Republican Gov. Mike DeWine said Friday that a 90-day pause in the state’s gas tax, proposed by fellow Republican leaders and Vivek Ramaswamy’s gubernatorial campaign, is “just not a good idea.”
While Ramaswamy has no current power to summon lawmakers or propose legislation, he acted as the central champion of the proposal, which would pass at the earliest about a month before the November election. That timing could boost his campaign in what remains a tight race in an environment of voters frustrated with foreign conflict and the price increases it has spawned.
DeWine, while acknowledging that everyone shares the sting of higher gas prices, said the proposal would undermine Ohio’s road building and repair efforts. He also questioned who would pick up the $750 million in lost revenue of temporarily cutting the gas taxes.
“We don’t really know where this money will come from,” DeWine told a group of reporters in Cleveland. “What sometimes we forget is that a significant portion of this $750 million would come from villages, cities, townships and counties all over the state of Ohio.”
A gallon of unleaded gasoline costs about $4.42 in Ohio today, according to AAA, a 50% increase from a year ago. Economists attribute the surge to the U.S. war with Iran. Democrats think it’s a condition that sets them up to beat expectations nationally and gain power in Congress in November.
Ohio’s gas tax adds a 38.5-cent tax on every gallon of unleaded gas and a 47-cent tax per gallon of diesel. The money collected pays for road and highway maintenance and construction. That gas tax has remained flat since 2019, when DeWine signed a state budget that raised it. Since then, the funding stream for road and bridge infrastructure has come under pressure from years of unusually high inflation that raises the costs of construction. Also, more fuel-efficient vehicles on the roads has meant less tax money being being collected.
The Ramaswamy plan calls for halting the gas tax to offer relief for drivers, and then backfilling the lost money for state and local road repairs with money from other accounts. That starts with what’s referred to as a “checking account” of the Ohio Department of Transportation, then the general fund, then the state’s rainy day fund, which protects Ohio’s bond ratings and is traditionally saved for macroeconomic slowdowns.
But DeWine has warned that ODOT is nearing a cash shortfall, and suspending its revenue would only accelerate the problem. And according to the state’s budgeting office, the $1.6 billion in ODOT’s “checking account” is already obligated toward $5 billion of open purchase orders for operations, maintenance and capital improvements.
“There is no money in the account that is not planned for future projects,” said Pete LuPiba, a spokesman for the Office of Budget and Management.
Ramaswamy presented his plan at the Statehouse on Wednesday, flanked by his running mate, sitting Senate President Rob McColley, plus House Speaker Matt Huffman.
Despite the unusual nature of a candidate promising to deliver legislation before he takes office, Ramaswamy said lawmakers would return early to Columbus on Sept. 30 to pass legislation pausing the gas tax.
“This isn’t a campaign promise, this is action,” Ramaswamy said.
Olivia Wile, a spokeswoman for Huffman, said in a statement the proposal does not divert any money from ODOT or local government.
“Both will continue to be funded without interruption. Thanks to wise stewardship of the state’s budget and better-than-expected revenues, our existing budget has sufficient resources to provide Ohioans with much-needed relief at the pump while maintaining funds for our critical infrastructure investments,” she said.
Signal Statewide reached out to Ramaswamy’s campaign and to a spokesman for McColley to respond to DeWine’s comments. They did not respond before publication.
DeWine hedged slightly Friday on whether he would back a gas tax holiday, emphasizing that he hasn’t seen a specific legislative proposal yet from Ramaswamy. DeWine’s opposition is to tapping ODOT money to fund such a plan. That complicates the path forward for Ramaswamy and his allies in the legislature. To pass legislation that takes effect immediately (and by Election Day), they would need support from Democrats.
Hours before Ramaswamy announced his gas tax pause on Wednesday, Amy Acton, Ramaswamy’s Democratic opponent, did so as well, though without detailing how she would backfill lost tax revenue.
Acton also called on lawmakers to include a data center moratorium as part of any legislation that passes when they reconvene. Other Democrats have floated the idea of re-appropriating $600 million in state funds earmarked for the Cleveland Browns’ new stadium in Brook Park.
Huffman said Wednesday that in an election season focused on cost of living, he would welcome the Democrats’ opposition to gas price relief.
“I think Democrats who vote against this are doing it at their peril,” he said. “This is a very easily understood issue.”
Mark Naymik contributed reporting.
