Gov. Beshear announces action to freeze Kentucky’s gas tax

FRANKFORT, Ky.

Gov. Andy Beshear took motion Thursday to freeze Kentucky’s gasoline tax, an emergency step meant to stop a looming fee improve as shoppers wrestle with surging costs on the pump.

The Democratic governor stated his administration’s motion prevents a rise of two cents per gallon within the gasoline tax that might have taken impact July 1. Freezing the gasoline tax collectively will save Kentuckians an estimated $35.4 million by early subsequent yr, Beshear stated.

“I do know that one of many largest challenges of the current is gasoline costs,” the governor stated in making the announcement at his weekly information convention.

“It is more durable for households to get to work,” he added. “It prices them extra to get their youngsters to high school, to take their households to church or to go on a hard-earned trip.”

Kentucky’s gasoline tax is about by state regulation, each in its fee and the way it’s calculated. The present fee of 26 cents per gallon was set to extend by 2 cents per gallon below a set off, which might have resulted in a worth improve on each common and diesel gas, the governor’s workplace stated.

The common gasoline worth throughout Kentucky was $4.31 per gallon on the finish of Could, up from about $2.85 a gallon a yr in the past, Beshear stated.

The governor stated he was freezing the gasoline tax fee by means of an emergency regulation. The motion drew pushback later within the day from Republican state Senate President Robert Stivers, who questioned the legality of the method utilized by Beshear. Stivers stated the governor “can’t deviate from the tax quantity decided by statute.”

“Not solely is that this motion unlawful, however it’s going to solely save residents 2 cents per gallon and with present costs in Kentucky reaching $5 per gallon, it’s going to have little to no impact on what Kentuckians ought to anticipate to pay on the pump,” Stivers stated in an announcement.

Stivers stated lawmakers look ahead to working with the governor to perform the objective of suspending any extra improve to the gasoline tax however doing so in a “authorized and correct style.”

Republican Home Speaker David Osborne, in the meantime, pointed to reduction coming from a measure handed by the GOP-led legislature that is geared toward regularly phasing out Kentucky’s particular person earnings taxes. The primary fee lower is anticipated to “depart an estimated $500 million within the pockets of working Kentuckians subsequent yr,” Osborne stated.

Funds collected by means of the state gasoline tax contribute to the state’s Highway Fund.

Beshear stated the gasoline tax fee freeze would have “no materials impression” on the state’s transportation price range and will not have an effect on any ongoing or deliberate tasks.

“All tasks will transfer ahead,” stated state Transportation Secretary Jim Grey.

The freeze is projected to scale back budgeted Highway Fund revenues by 1.6% over the primary seven months of the subsequent fiscal yr, the governor stated. Beshear stated he’ll suggest that lawmakers dip into the state’s huge Common Fund price range surplus subsequent yr to make up for misplaced street fund revenues. The Common Fund pays for many state companies, together with schooling and public security.

The governor additionally stated he was asking for recommendation from Lawyer Common Daniel Cameron’s workplace on whether or not he ought to declare a state of emergency to activate the state’s worth gouging statute. The AG’s workplace stated later it had acquired the governor’s letter and was reviewing it. Cameron is among the many Republicans operating for governor in 2023, when Beshear will search a second time period.

Kentucky Republicans are more and more attempting to tie Beshear to Democratic President Joe Biden amid the hardships brought on by surging client costs.

Whereas acknowledging the hardships brought on by inflation, the governor has touted his dealing with of the state’s financial system. He factors to record-setting job creation and enterprise investments together with the lowest-ever unemployment fee in Kentucky, posted in April. The state landed its two largest financial growth tasks ever — each battery crops — throughout Beshear’s tenure as governor. Latest polling confirmed Beshear stays in style in GOP-trending Kentucky.

In an interview with The Related Press on Thursday, the governor commented on the criticism from his potential GOP rivals in subsequent yr’s gubernatorial race.

“Sadly some — as a substitute of lifting us up, speaking about the place we’re going — are prepared to run … our financial system down for their very own political functions,” he stated.

Throughout his information convention, Beshear highlighted a number of applications that may assist inflation-battered households pay their hire, mortgage or utilities or assist them with childcare bills.

“Don’t be afraid to ask for assist,” the governor stated.