Suspending the gas tax won’t lower costs at the pump

 

Suspending the gas tax won’t lower costs at the pump

HECTOR AMEZCUA HAMEZCUA@SACBEE.COM

A customer prepares to fill up March 14 at the Costco in Elk Grove. The average gas price in Modesto on Friday was $5.58, according to AAA.

BY THE SACRAMENTO BEE EDITORIAL BOARD

In an unlikely yet unsurprising election year twist, Gov. Gavin Newsom has embraced the same view of California’s gas tax as state Republicans — that paying an extra 51 cents per gallon is a burden too big for residents already dealing with severe inflation. What the governor and conservatives conveniently ignore is that taking a “holiday” from the gas tax will only spare a few dollars per fill-up rather than meaningfully reduce the high costs of everyday essentials.

Soaring gas prices are a problem of California’s own making. The Golden State was among the nation’s biggest importers of Russian oil before President Joe Biden signed an executive order last week banning it amid escalating sanctions.

California has slow-walked a needed overhaul of its energy sector that could generate more renewable power within the state, leaving the public more vulnerable to the impacts of Russia’s barbaric war against Ukraine. Halting the gas tax won’t fix that.

On Monday, Rocklin Assemblyman Kevin Kiley tried and failed to convince the Legislature that suspending the gas tax and backfilling it with funds from the state budget would be a prudent move. The Republican legislator, who is running for Congress after failing to unseat Newsom in last year’s recall, claimed “it would dramatically reduce the cost of living” for consumers hurting from inflation.

That’s a stretch. For most full-size pickup trucks, removing the gas tax would amount to $10 to $15 in savings each time they visit the pump. For the typical car, it’s even less. When the average price per gallon in California is nearly $6, squashing tax revenue that funds infrastructure projects is more political stunt than consumer benefit.

Newsom, on the other hand, proposed suspending scheduled gasoline tax increases this year and each of the next two years “should economic conditions warrant it,” he said in January. The idea was praised by Republicans but irked labor groups and Democratic legislators who endured a bruising campaign five years ago to pass Senate Bill 1 and institute the tax.

The arrival of California’s steep excise tax was marked by widespread backlash from interest groups, backdoor deals and recall threats against legislators who supported it. In 2018, 57% of voters rejected a ballot measure seeking to repeal the tax, preserving the $54 billion initiative to improve road conditions in every county.

Gas tax funds have become a reliable source of infrastructure funding in the Sacramento area. Sacramento County will receive at least $24 million annually in the coming years, helping the region’s transportation authority make significant progress on a $1 billion backlog in road maintenance and pedestrian and bicycle improvements. The city has leveraged its share of SB 1 funds to pursue a host of major projects on Mack Road, J Street, Grand Avenue and Natomas Avenue as well as the second phase of complex roadway projects in East Sacramento and Meadowview.

The benefits have been even more pronounced region-wide. Sacramento’s six-county metro area has been able to fund roughly $800 million in projects, including improvements to Interstate 5 between Sacramento and Elk Grove as well as light rail and carpool extensions along Highway 50. Interchanges in western Placerville and a major upgrade of Woodland’s Main Street have also benefited from gas tax dollars.

At this point, if you see any sort of transportation-related construction, there is a good chance that California’s excise on gasoline made it possible.

Residents across the state need actual relief from inflation, not performative outrage and election year pandering to suspend a tax that helps fix California’s over-stressed roads.

California leaders should be more focused on the state’s overreliance on fossil fuels, the root cause of gas price inflation, which is now harming both our environment and our wallets. California-based Chevron is a top contributor to Kiley and numerous state policymakers lamenting the gas tax. If they really care about consumers, their time would be better spent helping to develop a more resilient and sustainable energy supply.

COMMENT:

Things may have changed in recent years, but as a young paralegal 20+ years ago, I worked on the Texaco side of the Chevron-Texaco merger. I've sat in the office of their former CEO and other executives. They made jokes about how they pay top environmentalists to write reports and plans for them so that they can shelf them and hide them away with NDAs. They'd pay the environmental folks so much money to write these reports and the NDAs were so tight, that those people couldn't then go public with the information. Very much Big Tobacco tactics. And they thought it was hilarious.