Sullivan County officials say state action should protect highway funding despite gas-tax suspension

Sullivan County’s highway funding picture changed this month after state-level adjustments to grant limits and a temporary gas-tax suspension.

An agency official told the commissioners the state reduced the maximum award for the Community Crossings grant while introducing a lane-mile distribution formula. Under that formula the county’s distribution came to roughly $496,000 — money that the official said is specifically earmarked for road work and requires creation of a restricted fund (a new fund number was discussed) to receive the allocation.

The official also said the governor suspended the gas tax for a third consecutive month, which would reduce the state highway fund receipts counties normally receive. “If nothing has been done, we’d essentially have a 25% cut to our budget,” the official said, but added that the governor’s press release directs state highway-fund distributions to counties in an amount equal to what they are losing from the suspension, so the county expects no immediate budget shortfall.

Commissioners asked procedural questions about how the lane-mile dollars must be used and how to set up the required restricted fund. The official said the distribution must be placed in a new restricted fund similar in treatment to prior restricted highway funds and outlined that the funds are intended for road improvements and cannot be used for unrelated expenditures.

The board did not take further action at the meeting; the presentation functioned as an informational briefing while staff works to establish the required fund and confirm application timing for additional grant opportunities.