Senate gas-tax hike: 6 cents it is

Majority Senate Republicans have decided that Ohio needs a gas-tax increase, just not nearly the size that Gov. Mike Dewine wants.

After weeks of needing to be convinced that any gas-tax hike was necessary, the Senate voted 24-6 Thursday evening to approve a 6-cent-a-gallon jump for gas and diesel fuel starting July 1.

The increase is one-third the size of Dewine’s proposed 18-cent increase, which would have raised about $2.5 billion over the next two years. Dewine and his transportation director have argued that the governor’s amount was the minimum needed to catch up on backlogged road and bridge maintenance projects over the next decade, complete needed safety upgrades and continue with major infrastructure projects such as the I-70-71 interchange.

Previously, the Ohio House approved a phased-in 10.7-cent gas-tax increase, plus a 20-cent increase for diesel fuel, that would have raised nearly $1.2 billion in new money over the next two years. The Senate plan is expected to generate about $800 million in revenue above current levels. A move by the top Democrat in the Gop-dominated Senate to match the House’s gas-tax figure was rebuffed.

The Senate bill and the House version now must be reconciled in conference committee before the March 31 deadline.

Senate leaders say their plan makes “significant strides” by focusing on maintenance, providing about 94 percent of what Dewine requested over two years. The proposal earmarks gas-tax revenue, ensuring that specific amounts are spent on state operations, road maintenance, major new construction and safety.

Department of Transportation officials said the Senate bill falls $1 billion short of the demonstrated need, providing $450 million less over two years for safety improvements, $335 million less for new construction and $265 million less for maintenance than Dewine requested.

Transportation Director Jack Marchbanks said, “We are reviewing the Senate changes and will work with the chamber to understand and refine their proposal. We stand by our testimony as to what we believe is needed to properly fund our transportation system.”

The Senate also would set the funding for public transit at $55 million per year, an increase over the current $33 million but down from the $100 million per year approved by the House. That $100 million figure was important to House Democrats, whose votes were needed to pass the budget.

The bill includes a $175 registration fee on electric vehicles and $75 on hybrids, to start Jan. 1. It also allows deputy registrars to charge an additional $1.75 fee.

The Senate gas-tax hike also is not set to automatically rise with inflation in future years, which Dewine proposed. The House also did not index its proposed gas-tax increase.

Considering Dewine’s consistent criticism of the House-passed gas tax, which he says wouldn’t raise enough to allow the state to complete a number of major construction projects, his administration will find even less to like about the Senate plan.

Dewine said Ohio has spent an average of $250 million to $300 million a year on new road construction for the past decade. That funding was propped up since 2013 by $1.5 billion in bonding against future turnpike revenue, but that money runs out at the end of this year.

“The thought we would go from there to zero dollars would come as a shock to the people of Ohio ... In six months, a year, when they look up and say, ‘What happened to that intersection they were supposed to work on?’” Dewine said Wednesday. “They will say, ‘Where is it?’ and the answer is, ‘There’s no money for it.’”

Curt Steiner, lead consultant for Fix Our Roads Ohio, a coalition of local governments and business groups advocating for Dewine’s proposed gas tax, said the Senate plan is insufficient.

“It’s a shame to see a bill on the floor that doesn’t raise enough revenue to do the job,” he said. “The governor has demonstrated some strong leadership here, and we would encourage the Senate to do better.”

Ohio’s gas tax, which must be used for roads and bridges, has not increased from 28 cents per gallon since 2005. It is currently lower than all surrounding states except Kentucky.

In an unusual move in committee, chairman Rob Mccolley, a Republican senator from Napoleon, voted against the budget bill because, he said, it did not include a full offsetting tax cut.

“I need to do what I promised my constituents,” he said.

Sen. Stephanie Kunze, R-hilliard, voted yes, while Sen. Tina Maharath, D-canal Winchester, voted against it.

Maharath said public transit has been underfunded for decades. “This is a small step closer to where we need to be, but it’s not enough.”

The Senate also removed a House-added provision that would have eliminated the requirement for a front license plate.