Hancock County board warned of $400K–$500K summer shortfall from gas-tax pause; commissioners favor rebuilding reserves

County staff warned commissioners at their May 19 meeting that a temporary state gas-tax holiday could materially affect local transportation and operations budgets.

The staff member leading the fiscal update said the county's MVH/LRS revenue exposure could reduce operational funds by roughly $400,000–$500,000 if the pause extends through the summer. "I'm going to assume the county operational funds will be down anywhere between 400 and 500,000 dollars," the staff member said, adding the county maintains working capital for such events.

The presentation explained how the loss of gas-tax receipts flows through local funds and grants, noting cities and towns could be more exposed. The staff member described two options for the board's budget planning: curtail programs now to rebuild working capital later, or maintain current operations and accept risk to reserves. "I'm going to recommend we rebuild our working capital," the staff member said, calling it a better trade-off than deferring maintenance two years in a row.

Commissioners pressed staff for clarifications on timing and recovery options and were told staff would finish budget work by the auditor's June deadline and bring specific proposals to the June budget hearing. The board did not take a final vote on program cuts at the meeting; rather, the request was set to inform budget preparation and the June review with county council.

The item mattered because grant eligibility and capital projects tied to INDOT and other state funding could be affected if the state reduces highway-related disbursements. Staff noted existing grant-writing success with INDOT but warned that that success depends on grants continuing to be issued.

Next steps: staff will finalize budget options and present concrete proposals at the June budget hearing so commissioners and council can vote on whether to rebuild reserves or curtail services.