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Board hears concerns about local funding: 9‑cent gas tax, CARES Act effects and sunsets
Summary
Commissioners questioned the sustainability of current local funding and noted expiration and sunset provisions for local option taxes; Hernando staff said CARES Act funding temporarily reduced local matching requirements and that some local gas‑tax allocations expire in 2034.
Board members spent time clarifying how local funding streams affect transit operations, with a particular focus on the local 9‑cent gas tax and the temporary role of CARES Act dollars in recent years.
Joanne Granger and Darlene Lolly explained that Hernando uses a 9‑cent local option gas tax allocation to meet local match requirements, while Citrus County used CARES Act funds in recent years which reduced immediate local match obligations. An MPO staff member noted that pieces of Citrus County’s local option taxes have a sunset date around 2034, which could affect future local revenue unless boards adopt ordinances to renew or replace the revenue sources.
Commissioners asked staff to confirm whether local option taxes are renewable by ordinance or require other steps and requested clearer documentation of how CARES and other one‑time funds changed the 2023–2024 budget picture. Staff agreed to follow up with the detailed revenue and sunset provisions.
