What will the impact be to Northeast Ohio if legislative action is passed under the President’s proposed federal gas holiday announced today? The plan calls for Congress to suspend the federal gas tax for three months and urging state and local governments to pursue similar suspensions of their gas taxes.

NOACA’s Board of Directors passed a resolution in March 2022 to establish the agency’s position opposing federal and state legislation to temporarily suspend motor vehicle user fees. 

Any proposal to suspend the gas tax will impact the transportation budget jeopardizing funding streams for transportation projects for our region. Although American consumers need relief from the gas spiking costs, the bottom line assumptions do not support or guarantee that a gas suspension would reduce or stem costs in the long run. 

Although the average household will save $39.91 per month, a suspension in gas tax results in a total loss of $112 million over a three-month period for both federal and state revenue gas tax normally collected in the five county region. 

Reduced funding for transportation projects when inflation is at an all-time high also further challenges available resources.  The Ohio Department of Transportation’s April 2022 Construction Cost Outlook reports a composite 12.1% increase in materials from January 2021 to January 2022. Notable commodities include:

• Asphalt – up 14.6%
• Re-bar – up 12.3%
• Structural steel – up 17.8%
• Diesel Fuel – up 68%

Overall, in combination with labor and commodities shortages, project are realizing increases upward of 30-40%.

NOACA will continue to oppose Federal and State legislation to suspend motor vehicle user fees and the negative impacts on infrastructure investments and state of good repairs for our region.