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A new proposal from Colorado Democratic Party leaders could add up to $3 per day to car rentals in Colorado. The surcharge is estimated to add up to $50 million annually to the state’s growing list of transit and bus projects.
The measure, SB24-184, is intended to provide “seed money” for passenger rail projects along and through the Front Range, a statewide bus network and other initiatives.
Democratic leaders said their goal is to use the money as a down payment and secure more federal funding from a recent bipartisan infrastructure plan.
“I think we all know that these are big visionary projects that are expensive and take a long time to get off the ground. With this once-in-a-lifetime opportunity, we actually have the real ability and short time frame to acquire the funding we need to make these projects a reality,” said Senate President Steve Fenberg.
Republicans criticized the bill as another effort to raise revenue without voter approval and dismissed transportation efforts as wasteful.
What does it cost?
The bipartisan Infrastructure Investment and Jobs Act launches $66 billion in federal rail funding, including about $30 billion to build new passenger rail corridors across the country.
Colorado is already working to set aside some of that money for major rail projects, but will need to come up with state funding to match some of the federal investment, Fenberg said in an interview. .
One key priority is the Front Range passenger rail plan, which would connect Fort Collins to Pueblo and potentially become a link in a national network. State officials said a “starter” version of the service, using existing cargo trucks, could cost $2 billion and at least a decade of work.
Fenberg is hopeful that the larger project could finally make some of the long-delayed promise of running a train from Denver to Boulder come true. The bill directs RTD and CDOT to work with the Front Range Passenger Rail District to provide that service, which would also be part of the northern section of the Front Range Line. But Fenberg said the “beginner” version of the plan would only run about five trains per day, compared to the dozens expected when he originally pitched voters on Boulder-bound trains. He pointed out that it was not running.
Hart Van Denberg/CPR News
A second, alternative rail plan would use existing Amtrak and freight lines as the basis for passenger rail service running from Denners Union Station to the northwest corner of the state. The proposed line would pass through Jefferson County, Winter Park, Steamboat Springs, and Craig, ending in Hayden.
“The Denver to Craig line requires minimal track and safety improvements, so CDOT expects the mountain rail project to be an attractive candidate for federal funding,” a CDOT press release states. “There is.” The state has already committed $5 million to studying the 191-mile route.
Fenberg said federal officials are “very excited” about Colorado’s rail plans.
“They’ve announced national interstate rail plans, and some of those plans hinge on the Front Range rail project, because it’s going to be an important connection for other states.” he said.
The bill also prioritizes Colorado’s efforts to build a “more comprehensive statewide bus system” through recently created routes such as Bustang, Snowstang and Pegasus.
Senate Minority Leader Paul Lundeen criticized the proposed transportation spending as potentially just a thug.
“California tried to kill two birds with one stone with a rail project that is now 10 years behind schedule and $100 billion over budget. Colorado shouldn’t fall down the same rabbit hole.” He mentioned a high-speed rail project in California.
Why fees are controversial
The proposal would continue Democrats’ use of fees, a controversial fiscal strategy to pay for infrastructure.
“Folks, there is no need to pay more,” Lundeen continued. “Coloradoans need relief from the fees and Democratic projects that are burdening their lives.”
By structuring the plan as a fee rather than a tax, lawmakers would not have to ask voters to approve new sources of revenue. The fee also does not count towards the state’s TABOR revenue limit.
The difference between taxes and fees is mostly a legal difference. Fees must be used for purposes related to the method in which they are collected. In this case, Democrats argue that there is a clear connection between the use of rental cars and the need for transportation investment.
As the bill declares, rental cars are “one of the users of the public road system and have been demonstrated to have an impact on traffic congestion on public roads, and to provide new transportation services that reduce traffic congestion and vehicle wear and tear.” “This could be mitigated or offset by providing machinery and rail services.” encounter. “
Colorado already charges $2.13 per day for short-term vehicle rentals, and that money goes to the state highway fund. I’ve been doing this since 2009.
The proposed new fees would be an additional cap of $3 per day for internal combustion engine vehicle rentals and $2 per day for electric vehicles and plug-in hybrids. CDOT will handle the money. Rentals longer than 30 days will continue to be waived.
The bill is sponsored by Fenberg, Sen. Janice Marchman, House Speaker Julie McCluskey and Rep. Andrew Boesenecker, all Democrats.
Gov. Jared Polis has already expressed strong support for the bill, saying public transit would lead to more housing and lower costs for Coloradans.
“Historic federal funding is now being allocated to build passenger rail across the country, and this bill is an important step in helping Colorado defund its fair share and ultimately make passenger rail a reality.” This is a step forward,” spokeswoman Shelby Wieman wrote in an email.
The bill is just beginning its legislative journey and will need several committee hearings and votes in the House and Senate before reaching the governor’s desk.
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