LOUISVILLE, Ky. (WDRB) — As Indiana's gas tax holiday winds down, Gov. Mike Braun discussed how the state is reimbursing local governments.
Braun first suspended the 7% gas usage tax April 8 for 30 days. It was extended for another 30 days on May 6, and then again June 3. The suspension is expected to have saved Hoosiers about 62 cents per gallon.
At the beginning of July, Braun extended the gas tax holiday for the third — and what could be the final — time.
According to Indiana state law, the governor can only declare or extend a gas tax through a 120-day period. Braun would need special legislative approval to extend it again.
This means the gas tax holiday will expire Aug. 6.
While the tax has given drivers a break from high gas prices, it also paused a major source of funding for local road repairs and transportation projects.
Braun, however, said the state didn't have to choose between helping drivers and funding infrastructure.
"In the meantime, we have been able to replenish all those lost revenues to locals and into our state roads and bridges accounts," Braun said.
Earlier this week, the Indiana State Board of Finance approved more than $121 million in reimbursements covering April and May gas tax collections. Of that total, nearly $38 million will go directly to counties, cities and towns.
In Floyd County, for example, that is roughly $207,000 in reimbursements, according to documents from the Indiana State Comptroller.
Braun said Indiana's nearly $2 billion budget surplus made those reimbursements possible. But he said paying for road projects is still becoming more expensive because construction costs remain high.
"What we do — and all states are going to do — is fund roads and bridges," Braun said. "Because from the last administration, inflation went up across the board 25%, 22%, 23% and 24%. Steel and concrete almost doubled that."
Braun said those higher costs mean road funding does not stretch as far as it once did.
"Sadly, that has remained lofty," Braun said. "That's going to make the infrastructure dollar not go near as far."
Additional reimbursement requests will be presented to the Board of Finance in the coming months. All reimbursements are expected to be completed by Nov. 1.
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