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R.I. Senate, House working on proposal to finance statewide transportation repairs

 As the state Senate Wednesday postponed action on a bill that would remove tolls from the Sakonnet River Bridge and would use millions of dollars from various sources to create a fund for statewide transportation repairs, the key sponsor on the House side said there is momentum to make the proposal an article of the state budget.

A spokesman said the Senate vote was moved to next Wednesday to work on language among the two chambers and governor’s office, as was the case when it was postponed a week earlier.

Rep. John Edwards, D-Tiverton, prime sponsor of the House bill, said that with a transportation fund that would allocate hundreds of millions of dollars over many years, he expects it should become a budget article.

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So it may be too early to say what a final proposal will look like.

The bill sponsored by Sen. Louis P. DiPalma, D-Middletown, would end tolls effective July 1 and establish the state transportation infrastructure fund. DiPalma said Wednesday that under the bill, a total of $800 million from a range of funding sources would go to the transportation fund over a 10-year period.

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DiPalma said the Senate bill includes, among those sources:

Beginning in fiscal 2016 and continuing for five years, 0.25-percent of the state’s estimated general revenues would go into the transportation fund, increasing each year until the total reaches 1.5 percent of the state’s general revenue.

Starting in fiscal 2019, $45 million of the Department of Transportation’s motor-fuel tax allocation would be put into the transportation fund. DiPalma said the DOT had previously used motor-fuel tax allocation for debt service but that the state in recent years assumed the debt service, so this would free up more funds for DOT to work on roads and bridges.

Use 0.1 percent of general revenue from Rhode Island Capital Expenditure Program, increasing yearly by 0.1 percent until the amount is 0.5 percent, where it would remain.

Allow for annual appropriations from the state’s general fund to the new transportation fund to address revenue shortfalls from reduction of elimination of tolls.

The bill would have a fiscal impact because it would involve taking money out of the budget, DiPalma said.

“Our desire is to have one bill that both the House and Senate concur on as opposed to having to go back and forth,” DiPalma said. “We will certainly get there,” and he added, “It’s been a close collaboration by all involved” in both chambers.

DiPalma said increased focus on improving transportation would create jobs for the work and that better transportation would help attract businesses to the state.

The bill would prohibit tolls on all but the Pell Bridge, between Jamestown and Newport.

Toll rate increases expected to begin May 16 were put off until June 12 by the Rhode Island Turnpike and Bridge Authority to allow lawmakers time to work on the proposal.

http://www.providencejournal.com/breaking-news/content/20140514-r.i.-senate-house-working-on-proposa...

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