Fuels

Minner Proposes Gas, Cigarette Tax Hikes

5 cents on fuel, 45 cents on smokes

DOVER, Del. -- Governor Ruth Ann Minner has proposed a $3.24 billion budget for next year that raises spending by nearly 5% while asking for more money from Delaware's smokers and motorists, reported The News Journal.

State House Republicans expressed dismay at Minner's proposal for the year that begins July 1, targeting her call for a five-cents-a-gallon increase in fuel taxes to help pay for backlogged road construction and a 45-cents-a-pack hike in cigarette taxes to pay for new health care programs.

Minner's proposal for fixing [image-nocss] the state's overwhelmed road construction program starts to address what was estimated in late 2005 to be a $2.7 billion gap between work the state Department of Transportation said was needed through 2012 and the money projected to be available. Last week, the administration said it had trimmed that gap to $1.5 billion with cost efficiencies, changes in use of federal aid and adjustments to project timetables, the report said.

In her budget, Minner still draws most of DelDOT's $350 million in operational costs from the Transportation Trust Fund, which receives money from tolls, vehicle fees and fuel taxes, rather than the general fund, where most taxes collected by the state go and which pays for most programs and operations.

Instead of shifting DelDOT's costs and freeing up that much money for construction, Minner proposes higher fuel taxes, vehicle fees and tolls to bring into the trust fund an estimated $78.6 million more.

AAA Mid-Atlantic spokeswoman Catherine Rossi said the club would support increases in tolls and gas taxes if it were guaranteed the money would be used solely for expenses that benefit motorists; however, a new poll of Delaware motorists by AAA Mid-Atlantic cited by the News Journal shows that 58% are opposed to any increase in gasoline taxes.

We venture to say this gas tax increase will not be well-received by motorists, Rossi told the newspaper.

Minner said she knows no one will like higher taxes and fees, but said Delawareans will support them if they know the cash will go just to road work. People want good roads, and they can see where those dollars are going and that makes a difference, she said.

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