BREAKING: Gov. Haslam Claims ‘There Have Not Been Any Other Alternatives Proposed’ To His Gas Tax Increase

“Gov. Bill Haslam did not acknowledge the multiple alternatives to his proposed gas tax increase that legislators have introduced in the statehouse during an interview with Knoxville media Friday,” WBIR TV reports.

“There have not been any other alternatives proposed. No one else has laid out a plan and said ‘This is how we’re going to pay for it,'” WBIR reports Haslam stated when asked about alternative plans to fund road construction, such as The Hawk Plan, which would provide that funding by reallocating 0.25 percent of the current sales tax.

“He’s very aware of other plans,” State Rep. David Hawk (R-Greeneville), author of The Hawk Plan, told WBIR:

Hawk said he has discussed his plan with Haslam of taking one-quarter of one percent of sales tax revenue to create a recurring dedicated fund to address transportation needs long-term.

Rep. Jason Zachary of Knoxville said his constituents are pushing him to find an alternative to a tax increase by pointing out the state is sitting on a $1 billion dollar budget surplus and another $1 billion surplus is projected for this year.

He has proposed allocating a quarter of any state surplus money over $5 million each month to TDOT.

“I think there have been multiple plans proposed. I’ve talked to representatives. Mine is not a long term solution by any means but is a one-time kick start to begin to move us down the path of addressing the infrastructure needs,” Zachary told WBIR.

But Gov. Haslam continued to say throughout the day on Friday that on other alternative exists to his plan:

However, Haslam, who spent Friday morning trying to sell the gas tax increase to business and political leaders at a Knoxville Chamber breakfast, dismissed those alternate plans.

“Right now we’re the only plan out there that says ‘Here’s how much it’s going to cost. Here’s how we’re going to pay for it. And here are the road projects that are involved.’ Any other plan needs to say ‘Here’s how we’re going to pay for it.’ And if it’s less than what we’re talking about, ‘Here’s what road projects we’re not going to do,'” Haslam said.

Haslam’s plan calls for a 7-cent hike on gasoline and a 12-cent increase on diesel fuel to pay for the state’s $10 billion in backlogged road projects. His plan includes cuts to the grocery tax, franchise and excise tax and the Hall income tax.

During Friday’s breakfast, he explained it also includes city and county governments receiving funding to pay for local road repairs.

“The city of Knoxville and Knox county will get $2 million each every year to maintain your local roads in addition to the $500 million worth of projects that will happen here,” Haslam said.

State Rep. Mark Pody has also introduced his own alternative to Gov. Haslam’s gas tax increase plan.

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2 Thoughts to “BREAKING: Gov. Haslam Claims ‘There Have Not Been Any Other Alternatives Proposed’ To His Gas Tax Increase”

  1. […] week, Bill Haslam publicly stated there were “no alternative plans” proposed to his Haslam School of Business-endorsed gas tax […]

  2. Bob

    With an over $1 Billion budget surplus, we shouldn’t even be having a discussion of a gas tax increase.