A University of Tennessee study released Wednesday is laying out some options for the state to boost its funding for road projects, ranging from charging drivers by the mile to tapping the state’s general fund.
Republican Gov. Bill Haslam has been traveling the state to make the case for why Tennessee needs to address the way it pays for its road needs. But any talk of a gas tax hike is being met with a largely chilly reception among state lawmakers – most of whom are facing re-election next year.
The governor has stopped short of any revenue proposals to help pay for billions of dollars’ worth of road project backlogs and needs. He instead wants lawmakers to first agree on which projects to pursue before deciding on a way to pay for it.
“Let’s put the menu out there and decide what we want to order,” Haslam told reporters earlier this week. “And then we’ll see how much that costs.”
The report by the Howard H. Baker Jr. Center for Public Policy at the University of Tennessee notes that the state’s 21.4-cent tax on each gallon of gasoline is the 12th lowest nationwide and fifth lowest among Southeastern states. The state’s revenues from the tax on diesel is the second-lowest in the region after South Carolina, the researchers said.