MOUNT VERNON — The state’s proposed gas tax increase of 18 cents per gallon received different reactions from two public entities in the county — Knox Area Transit and the county Engineer’s Office — and a locally owned trucking firm in Mount Vernon, C L Richert Trucking Co. Inc.
One expecting the worst outcome of the three is Richert Trucking, with company President Donnie Richert emphasizing that the company, which employs 24 truckers working within a 600-mile radius of the city, buys a large amount of mostly diesel fuel each month. If the proposed gas tax increase was a federal tax, it would be passed on to customers as a fuel surcharge. But since it’s a proposed state tax, “It’s just one more expense we can’t pass on (to customers) most of the time,” he said. So the company is bracing for a net loss of income when the tax becomes effective.
Richert was asked about supporting state lawmakers’ views that the increased gas tax is needed to provide more funding for distressed state roads and bridges. “I have no problem doing my part,” Richert said. “We’ve got to do what we have to do to fix them. But people don’t realize our costs are already high for material and labor, everything that goes on a truck like the tires.” The company always stresses efficiency, but that must be balanced by keeping truck driving equipment safe and up-to-date. “There’s a really fine line going on there.”
Meanwhile, Knox Area Transit, which relies on ridership fares, is still examining what a gas tax hike would mean. KAT Director Martin McAvoy said in the more than five years he has served in his position, fares have not been increased. At the same time, KAT is expanding its services, with plans to offer a village-to-Mount Vernon shuttle service later this year to involve Fredericktown, Centerburg and Danville.
“Everything we have and do is on wheels,” he said. Presently, because the state Department of Transportation changed its funding formula, KAT is to receive about $900,000 from federal funds this year, and $220,000 from the state as well as $40,000 from the county. The federal and state funds have been boosted, so that this year’s overall subsidized budget of $2.1 million is larger than last year’s $1.8 million.
However, KAT’s two highest costs are labor and fuel, McAvoy said, offering, “So it (the proposed gas tax increase) will have an impact. What that impact is I don’t know at this time.” He added that operating costs rise yearly, which is one reason he put in for a grant involving CNG — Compressed Natural Gas. It burns cleaner than gas, is more efficient, and remains more stable in price than gasoline. The grant was not awarded this year but in the future he hopes to have at last some shuttles operating on CNG.
Knox County Engineer Cameron Keaton said he’s aware the proposed gas tax increase of 18 cents isn’t a popular proposal with some Ohioans. But the way he views it, the current state tax of 28 cents per gallon has remained flat for more than a decade — while material costs to construct and repair roads and bridges have risen substantially. That rise has been in the 60 percent range over time.
“We have to fix roads and bridges. The money’s got to come from somewhere,” Keaton said.
Currently, of that 28 cents per gallon, the split is 60-40 with the state receiving the larger share and Ohio’s counties, municipalities and townships splitting the 40 percent. Each of Ohio’s counties receives an equal share, which is 3 percent, or $2.42 million. That represents nearly 45 percent of the Knox County Engineer’s Office total budget of $5.83 million.
If the proposed 18 cents per gallon increase passes, Keaton has calculated his office will receive an extra 1.9 cents per gallon, which will work out to $1.6 million more per year for roads and bridges. Combined with the current gas tax funding, that would $4 million per year instead of $2.4 million. Municipalities and townships would benefit as well. Although their fuel costs would increase marginally, the net gain in revenue would be substantial.
And in addition, a state proposal would tie the gas tax to inflation per the Consumer Price Index — meaning if the cost of goods including gas increased each year through inflation as they almost invariably do — the gas tax would tick up each year as well. Keaton said that’s a necessary component to address a national infrastructure that is crumbling because governments presently cannot keep up with need — based on inadequate flat funding received.
With $4 million instead of $2.4 million annually to fix existing roads and bridges, Keaton said what can be achieved would be markedly improved on an overall project basis. Projects would be expedited, and larger in size.
“So when somebody says, ‘What are you going to do with all that extra money? We have projects that have been planned out for years ... and it’s going to take a year that (increase) to trickle in (if it passes),” he offered.
As one example, Keaton said a large paving project this year of $1.1 million involves paving about half of Apple Valley Road, or five miles’ worth, with the county receiving $620,000 in grant funding. The county is having to take out an $80,000 loan to cover part of the cost and paying the rest “out of our pocket,” he offered, adding that if the engineer’s office had more funding, it could pave more and do so more quickly. As it stands, the county is hoping to pave the other half of Apple Valley Road next year.
The county typically matches grants received for road and bridge projects by providing 20 percent or of project costs. Some projects for this year are already funded, such the Parrott Street Bridge project, which should go out to bid by June, and the east portion of Sycamore Road. He considers resurfacing eight miles of western Sycamore Road the county’s biggest accomplishment last year per a single project.
Other projects are what he calls “in the pipeline” for future work, classified as all projects are by the state Department of Transportation (ODOT) as safety, resurfacing or bridge projects. Safety projects “in the pipeline” include a guard rail project for various roads next year, and a pavement marking project in 2023. Such projects, obviously, would benefit from increased gas tax funds, he noted, either by moving them forward on scheduling or expanding their scope.
Other projects under the category of resurfacing, include Croton Road in 2020, at a cost of $328,000, and Upper Fredericktown Road in 2022, $838,000. Bridge projects and their costs include Lock Road in 2022, $1 million, and Beckley Road in 2023, $1.1 million. More funding to cover the county’s matching amounts can move some of these dates forward to the benefit of the county and its drivers, he offered.
