DES MOINES, IOWA (AP) -- Iowa lawmakers have rejected a plan that called for a 4-cents-per-gallon increase in the gasoline tax to raise funds for road improvements.
A bipartisan legislative panel met Wednesday, declining to endorse any revenue increase for highway projects. But they indicated they would continue discussing the issue when the Legislature convenes.
An Iowa Department of Transportation study showed that Iowa faces a shortfall of at least $200 million annually to pay for city, county and state road and bridge projects.
State Senator Tom Rielly, a Democrat from Oskaloosa, says the panel dismissed the gas tax increase idea because Governor Chet Culver says he wouldn't support it.
But some lawmakers say it will be difficult to push for tax or fee hikes in the coming session, with so many legislators facing reelection in the fall.
DOT officials say if lawmakers can't come up with a plan next year, the state will have to delay several repair and improvement projects.
House Minority Leader Chris Rants, a Republican from Sioux City, says the panel failed to show leadership with its inability to come up with a solution.
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