Two lawmakers on the Maine Legislature’s transportation panel were skeptical of a Monday proposal to lift the state gas tax for the rest of the year, citing the need to keep road and bridge funding stable while prices shoot up around the country.
Rep. Laurel Libby, R-Auburn, submitted an after-deadline bill that would suspend the state gas tax of 30 cents per gallon and use a portion of an estimated $1.2 billion revenue surplus through mid-2023 to cover the revenue loss. Suspending the tax for the rest of the year would cost $184 million, according to a Maine Department of Transportation estimate.
The transportation department would be the most affected. More than three-quarters of the revenue, or $133 million, goes to roads and bridges as the dominant source of state funding for that policy area. The remaining $51 million is split between the secretary of state’s office, the Department of Public Safety and cities and towns.
Transportation overseers and Gov. Janet Mills’ office said there was no doubt Mainers will be stressed by the rising gas prices, which exceeded $4 per gallon on Monday as U.S. and Europe discuss the idea of banning imported Russian oil as the war with Ukraine intensifies.
But two lawmakers were wary of undercutting Maine’s transportation funding mix and wanted to see details before issuing a firm opinion. Mills was noncommittal, though she pointed to her plan to give nearly half of the excess revenues back to Mainers in the form of a $750 check.
“I’m OK with the concept, but the devil is in the details,” said Sen. Brad Farrin of Norridgewock, the only Senate Republican on the Legislature’s transportation committee.
Transportation funding has been one of the most intractable problems in Augusta for roughly a decade. The system had a maintenance shortfall pegged at $230 million per year in early 2021 and has long been reliant on annual voter-approved voting to not fall further behind. Mills, a Democrat, has proposed shifting $100 million in surplus money to transportation to forgo borrowing this year.
A legislative commission deadlocked in 2020 on a long-term funding fix for the system, only proposing a vague funding increase without settling on solutions after Republicans drew a line against raising the gas tax, which was decoupled from inflation in 2011.
Libby characterized her proposal in a news release as a way to immediately help families who are hurt by rising costs.
“Maine people are struggling to pay for their basic necessities in the face of crippling inflation, and in a rural state like ours, gasoline is absolutely a necessity,” she said.
The bill will have to be approved by the Democratic-controlled Legislative Council to be heard by lawmakers this year. Mills spokesperson Lindsay Crete did not say the governor was against the proposal, but she noted the proposed $750 checks could be used by Mainers who get them in any way.
“Rising costs – whether at the pump, the grocery store, or elsewhere – are taking a toll on Maine people, and the Governor is open to considering fiscally-responsible ways that state government can support Maine people through these challenging times,” Crete said.
Both Farrin and Sen. Bill Diamond, D-Windham, had not heard details of the bill on Monday. But both felt there was a need to make sure transportation funding stayed steady. Diamond said even if the gas tax is lifted, it may provide minimal relief if fuel costs climb rapidly.
“If gas gets to $5.25 [a gallon] and we bring it down to $4.95, how much of an effect is that going to have?” he said.