W.Va. drivers could save $50 to $60 next year
Legislators are expected to approve a freeze on an increase of 5 to 7 cents per gallon in the state gas tax, beginning Jan. 1.
Legislators are expected to approve a freeze on an increase of 5 to 7 cents per gallon in the state gas tax, beginning Jan. 1.
Gov. Joe Manchin announced Monday that the gas tax freeze will be on the agenda for a special session set to begin this afternoon.
Manchin said the freeze will amount to $50 to $60 in savings next year for most households.
"Every little bit helps," Manchin said. "Every penny helps."
In order to make up for the lost gas tax revenue, Manchin will request a transfer of $40 million of surplus revenue from this fiscal year, which ends June 30, to the state Road Fund.
"It's one thing to say we're not going to raise the taxes ... but the responsible thing is to also maintain the highways," he said.
Under current law, the state gas tax has two parts: A base rate of 20.5 cents a gallon, and an additional tax equal to 5 percent of the average wholesale cost of a gallon of gasoline for the previous July through October.
Currently, that part of the tax is 11.7 cents a gallon, but wholesale gas prices are running more than $1 a gallon higher than in 2007, projecting to at least a 5-cent a gallon increase.
If approved by the Legislature, it will mark the second time that the Manchin administration has imposed a freeze on the wholesale gas tax.
In 2006, Manchin blocked what would have been a 3.4-cent a gallon increase in the tax. However, that freeze cost the Road Fund more than $52 million in lost revenue, forcing the Division of Highways to postpone or cancel numerous planned road maintenance projects.
On Monday, state Transportation Secretary Paul Mattox said he was confident the proposed $40 million infusion of surplus revenue will help assure that the division won't have to defer planned road projects in 2009.
Although the session is set to begin at 5 p.m. today, the agenda for what is anticipated to be a two-day session isn't expected to be finalized until this morning.
One issue still to be resolved, Manchin said, is a bill proposed by the House and Senate Judiciary Committee chairs to require disclosure of sources of significant amounts of money for independent election advocacy campaigns.
Legislators are expected to approve a freeze on an increase of 5 to 7 cents per gallon in the state gas tax, beginning Jan. 1.
Gov. Joe Manchin announced Monday that the gas tax freeze will be on the agenda for a special session set to begin this afternoon.
Manchin said the freeze will amount to $50 to $60 in savings next year for most households.
"Every little bit helps," Manchin said. "Every penny helps."
In order to make up for the lost gas tax revenue, Manchin will request a transfer of $40 million of surplus revenue from this fiscal year, which ends June 30, to the state Road Fund.
"It's one thing to say we're not going to raise the taxes ... but the responsible thing is to also maintain the highways," he said.
Under current law, the state gas tax has two parts: A base rate of 20.5 cents a gallon, and an additional tax equal to 5 percent of the average wholesale cost of a gallon of gasoline for the previous July through October.
Currently, that part of the tax is 11.7 cents a gallon, but wholesale gas prices are running more than $1 a gallon higher than in 2007, projecting to at least a 5-cent a gallon increase.
If approved by the Legislature, it will mark the second time that the Manchin administration has imposed a freeze on the wholesale gas tax.
In 2006, Manchin blocked what would have been a 3.4-cent a gallon increase in the tax. However, that freeze cost the Road Fund more than $52 million in lost revenue, forcing the Division of Highways to postpone or cancel numerous planned road maintenance projects.
On Monday, state Transportation Secretary Paul Mattox said he was confident the proposed $40 million infusion of surplus revenue will help assure that the division won't have to defer planned road projects in 2009.
Although the session is set to begin at 5 p.m. today, the agenda for what is anticipated to be a two-day session isn't expected to be finalized until this morning.
One issue still to be resolved, Manchin said, is a bill proposed by the House and Senate Judiciary Committee chairs to require disclosure of sources of significant amounts of money for independent election advocacy campaigns.
In April, a federal district judge struck down much of a 2005 election reform law that required groups running political and election advocacy ads to disclose major contributors on the grounds the law was too vague.
Manchin said he was concerned that, as proposed, the current draft of the reform bill is too long and complicated to deal with in a brief special session.
"We're seeing if they can get it condensed to four or five pages," he said.
Several bills are expected on the agenda to appropriate surplus revenue from the current budget year, which ends June 30. Those are expected to include:
$25 million to underwrite the state's share of costs for transferring nearly 15,000 teachers and school service personnel into the Teachers Retirement System.
Anne Lambright, executive director of the Consolidated Public Retirement Board, said the exact cost of the transfer won't be known until the numbers of teachers and service personnel who opt to buy-in for full TRS pension benefits is determined - and participants have until June 30, 2009, to exercise the buy-in option.
Manchin also is expected to submit legislation to resolve issues from the transfer election - including accepting the transfers of five Marion County teachers whose principal failed to submit their forms before the deadline.
$30 million for ongoing state computer upgrades
$24 million to pay down various state debts
$5 million for school boards to cover higher fuel costs for school buses
$1 million for Meals on Wheels, also to offset higher fuel prices
$1 million additional for 2008-09 Promise scholarships
Reach Phil Kabler at ph...@wvgazette.com or 348-1220.
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