Iowa Gov. Rules Out Taxes, Fees, and Tolls to Fund Transportation Projects

To the chagrin of many state legislators, Gov. Terry Branstad opposes new revenue measures to fund transportation projects, as he believes he is following the wishes of his constituents. Tax cuts, not increases, are on his agenda.

2 minute read

June 17, 2013, 10:00 AM PDT

By Irvin Dawid


Pointing to the current gas price spikes in the Midwest, Gov. Branstad asserted that "public support for a gas tax increase has evaporate(d)". He suggested two alternatives revenue measures "to fund critical road and bridge upgrades in the future", writes Rod Boshart.  

  • State gambling profits, and 
  • A dedicated share of the state sales tax.

Indeed, the highest gas prices in the U.S. are in the Midwest due to "refineries undergoing maintenance", according to Reuters.

“I think the idea of year after year coming back and saying we’ve got to raise the gas tax [last increased in 1989] when the public is strongly opposed to it doesn’t make a lot of sense,” added Branstad. He said he is not looking to increase any tax or fee, but he ruled out collecting tolls on roadways as an option.

For those who think that the road construction lobby is all-powerful, think again.

“I think (road-construction interests) have to come to the realization that they don’t have public support to raise the gas tax and it’s probably not going to happen in an election year,” he said.

Branstad directed "Department of Transportation Director Paul Trombino III and other interested groups to 'think outside the box' and come up with new ideas for financing the construction and maintenance of Iowa’s road system."      

In fact, tax cuts, not increases, appear to be occupying the governor, who "said he hoped to build on a tax-policy compromise he will sign into law next week that provides the largest tax cut in state history, saying more property and income tax relief is needed..."; adding, "I think it’s very likely we’ll be looking at reducing the income tax further in the 2014 legislative session." Boshart noted that while Branstad hadn't decided on whether to run for "an unprecedented sixth term...(he) sounded very much like a candidate during Friday’s interview".

Not all politicians are as convinced of the public's opposition to increasing gas taxes.

James Q. Lynch writes in the Mason City Globe Gazette that Senate Appropriations Committee Chairman Bob Dvorsky stated "(t)here was a 'boomlet' of support for increasing the gas tax for the first time in 24 years. He thought there were enough votes in the Senate, but support evaporated in the House."

Reinforcing the bi-partisan nature of increasing gas taxes to pay for needed transportation projects, Rep. Bobby Kaufmann, R-Wilton, stated, “I know there were a lot of unhappy people that a fuel tax didn’t pass this year. The illusion we were given was that if we had property tax reform that a gas tax would be approved.”

“We had the votes,” Kaufmann insisted.

Friday, June 7, 2013 in Waterloo Cedar Falls Courier

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 16, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

The Gross Reservoir, a large body of water surrounded by trees and mountains.

Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion

Overuse and climate change have caused the Colorado River’s water levels to plummet.

September 18, 2026 - Inside Climate News

A painted bus lane in NYC.

NYC DOT wants faster, more permanent street upgrades

The city is examining ways to build more concrete infrastructure without getting entangled in 'decades-long' projects.

September 21 - NYC Streetsblog

A woman looks at a utility bill.

'Something we’ve never seen before:' rising utility rates could strain city finances nationwide

Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020.

September 21 - Smart Cities Dive

A person scuba diving in a coral reef off Guam.

Trump to overrule local leaders, lease millions of acres of America’s Pacific Island territories’ seafloors to mining companies

International law says that the Indigenous people of America’s territories have a right to prior and informed consent regarding projects that impact their countries.

September 21 - Grist