WASHINGTON – A USA Today survey suggests that as gasoline prices increase, state officials across the nation are paying more attention to potential relief measures, reports the newspaper.
"As gas prices rise, states are eyeing relief measures ranging from reducing gas taxes to running more state vehicles on alternative fuels," notes the newspaper, adding that a survey of all 50 states and Washington, DC, found "deep concern in state capitals" about how high gasoline prices could be affecting "family budgets and state operations."
For example, in Washington, state legislators have agreed to appropriate nearly $60 million "to cover increased fuel costs for government vehicles."
In at least 20 states, the most common form of relief is measures that seek to reduce or temporarily lift gasoline taxes. State proposals range from a reduction of 8 cents per gallon in Alaska, to a reduction of 49.5 cents per gallon in New York, writes the newspaper.
"It hurts students. It hurts families. It hurts small businesses," North Carolina Conservatives United Bill President Graham told USA Today, adding, "At some point, you have to be reasonable about what the public can pay." Graham is leading a campaign to reduce or impose a temporary suspension of North Carolina's 30.2 cents per gallon gasoline tax.
Gov. Robert Ehrlich (R) is considering "a tax holiday or reduction" in Maryland's gasoline tax, while Gov. Mark Sanford (R) is proposing a measure to suspend South Carolina's gasoline tax of 16.75 cents a gallon for three months.
However, not all governors are ready to jump on the gasoline tax cut bandwagon. In most states, revenues generated from gasoline taxes are used to fund state highway improvement projects or education initiatives. Therefore, some governors are "reluctant to cut funding for such popular programs," notes the newspaper
"There's no good evidence that reducing gas taxes in a state will reduce gas prices at the pump," Kate Philips, spokeswoman for Pennsylvania Gov. Ed Rendell (D) told the newspaper.
USA Today cites other measures state legislatures are considering as the summer driving season approaches, including:
- Promote the use of ethanol-blended fuels
- Urge the federal government to intervene and reduce gasoline prices
- Practice conservation
- Investigate supposed gasoline "gougers"
According to some state officials, state governments have few effective tools to use in regards to "the complex market mechanisms" that determine gasoline prices.
"We look at this as a global marketplace," Rob Hurless, energy policy adviser to Wyoming Gov. Dave Freudenthal (D) told the newspaper, adding, "It's really difficult for a small state to have any influence."