House Republican Leader Comments on House Approval of Gas Tax Increase

CONCORD – House Republican Leader Gene Chandler (R-Bartlett) today offered the following comments relative to the House vote on SB367, a bill that would, in part, raise the gas tax by 23%. The bill passed by a vote of 193-141.

House Republican Leader Gene Chandler (R-Bartlett)

“Whether or not you support the concept of a gas tax increase, there are many problems with SB367. With all due respect to the bill and its supporters, before jumping into one of the largest tax increases in recent history, we should have taken a more detailed look at the system by which the revenue would be used, and reform that system before pumping any more money into it.”

“In the last 2 budgets alone, $38 million has been diverted from the highway fund in excess of the allowable amount in RSA 9:9-b. SB367 may state that the new revenue can only be used for specific purposes, but if the legislature can’t even follow a reasonable standing law regarding highway funds, how can we say that the provision in SB367 won’t be disregarded or suspended for future budget years?”

“Also, this bill, as written, removes tolls in Merrimack, which results in a loss of revenue to the Turnpike Fund. Contrary to popular belief, this new revenue does not all go to local road improvement. It allocates 42% of revenue to the I-93 widening project. The I-93 widening was already allocated $50 million as part of the 10 Year Highway Plan.”

“Folks that were hoping for immediate relief for their local roads will be disappointed. Municipal block grants will not commence until FY2016 and will be just 12% of the prior years’ revenue. In FY2016, additional aid to towns and cities resulting from the tax increase will be just $4 million per year statewide. Once divided up, most NH towns will get <1% of that amount. Larger cities and towns may get 1%-6%. Once they receive the grants, towns are not required to spend their block grant on infrastructure repair.”