CHARLESTON, W.Va. — With three weeks to go before the Nov. 3 General Election, House of Delegates Democrats have renewed their call for Gov. Patrick Morrisey to call a special session to suspend the state gas tax.
Democrats cited continued conflict around the globe causing volatility in markets that is pushing energy prices higher in a Tuesday news conference.
“We’re renewing our call to Governor Morrissey and the Republican supermajority here in Charleston to call us back into session so we can do what’s within our power to provide some relief to our people here in West Virginia,” Del. Mike Pushkin, D-Kanawha, who also serves as the chairman of the West Virginia Democratic Party, said.
There’s also some GOP support.
Senator Chris Rose, R-Monongalia, said this would be an issue he works across the aisle on without hesitation. Rose said with no relief in site the state government should come together to provide some relief at the pump.
“There does not seem to be any solutions for what’s happening across the world that has impacted this,” Rose said Tuesday on WAJR’s “Talk of the Town.” “Let’s provide some relief for our constituents while the federal delegation tries to figure out the geopolitical politics on an international level.”
The money from the state tax gas goes to the state road fund, an industry official said it can’t afford the hit the suspension would create.
Contractors Association of West Virginia CEO Jason Pizatella said Tuesday the policy is shortsighted and could limit road maintenance and repair operations. There are about 20,000 workers in the state in the construction trades that could be harmed if tax revenue for road maintenance is disrupted.
“While it may have a short-term impact on prices after a couple of weeks, it’s going to have a much longer impact on the road fund and the ability for the state to plan road and bridge projects,” Pizatella said.
Rose estimated the loss to the state road fund to be about $150 million. He said lawmakers preserved about $120 million in state revenue during the last legislative session by agreeing to cut the personal income by five percent instead of the ten percent requested by the governor.
“Since we were budgeting for a 10 percent cut and settled on 5 percent, there is surplus in the budget we could move around,” Rose said. “I know no one wants to talk about it, but ultimately there are a massive amount of funds in the Rainy Day Fund that could be used for taxpayer relief.”
Ohio lawmakers agreed to cut state fuel taxes and backfill the revenue lost with about $750 million in revenue surplus. One difference in Ohio is a competitive race for governor with both candidates calling for the Republican majority to act. The tax on gas and diesel in Ohio is now suspended for a 90-day period that will expire around the end of the year.
“Our neighbors in Ohio take in a lot more gas tax than we do, they have a much larger population than we do, and they found a way to do it, and we need to do that as well,” Pushkin said.
Rose floated the idea of dipping into the state rainy day fund but made it clear that it would not be his preferred option to address the lost revenue if the gas tax is suspended. The pain at the pump and the grocery store is serious enough that Rose is urging his fellow lawmakers to act.
“I understand and appreciate that sentiment because nobody wants to be the one that has that headline,” Rose said. “When you have so many of your constituents hurting you, you have to have all things on the table, and if we can’t work it through the budget, we have to be seriously considering that.”