COLUMBUS – Call it the Incredible Shrinking Tax: Ohio’s proposed gas tax increase is now a third of what it was just a few weeks ago.
The Ohio Senate Thursday approved its version of the state’s transportation budget, increasing the state’s gas tax by 6 cents a gallon to maintain roads and bridges, down from the House’s planned increase of 10.7 cents a gallon and well below Gov. Mike DeWine’s proposed 18 cents a gallon.
The bill passed the GOP-controlled Senate with a 24-to-6 vote, setting up a showdown with the House and the Republican governor.
“This bill makes important investments in our infrastructure. We believe the bill will fund Ohio’s needs and provide wise stewardship of taxpayer dollars,” said Senate President Larry Obhof (R-Medina), who was skeptical of the need for the full tax increase and said he would not support it without a cut in taxes elsewhere.
The Republican-controlled House proposed a 10.7 cents-per-gallon increase for gas over three years, with diesel fuel going up 20 cents a gallon.
DeWine, also a Republican, proposed raising Ohio’s current tax of 28 cents per gallon by 18 cents and adjusting it annually for inflation, an idea that won support from a statewide coalition of business and transportation officials.
“Heavy borrowing by the state in recent years to fund state highways has not helped counties, townships and municipalities with their deficient roadways,” Curt Steiner, a spokesman for the Fix Our Roads Ohio coalition, said following the vote. “Without a substantial increase in the gas tax, our local roads and bridges will continue to decay as revenue fails to keep up with the effects of inflation since 2005, the last time Ohio’s gas tax was adjusted.”
The Senate measure includes $200 million for major new projects and $267 million for safety projects, while increasing public transit funding to $110 million over the biennium, more than DeWine called for but about half of what the House approved.
“If we actually funded our public transportation systems, we’d reduce traffic, keep our roads in better condition and cut our carbon footprint,” said Sen. Tina Maharath (D-Columbus) who was one of the six senators who voted no.
The budget heads back to the House for agreement on Senate changes in a conference committee. It must be signed into law by DeWine by March 31.
“We ask the General Assembly to work closely with the [DeWine] administration and adopt a budget that adequately serves our needs at the state and local levels for years to come,” Steiner said.