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Haslam calls Tennessee gas tax proposal ‘right thing to do’

Republican Gov. Bill Haslam speaks to reporter about his budget priorities at the state Capitol in Nashville, Tenn., on Monday, Jan. 30, 2017. Haslam was scheduled to address a joint convention of the Tennessee General Assembly later in the day. (AP Photo/Erik Schelzig)
Republican Gov. Bill Haslam speaks to reporter about his budget priorities at the state Capitol in Nashville, Tenn., on Monday, Jan. 30, 2017. Haslam was scheduled to address a joint convention of the Tennessee General Assembly later in the day. (AP Photo/Erik Schelzig) Republican Gov. Bill Haslam speaks to reporter about his budget priorities at the state Capitol in Nashville, Tenn., on Monday, Jan. 30, 2017. Haslam was scheduled to address a joint convention of the Tennessee General Assembly later in the day. (AP Photo/Erik Schelzig)

By Associated Press 1 min read

NASHVILLE, Tenn. (AP) – Republican Gov. Bill Haslam is making the case to lawmakers that increasing the state’s fuel taxes is “the right thing to do” for Tennessee’s transportation needs.

Haslam told reporters before his annual State of the State address on Monday that the state can’t count on occasional surplus money to tackle a more than $10 billion backlog of road and bridge projects around the state.

The state’s 21.4-cent tax on every gallon of gasoline hasn’t been increased since 1989. Haslam is proposing a 7-cent increase on the tax on gas and 12 cents on diesel.

The governor’s transportation proposal would raise about $280 million per year in new transportation funding, while cutting about the same amount in taxes on groceries, income from stocks and bonds and corporate taxes.