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Daily News Staff

Rising gasoline prices at the pumps haven't slowed the flow of tax dollars to the state, said Department of Transportation Secretary Frank Busalacchi.

The state collects 29.9 cents per gallon, in addition to 3 cents per gallon for environmental clean-up programs. Overall the gas tax will bring in about $1 billion this year, about $26 million more than last year, according to the non-partisan Legislative Fiscal Bureau. The gas tax and the annual $55 per-car registration fee are the major revenue sources for transportation programs.

But state motorists haven't cut back their driving, he said in an interview Wednesday at the DOT's District 7 office in Rhinelander.

"Our revenues seem pretty stable," he said. "It's within a range that we are comfortable with ." But that could change, he acknowledged, if gas prices stay high for an extended period or go higher.

"There's a lot of nervousness going on," he said, "I'm very nervous, the stock market is nervous. If people stop moving around, if they stop buying, then we really get ourselves into a jam."

In addition to high oil prices, inflation is making a larger impact on the nation's economy. The DOT planners budgeted a 2 percent inflation factor for projects and maintenance. The figure may be too low.

"Initially my reaction is, yeah, I am very concerned about that," he said. "Inflation is the big bad bear. We are watching it very closely. It eats up dollars very quickly."

Rising inflation, even by a small amount, has a large impact on the proposed $4.4 billion transportation budget crafted by Gov. Jim Doyle. Busalacchi said the $4.4 billion was a 16 percent increase over the previous budget. The budget provides a $110 million increase for state highway rehabilitation and a $64 million increase in the Major Highway Program.

The secretary cautioned the additional $18 million proposed for road maintenance may not be enough. "We had a severe winter," he said, "We are running the numbers on maintenance. We are running on the edge." The state begins buying road salt in spring because prices rise the closer it gets to winter.

"The concern is....that we keep cutting the ribbon on new highways and roads and we are fighting a battle over the amount of money we put in for maintenance. In the scheme of things it's pretty small dollars. We have to have the money in maintenance."

He believes that the Legislature will pass the overall transportation budget as proposed, but said Joint Finance Committee will have concerns about the proposed transfer of money from the transportation for school busing aid. He defended the proposal, however, saying large school districts such as Rhinelander need the help.

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