Representative proposes bill to increase gas tax

By Heather Mangold
City Editor

Gas prices could go up again.

Rep. Sue Scholer, R-26th, is proposing a bill that would add three cents to state gasoline tax and one cent to the state diesel tax. The money acquired from the tax would benefit Indiana's roads, bridges, transportation safety and new road construction.

Scholer said, "Indiana's road situation is getting pretty dyer and we need stable ongoing funding for it."

The Indiana Local Technical Assistance Program, an extension service of civil engineering, issued a report that assesses the needs for local roads and streets.

Thomas Martin, the program manager, said that the basic finding of the study is that there is a severe shortage of funds to adequately maintain local transportation facilities. The shortage has existed for long enough that there is now a need for short term funding simply to "catch up".

"The last few years we have taken from gaming funds and put that money into funds for local jurisdiction to use for roads," said Thomas, "But that is only every two years."

The attempt of this bill is to achieve long term funding for both state and local roads, said Thomas.

According to Thomas, short-term funds needed to upgrade the system so that an adequate maintenance program would be undertaken is $1 billion 20 million. Additional funds would be needed for bridges and culverts as well as safety improvements for roads through out the state. According to the report, $2.05 billion is needed for maintaining highways, streets, bridges, new construction and safety improvements.

On a per-year basis, $453 million is needed for Indiana's transportation facilities.

Rep. Tim Brown, R-41st, is on the roads and transportation committee that heard the bill on its first reading last week.

"I'm not so sure I'm for a tax increase until I look and see what the overall spending and revenue picture is," said Brown.

Brown said that when this type of bill has been proposed in the past, it led to a big surplus. He is concerned that if Indiana has an increase of money from the passage of this bill, it will lead to generous and unnecessary spending in other areas.

Scholer speculates that it is time for this tax and supports her bill.

The last time the gas tax was a benefit for local citizens was in 1994, said Scholer. She justified support for her bill by saying that the cost of gas goes up and down much more than three cents.

In Indiana, the current average for the price of gasoline is $1.434. A month ago, the average price was $1.474. Last year, the average price of gasoline in Indiana was more than 10 cents less, costing Hoosiers $1.325.

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City editor:
Heather Mangold

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