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Council warned suspension of gas and excise taxes could cut road revenues by roughly $800,000 over four months
Summary
A letter presented at the meeting, citing the Association of Indiana Counties, estimated a potential 50% reduction in motor-vehicle-highway and local road revenues during a suspension of gas and excise taxes — a preliminary combined loss of about $800,000 over four months. Council signaled willingness to consider temporary support if state reimbursements do not arrive.
Council members discussed a letter (and an Association of Indiana Counties press release attached to it) warning that suspension of Indiana’s gas and excise taxes could sharply reduce county transportation revenues.
The letter, read during the meeting, said the highway department receives on average about $345,000 per month in revenue and that a 50% reduction during a four-month suspension could decrease monthly revenue to roughly $172,500, producing a projected loss of about $690,000 over four months. The county’s local road and street (LRS) revenue, the letter said, averages about $65,500 per month and could drop to about $33,250 — a projected loss around $133,000 over four months. Combined preliminary estimates produced a total potential loss of roughly $800,000, the materials said.
Officials emphasized those numbers were preliminary and that county-specific estimates were still pending from state associations. The meeting highlighted two complicating factors: many asphalt paving and seal-coat projects for 2026 have already been awarded and are underway, and the state’s timeline for any reimbursement (if the state restores the revenue) is uncertain. The county noted a three-month lag in gas-tax receipts and said June payments could be the first showing the shortfall.
Council members expressed concern about paying contractors mid-process if revenue is delayed and discussed options to bridge a shortfall — including temporarily using other available county balances such as LIT (Local Income Tax) money. Several council members said they would support temporary funding if necessary; no specific amount was requested at the meeting.
Why it matters: the potential shortfall would directly affect road maintenance schedules, contractor payments and local-budget planning, and staff said they will continue to monitor state guidance and county cash flows.
