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Despite Low Gas Prices, Gas Tax Hike Appears Unlikely

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A person gets fuel after gas prices dropped below $2 a gallon at the Quick Mart in High Point, N.C., Wednesday, Jan. 14, 2015. (AP Photo/Daily Free Press, Laura Greene)

A person gets fuel after gas prices dropped below $2 a gallon at the Quick Mart in High Point, N.C., Wednesday, Jan. 14, 2015. (AP Photo/Daily Free Press, Laura Greene)

JOAN LOWY, Associated Press

WASHINGTON (AP) — The new Republican-controlled Congress is facing an old problem: where to find the money for highway and transit programs.

With gasoline prices at their lowest in years when the new Congress convened, there had been talk that it might be time to raise federal gas and diesel taxes, which haven’t budged in more than 20 years.

But already, GOP leaders are tamping down expectations, leaving no clear solution to the funding problem.

“I don’t know of any support for a gas tax increase in Congress,” Sen. John Cornyn, R-Texas, the No. 2 Senate GOP leader, said flatly. Explained Sen. John McCain, R-Ariz.: “They don’t want to vote for a tax increase.”

House Speaker John Boehner, R-Ohio, while not closing the door entirely, said there aren’t enough votes in the House for a gas tax increase. Rep. Bill Shuster, R-Pa., the House Transportation and Infrastructure Committee chairman, was equally doubtful.

“The president has ruled out a gas tax. I don’t think there’s a will in Congress, and the American people don’t want it,” Shuster recently told The Associated Press.

The gas tax, now 18.4 cents a gallon, and the diesel fuel tax, now 24.4 cents a gallon, were last increased in 1993. In the meantime, Americans are driving less per capita, cars are more fuel efficient and construction costs have gone up. Fuel taxes bring in about $34 billion a year to the federal Highway Trust Fund, but the government spends about $50 billion a year. The trust fund has been the main source of federal transportation aid to states for more than 60 years.

In that environment, two key GOP senators — Finance Committee Chairman Orrin Hatch of Utah and Environment and Public Works Committee Chairman James Inhofe of Oklahoma — had raised the hopes of transportation advocates by saying raising fuel taxes should be considered along with other funding options, using the more politically palatable term “user fees.” But the idea appears to be a long shot at best.

Congress has kept transportation programs teetering on the edge of insolvency since 2008 by repeatedly transferring just enough funds from the general treasury — and making corresponding spending cuts elsewhere in the federal budget — to meet obligations for a few more months or, in one case, as long as two years. Finding acceptable spending cuts to offset the transfers gets more difficult each time.

The latest funding patch cleared Congress last August only about three hours before the Transportation Department said it would begin cutting back aid payments to states. That fix is only expected to last through May, when Congress will be back where it started unless lawmakers act sooner.

“The political support for increasing taxes to pay for transportation appears to be very limited,” said Joshua Schank, president of the Eno Center for Transportation, a think tank.

A majority of Americans think the economic benefits of good transportation outweigh the cost, but they can’t agree on how to pay for new highways or repairs of old ones. An Associated Press-GfK poll last summer, before the plunge in gas prices, showed 58 percent opposed raising federal gasoline taxes to pay for repair, replacement or expansion of roads and bridges. Only 14 percent supported an increase.

The lack of voter enthusiasm for raising gas taxes hasn’t deterred die-hard gas tax supporters who say it is preferable to a one-time fix because it would ensure continued funding. Rep. Earl Blumenauer, D-Ore., issued a statement Thursday saying he intends to reintroduce a bill to raise fuel taxes 15 cents a gallon. He introduced a similar bill last year, but it wasn’t considered by the GOP-controlled House. Blumenauer estimated the increase would raise an additional $210 billion over the next decade.

President Barack Obama has previously rejected a gas tax increase, instead proposing to close corporate tax loopholes and use the revenue to pay for infrastructure. His plan would boost highway spending 22 percent and transit spending 70 percent over four years.

Transportation Secretary Anthony Foxx told a transportation conference this week that’s still the administration’s preferred option, but he also expressed “openness to ideas that emerge from Congress.”

Sen. John Thune, R-S.D., the No. 3 Senate GOP leader, who helped raise speculation that a fuel tax increase might be possible when he said all possible funding options should be considered, including a gas tax increase, this week described such a possibility as “unlikely.”

“I can’t see a scenario for some sort of user fee increase that you’d have to offset with tax relief in some other area,” he told reporters. “Nobody is going to vote for a gas tax increase.”

Instead, Thune said, closing tax loopholes, especially those that encourage corporations to move overseas, and using the money to pay for infrastructure is his “preferred option.” But he also observed that “tax increases are always hard, and there’s a perception that we ought to be able to find savings in other areas to fund infrastructure.”

___

Follow Joan Lowy on Twitter at http://www.twitter.com/AP_Joan_Lowy

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Barbara Lee

Congresswoman Barbara Lee Reflects on Historic Moment Less Than One Week from Election Day

Congresswoman Barbara Lee (CA-12) today released a piece on Medium reflecting on Vice President Kamala Harris’ historic presidential campaign 50 years after Lee worked on the presidential campaign of Congresswoman Shirley Chisholm.

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Congresswoman Barbara Lee
Congresswoman Barbara Lee.

Congresswoman Barbara Lee (CA-12) today released a piece on Medium reflecting on Vice President Kamala Harris’ historic presidential campaign 50 years after Lee worked on the presidential campaign of Congresswoman Shirley Chisholm: 

“As Election Day approaches, I’m reflecting on a few dates and numbers that mean something to me.

Zero: the number of Black members in Congress 56 years ago. Next Congress, we hope to swear in over 60 members in the Congressional Black Caucus. 

Three: The number of Black women to ever serve in the United States Senate since the first Congress in 1789.

Two: The number of Black women that will be elected to the Senate this year alone if we do our job.

1972: The first time a Black woman, Congresswoman Shirley Chisholm, ran for president in one of the major political parties of the United States.

Zero: the number of Black women to ever serve as president of the United States. 

IF we do the work, we can change that with President Kamala Harris.

As I reflect on what would be Congresswoman Chisholm’s 100th birthday next month, I could not help but remember that my first official involvement in U.S. politics was working for her presidential campaign in 1972.

Over 50 years later, I have been involved in every single campaign since. Shirley was my mentor — she was a bold visionary, a progressive woman who understood that working together in coalitions was the only way to make life better for everyone, to build an equitable society and democracy that lived up to the creed of “liberty and justice for all.”

The historic moment we are in today is not lost on me. I have had the privilege to have known Vice President Kamala Harris for over three decades. She, after all, is a daughter of the East Bay. She, like Shirley, truly is a fighter for the people.

And I know she can move our country forward in a new way. As a member of her National Advisory Board, I have campaigned across our country to help take her message, her legacy of service, and her “to-do list,” as she says, to voters who were almost starting to feel hopeless, but are now feeling hopeful once again, captured by the politics joy and the bright possibilities brought upon by a possible Harris-Walz administration.

Recently, I visited churches in North Carolina with members of the Congressional Black Caucus. The chair of our CBC political action committee, Chairman Gregory Meeks from New York’s fifth district, eloquently and powerfully presented a vision of what Dr. Maya Angelou wrote in her famous poem, “And Still I Rise:” “I am the dream and the hope of the slave.”

Meeks remarked that on Jan. 20, 2025, we will observe the birthday of our drum major for justice, Dr. Martin Luther King Jr.

He also described that on Jan. 20, IF we do the work — if we knock on doors, if we make those phone calls, if we spread our message — standing on the podium at the U.S. Capitol will be the first Black speaker of the House of Representatives, Hakeem Jeffries.

In the wings will be over 60 members of the Congressional Black Caucus. Holding Frederick Douglass’ Bible will be the first African American woman appointed to the highest court of the land, Supreme Court Justice Ketanji Brown Jackson.

She will be swearing-in the first Black woman to serve as president, Kamala Harris, in front of the shining white dome of the United States Capitol, built by enslaved Black people.

In front of her and beyond, the tens of millions of Black men and women who voted for her. The world will witness the hope and the dreams of our ancestors ushering in a new way forward.

As I sat in front of the stage this week at the Ellipse in Washington, D.C., as Vice President Harris delivered remarks with the Oval Office behind her, I could not help but feel that our country was ready for this historic moment.

We are not only voting for a Black woman as Commander in Chief of the wealthiest and most powerful country in the world. We are definitively stating that we will not allow the clocks of freedom and justice to be turned back.

We are voting for our ancestors’ hopes and dreams. We are voting for the generations that will come after us, long after we are gone. We are voting for Vice President Kamala Harris.

Let’s get this done.

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Bay Area

Pamela Price Appoints Deputy D.A. Jennifer Kassan as New Director of Community Support Bureau

On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau. Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.

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Alameda County Deputy District Attorney Jennifer Kassan. Courtesy photo.
Alameda County Deputy District Attorney Jennifer Kassan. Courtesy photo.

Special to The Post

On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau.

Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.

Working in the DA’s new administration since 2023, Kassan was most recently assigned to the Organized Retail Theft Prosecution team.

Kassan has a master’s degree in City Planning from the University of California, Berkeley. She received a National Science Foundation Fellowship from Yale Law School, and graduated from Yale Law School in 1995. She earned her B.A. in Psychology with a minor emphasis in Ethnic Studies from UC Berkeley.

Kassan’s education, extensive legal background, list of notable accomplishments and impressive resume includes helping to found and lead multiple organizations to support community wealth building including:

 

  • Community Ventures, a nonprofit organization that promotes locally-based community economic development,
  • the Sustainable Economies Law Center, a nonprofit that provides legal information, training, and representation to support sustainable economies
  • the Force for Good Fund, a nonprofit impact investment fund
  • Crowdfund Main Street, a licensed portal for regulation crowdfunding
  • Opportunity Main Street, a place-based ecosystem building organization that supports under-represented entrepreneurs and provides education about community-based investing.

In addition, Kassan served as an elected member of the City Council of Fremont, California from 2018 to 2024, and on the Securities and Exchange Commission Advisory Committee on Small and Emerging Companies.

In 2020 she was named to the list of World-Changing Women in Conscious Business by SOCAP Global.

“We are excited to see Jenny accept the role as the new leader for the Community Support Bureau,” said Price. “She brings a wealth of talent, experience, and a vision to expand our office’s engagement with community groups and residents, that will level-up our

outreach programs and partnerships with local organizations with the aim of promoting crime prevention.

“We thank Interim CSB Director Esther Lemus, who is now assigned to our office’s

Restitution Unit, for her hard work and a great job fostering positive relationships between the DAO and the community.”

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Bay Area

Oakland Mayor Sheng Thao’s Open Letter to Philip Dreyfuss, Recall Election’s Primary Funder

Oaklanders Defending Democracy, a group opposing the recall of Oakland Mayor Sheng Thao, shared an open letter she wrote to Philip Dreyfuss of Farallon Capital, a coal hedge fund. According to Thao’s supporters, “Dreyfuss is the primary funder of the recall effort to remove her from office. He has not explained his motivations or answered one question about why he’s funding the recall or what his agenda is for Oakland.

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Oakland Mayor Sheng Thao,
Oakland Mayor Sheng Thao

Special to The Post

 

 

Publishers note: Oaklanders Defending Democracy, a group opposing the recall of Oakland Mayor Sheng Thao, shared an open letter she wrote to Philip Dreyfuss of Farallon Capital, a coal hedge fund. 

 

According to Thao’s supporters, “Dreyfuss is the primary funder of the recall effort to remove her from office. He has not explained his motivations or answered one question about why he’s funding the recall or what his agenda is for Oakland.

 

“All we know about him is his firm has invested over $2 billion in coal since 2022. Farallon Capital is a global hedge fund with $39 billion capital under management, headquartered in San Francisco, the supporters say.

 

The effort to recall Mayor Sheng Thao was built on top of an argument about a crime wave, pinning the blame for it on a newly elected Mayor. Now that crime has dropped massively, recall proponents are left with no compelling argument.

Oct. 30

Dear Philip Dreyfuss,

We haven’t met. As you know, I’m the Mayor of Oakland, elected in 2022 to serve and protect this city. Since stepping into office, I’ve tackled rising crime, homelessness, and budget challenges head-on, working tirelessly for Oakland’s future.

You are a hedge-fund manager and coal investor who doesn’t live in Oakland who is trying to buy our city government. But the people didn’t elect you, they elected me to protect them from people like you.

Shortly after my term began, you launched a campaign to remove me from office, pouring in nearly $500,000 of your own wealth. We’ll know the outcome of your campaign on Nov. 6, but let’s be clear about what’s at stake.

Since I took office, crime has dropped over 30%—we’re on track for less than 100 homicides for the first time since 2019, with 15,000 fewer crimes overall.

We’ve invested hundreds of millions into affordable housing, modernized our 911 system, streamlined construction permitting, and are fighting to make Oakland a safer and cleaner city.

If your recall succeeds, Oakland will see four mayors in just five years, another election for mayor the following year and a whopping $10 million cost to taxpayers. In other words, chaos. None of this will impact you because you don’t live here.

Oaklanders deserve to know who you are. I looked into your record and found that the hedge fund you help manage, Farallon Capital, has invested over $2 billion in coal since 2022.

For years, Oakland has stood tall against coal money threatening the health of West Oakland, Chinatown, Jack London and downtown.

Did you know that life expectancy in West Oakland is 7.5 years lower than the County average? Or that our children suffer from asthma at a rate twice as high as the rest of the County?

Philip, instead of trying to use your wealth to hijack our democracy and create chaos in our city you could have put your money where your mouth is.

Instead of investing in coal you could have invested in our young people—created scholarships for our college-bound kids, funded apprenticeships for those who want to learn a trade or helped rid our schools of lead.

Instead, you chose to divide us while you try to buy us. But I’m here to tell you, Philip, on behalf of the 450,000 residents of my city that Oakland is not for sale. NO to coal. NO to chaos. And NO to your selfish and self-serving recall.

Oakland Mayor Sheng Thao, City Hall, Oakland

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