By WHITNEY WOODWARD, Courier Des Moines Bureau

DES MOINES --- A package of fee increases to fund road construction will fall short of raising the cash state officials say is needed, prompting lawmakers to reconsider a hike in the state's fuel tax.

For months, Republicans and Democrats have collaborated on a bill which would address, in whole or in part, a Department of Transportation request for $200 million in road funding, which officials say is needed to pay for maintenance and construction projects.

But that plan --- which would increase Iowans' annual vehicle registration fees and eliminate a longstanding break for most pickup truck owners --- would not meet the DOT's funding target.

Failing to address infrastructure needs --- either completely or in part --- has thrust a fuel tax hike back into the limelight.

Under the bill before lawmakers, vehicle owners would start paying the increased fees after they purchase a different vehicle, ensuring Iowans won't be required to pay more than they are for their current vehicles. Grandfathering the fee increases is designed to protect motorists' checkbooks while quelling legislators' election-year fears that voters will punish them for backing the fee increases.

But delaying the fees means the bill would generate just $11.6 million in the first year.

House Minority Leader Christopher Rants, R-Sioux City, said the phase-in aspect is shrewd but problematic. While he said he believes Iowans should be protected from immediate hits to their checkbooks, the phase-in means it will take years to generate significant construction money.

"You're not going to build any bridges or build a lot of four-lane highways doing it in that manner," Rants said.

Five years after being implemented, the package would generate an estimated $151.8 million annually --- about three-quarters of the DOT's request.

With less than two weeks left in the legislative session, Democrats haven't shored up sufficient bipartisan support in the form of Republican votes to get the bill passed, said House Majority Leader Kevin McCarthy, D-Des Moines. Rants said Thursday his caucus remains divided on the issue.

"House Democrats have our ducks in order, House Republicans do not at this point," McCarthy said. "We've said from day one that (on) every road bill, we need 50-50."

While a harsh winter that left Iowa roads riddled with potholes and a looming adjournment date could pressure fence-sitters to back the bill, lawmakers also are considering a fuel tax increase for next year.

Both Democrat and Republican lawmakers have harbored desires to hike the state tax on gasoline and diesel because the increase would be shouldered by both in-state and out-of-state motorists.

Each one-cent increase in the current 20.7 cents per gallon tax would raise about $22 million each year.

Discussion about the tax was all but extinguished this spring after Culver took the hike off the negotiating table last year, citing the already high price of gas and diesel. But during a meeting with the Iowa Department of Transportation Commission this week, Culver said the issue should be discussed during the campaign season and could be revived come 2009.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the package of registration fees could be coupled with the gas tax to create a sizeable road construction pot.

"We don't necessarily think you have to take the $200 million bite all (at once)," Gronstal said.

Contact Whitney Woodward

at (515) 243-0138

or whitney.woodward@lee.net.

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