NASHVILLE, Tenn. (AP) — Republican Gov. Bill Haslam is scheduled to present his proposal to boost state road funding Wednesday.
Haslam has acknowledged that any long-term road program to pay for the state's $6 billion transportation backlog will likely have to include the state's first gas tax increase since 1989. Lawmakers aren't expecting him to propose a hike of more than 7 to 9 cents per gallon on top of the current 21.4-cent tax.
Each penny of the gas tax is worth about $32 million per year, according to the state Transportation Department.
Other proposals could include:
- Increasing the 18.4 cents per gallon tax on diesel to be the same as the gasoline tax. Each penny of the diesel tax generates about $10 million a year.
- Charging electric and natural gas powered vehicles to use Tennessee roads.
- Increasing vehicle registration fees.
- Designating a sizable chunk of the state's more than $1 billion surplus for road projects.
- Giving cities and counties the power to charge an additional local tax to pay for transit projects.
That local option would be geared toward getting urban Democrats on board with the plan, which could be crucial to the measure passing the House, where Republicans who hold a wide majority are skittish about voting for any tax increase, even if it is balanced with cuts to taxes in other areas.
Haslam had been prepared to release his transportation plan after Thanksgiving but was urged by fellow Republicans to put off the proposal so they could explore their own funding ideas. None of those alternatives has been made public so far.
A recent study by state Comptroller Justin Wilson found that Tennessee's fuel tax collections have remained essentially flat since 2000 amid improving fuel efficiency, decreasing miles driven and mounting roadbuilding costs. The purchasing power of the state's gas tax collections has fallen by about half since the last time the tax was increased in 1989, according to the report.Greitens took office earlier this month. This is his first time serving in elected office.