Iowa Governor Culver Signs Bill Aimed At Securing Iowa's Transportation Future

April 22, 2008 -- DES MOINES – Today, Iowa Governor Chet Culver signed Senate File 2420, which will secure new funding for Iowa ’s transportation system.

“As Governor, one of my top priorities has been to build on Iowa ’s strengths in education, manufacturing and agriculture and financial services to create jobs in every corner of the state,” said Governor Culver.

Iowa highway: Photo by VideoVik (CC)

“The good news is the jobs are coming, but we must have the infrastructure in place to keep pace and grow our economy. Today, we’re taking another essential step toward doing just that.”

Senate File 2420 was based on the recommendations of the Transportation Moves the Economy in the 21st Century (TIME-21) Commission, which were presented last year. The commission was created following a Department of Transportation study that showed Iowa would be $28 billion short of the projected $67 billion needed to modernize Iowa ’s transportation infrastructure.

The new legislation increases registration and title fees on vehicles beginning on January 1, 2009. However, the fee increase will not affect current pick-up truck owners in Iowa .

SF 2420 is projected to raise more than $160 million a year by 2013. Collected fees will be deposited in the TIME-21 Fund, which was created last year. 60% of these dollars will be used to fund primary roads, with another 20% used for secondary roads, and the final 20% to be used by city governments to fund road projects on the local level.

IMPORTANT FACTS RELATED TO TIME-21 LEGISLATION

* FACT: Establishes a dedicated funding mechanism for the TIME-21 fund, with 60% of revenue distributed to primary roads, 20% for secondary roads, and 20% for local governments.

* FACT: Constitutionally protects registration fees for Iowans, ensuring these dollars will be used to fund the construction, maintenance, and supervision of public roads and highways.

* FACT: Current pick-up truck owners will not be affected by the legislation and their fees will remain at the current level.

* FACT: Will not raise Iowa ’s Gas Tax .

* FACT: Is projected to raise more than $160 million a year by Fiscal Year 2013 for Iowa ’s roads and transportation infrastructure.

Source: Iowa Governor

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