A new television ad getting some airing recently has given rise to a misleading statement regarding the deficit and new funding generated by the 2008 Transportation Bill. To set the record straight you need not look very far for evidence to debunk this statement.
The issue: Does raising the gas tax affect the current billion-dollar budget deficit? Pat Kessler, a reporter from WCCO, investigated and found that to link the two is misleading. The current billion-dollar budget deficit is a separate budget from the gas tax hike, which, by law is designated to be used only for roads and bridges. The two have nothing to do with each other.
The State of Minnesota has not had a gas tax increase for 20 years and the current increase, including the anticipated increase by the year 2012, will bring our average to 28.5 cents, still below the “current” national average of 28.6 cents.
In addition, a commentary that appeared in the March 5th, 2008, Star Tribune by Steve Elkins, a City Council member in Bloomington and a participant in a number of transportation advocacy organizations, is another great review of the gas tax and worth the read.
If you like to track the national average price for gasoline and how it compares to Minnesota you can view the web site of The American Automobile Association .
I found an interesting web site that shows the history of the price of oil. This is a very interesting site particularly if you want to compare the rise of oil prices through history. It was interesting to note that oil was selling for $35 dollars/barrel in the year 1999 and now, after a mere seven years, the price has tripled.