Tennessee has been ranked in the top tier of states for its infrastructure for several years in a row in CNBC's annual list of America's Top States for Business.
Inherent in that infrastructure, according to the cable network's methodology for composing its list, is "access to transportation in all modes" and the "vitality of each state's transportation system by the value of goods shipped by air, waterways, roads and rail."
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* McCormick says state may consider new road debt before increasing gas tax
On Tuesday, automotive accessory manufacturer RemSource USA said it would build a $4 million plant in Ooltewah that will employ 89. In doing so, Tim Parkes, Remington Industries chairman and chief executive officer, said, "For the North American market, Chattanooga is the ultimate logistical location to optimally support our customers' ever-changing needs."
Without good roads, Tennessee doesn't make the top tier of the CNBC list and doesn't earn "logistical" praise by a manufacturer willing to locate here.
Gov. Bill Haslam, a conservative not anxious to raise taxes of any kind, began telling people late this spring and early this summer that it's time to consider raising the state's gas tax to help pay for those roads. Funds that paid for 1990's roads can't keep up in 2015, and the state's share of the Federal Highway Trust Fund declined from $145 per capita in 2008 to $132 per capita in 2013.
Indeed, in 2010, Tennessee's per capita revenue for highways was the lowest of the 50 states.
A January report by state Comptroller Justin Wilson said possible "funding and financing options" to address infrastructure and transportation needs include gas tax increases, variable rate and indexed gas tax rates, vehicle registration fees, weight-distance fees, tolls, general funds, debt financing, alternative fuel vehicles, local funding options, a vehicle miles traveled tax and public-private partnerships.
Tennessee House Majority Leader Gerald McCormick told the Hamilton County Pachyderm Club on Monday he isn't advocating for any particular funding option but believes other methods such as debt financing (bonds) should be considered by the General Assembly before it considers what would be "a very large [gas tax] increase."
Haslam has said he would wait until the legislature meets in February before he proposes a specific fix.
Tennessee's roads have always been on a pay-as-you-go plan. Whatever the governor proposes and if and however the General Assembly decides to fund it - it is important to keep that top tier designation - it would be desirable to maintain pay-as-you-go.