Top Court Rules Gas Tax Just for Highways

By David Darman on Monday, April 19, 2004.

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New Hampshire's Supreme Court ruled today that the state constitution won't allow gasoline tax money to be used on passenger rail projects.

New Hampshire Public Radio's David Darman has more.

The ruling is a victory for NH's Motor Transport Association, which brought the suit after the state used gas tax money on the Nashua Commuter Rail project.

The association based its claim on a constitutional amendment that dates back to 1938.
That amendment states that gas taxes will be spent on highways and nothing else.

Bob Scully is president of the New Hampshire Motor Transport Association.

He says the state practice of using highway funds for rail had to be stopped.
there's precedents that were being established there. we thought they were illegal. the courts agreed with us. we're not opposed to rail. If the rail interests want to build them, then we just suggest they find another way to pay for them.

The ruling sets back the state Transportation Department's plan to bring commuter rail service to Nashua.

With highway fund money unavailable, state lawmakers now have to look for other funding sources for rail.

Transportation commissioner Carol Murray says she's aware the state's budget is too tight now to pay for rail costs.
09 138 looking to the general fund in the state coffers to fund the nashua project or any rail project, i don't see as a really viable possibility. but clearly, with this decision out in the state, clearly ...discussions with the legislature will occur. 09 157

DOT had hoped the Nashua project would be part of an intermodal transportation network.

The network would consist of highways, intercity buses, and trains.

Tom Irwin of the New Hampshire chapter of the Conservation law foundation says this transportation mix is necessary as the state's population grows.

if we simply continue investing in highway expansion, congestion always returns. so, its not a sustainable solution. we do need some form, some source of funding to assist in that to find more sustainable approaches.

New Hampshire's transportation mix may one day look the way officials envision it.

In the meantime, the latest Supreme Court decision keeps highway money where its been for generations.

Its paying for highways.