RALEIGH ? N.C. Gov. Mike Easley said Friday that he wants the General
Assembly to freeze the gasoline tax, and he plans to provide "broad-based tax
relief" in his budget proposal next week.
The gasoline tax, currently at 29.9 cents a gallon, is the one of the highest
in the Southeast. The tax is recalculated twice a year based on the wholesale
price of gasoline.
Gas prices jumped last year after Hurricanes Katrina and Rita damaged oil
operations along the Gulf Coast. The gas tax increased 2.8 cents per gallon Jan.
1, and critics say it could increase again July 1.
Easley said his proposal would prevent the tax from climbing, although it
could drop. The General Assembly reconvenes Tuesday, the same day anti-gas-tax
forces were expected to rally not far from Easley's office in Raleigh.
Most Republicans and several House Democrats, particularly in western North
Carolina, asked for rolling back the tax late last year, but they were rebuffed
by Easley and other legislative leaders.
"That's going to be a real positive," said Rep. Bruce Goforth, D-Buncombe,
one of the early freeze supporters. "People need relief, so the sooner the
better."
Easley, a Democrat, blamed the higher prices on President Bush and Congress
for their inability to ease the burden on consumers. Easley's budget also will
include $10 million in heating and cooling assistance for low-income
families.
"Nobody ever anticipated that Washington would let gas prices get this high,"
Easley said. "I believe that it is appropriate to put a freeze in place. Even if
gas prices continue to rise, the state tax will not."
Easley's release didn't mention the other tax relief proposals, and his
office did not provide any details. He said his budget would provide an
additional $218.7 million for road construction and repairs to make up for lost
gas tax revenue.
Legislative financial analysts told budget-writers Thursday that they expect
a revenue surplus of nearly $1.1 billion when the fiscal year ends June 30.
Combined with money unused by state agencies or unallocated by
budget-writers, as well as unexpected revenue growth projected for next year,
the General Assembly will have roughly $2 billion available for new spending or
tax reductions for the year starting July 1.
Easley, House Speaker Jim Black, D-Mecklenburg, and Senate leader Marc
Basnight, D-Dare, have generally been cool to the idea of pulling back the
gasoline tax, arguing that it would help motorists only a little while delaying
construction of road projects. The state faces a $30 billion shortfall in
transportation needs over the next 25 years.
But the governor said Friday the state has done all it can and blamed federal
officials for continued high prices, in part by failing to wait until recently
to investigate record oil company profits.
Bill Graham, a Salisbury attorney who has led a personal anti-gas-tax
campaign and is organizing Tuesday's rally, didn't return a phone call seeking
comment Friday. Neither did his consulting firm in Raleigh.
Senate Republican Leader Phil Berger, R-Rockingham, said he was glad to see
Easley "come around to a position that the gas tax in North Carolina could be
too high."
Berger and other Republicans asked Easley last fall to call a special session
to keep the gas tax at 27.1 cents per gallon before it rose Jan. 1. Senate
Republicans plan to seek legislation this session that would roll the tax back
to 27.1 cents.
Black and others House Democrats plan to roll out legislation next week
intended to keep the gas tax from increasing this summer, according to Julie
Robinson, a spokeswoman for Black.
Basnight, in a prepared statement, said gas-tax legislation would be
considered when senators have more information on how it would impact road
building and consumers. The state also should consider legislation to promote
alternative fuels and fight price-gouging, he said.
At a glance
GAS PROPOSAL: Governor Mike Easley has called for the
General Assembly to freeze the gasoline tax, which is currently at 29.9 cents a
gallon.
LEGISLATIVE SUPPORT: Many lawmakers asked for the tax rate
to be rolled back late last year, but they were rebuffed by Easley and other
legislative leaders.
OTHER PROPOSAL: Easley said he also plans to provide
"broad-based tax relief" in his budget proposal next week.