03/11/2011

Gas Tax

The Appropriations and Finance Chairs in the Senate have now gone on record as saying they are in favor of capping the gas tax this year.  In fact, Sen. Richard Stevens (Republican – Wake), told lobbyists this week that the only question is whether they will cap the tax at its current level (32.5 cents) or at the former capped level of 29.5 cents.  The last time the gas tax was capped the Highway Fund and Highway Trust Fund lost more than $500 million over four years.  That was BEFORE the economy tanked.  The impact of losing that money now would be devastating to our industry and to our transportation system.  It will result in more lay-offs.  It will further cripple an industry that is already struggling.  This is the message we must take to the General Assembly.

We cannot be the only industry fighting the cap.  Chambers of Commerce from across the state as well as the State Chamber need to make it clear this is NOT a business friendly move.

Every $1 million lost represents a loss of 14 direct jobs and 28 direct and indirect jobs.  Do the math.  $100 million lost if the tax is capped equals 2,800 jobs in peril.  Based on current forecasts, if the tax is capped at 32.5 cents the Highway Fund and Highway Trust Fund would lose a combined $250 million over the next two fiscal years.  Most of that loss will hit contract resurfacing.

I believe there is only one way we can change the plan to cap the gas tax.  Legislators needs to hear from workers across the state.  The message:  “I need my job.  Do not cap the gas tax.”