lafayette:
  • Ambassador Caffery Parkway North match.
    • * Bellfontaine Drive extension.
  • Carmel Avenue widening.
  • Duhon Road/Robley Drive extension.
  • Duhon Road widening.
  • Doucet Road improvements.
  • Dulles Drive widening.
  • East Verot School Road widening.
  • East Willow Street extension.
  • E. Broussard Road and bridge.
  • Eraste Landry Road, Phase IIB.
  • Geometric intersection improvements.
  • Interstate 49 local commitment.
  • Interstate 10 frontage roads.
  • Johnston/Ambassador intersection improvements.
  • Johnston/E. Broussard intersection improvements.
  • Kaliste Saloom Road widening.
  • Louisiana Avenue extension.
  • North St. Antoine extension.
  • North University widening.
  • Simcoe Street corridor improvements.
  • Road projects in unincorporated Lafayette Parish:

  • * Ambassador Caffery Parkway North match, $500,000.
  • Carmel Avenue widening, $6 million.
  • E. Broussard Road (La. 733) widening and bridge, $800,000.
  • Johnston Street/ E. Broussard intersection, $500,000.
  • Lebesque Road widening, $4 million.
  • Louisiana Avenue extension Phase III (Gloria Switch to Hector Connoly), $4 million.
  • North University widening, $5 million.
  • Rue du Belier extension, $4 million.
  • West Congress extension, $4.5 million.
  • Verot School Road widening (Vincent to La. 92), $7 million.
  • Youngsville Highway (La. 89), $5 million.

  •  TOTAL: $48.5 million     

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