Maine Republicans urge gas tax relief

AUGUSTA – Republican House and Senate leaders said Tuesday they would welcome a special legislative session to focus on ways to ease the impact of high gas and oil prices and offered seven proposals they said should be considered by state officials.

Topping the list was a call for a suspension of Maine’s 25.9 cent gasoline tax for at least 60 days “to allow the market to stabilize.”

House Republican leader David Bowles of Sanford and Senate Republican leader Paul Davis of Sangerville, in a letter to Democratic Gov. John Baldacci, also proposed a repeal of automatic indexing of gasoline taxes and repeal of the tax on heating oil used by businesses.

Additionally, the Republican leaders suggested a temporary change in work schedules for state employees, shifting from five eight-hour days a week to four 10-hour days “wherever possible.”

Baldacci aides said Tuesday that the governor believed all options should be on the table. The governor is concerned, however, that a lack of competition in the oil industry might be the primary factor behind record profits in the industry over the past 18 months, according to Beth Nagusky, director of the Governor’s Office of Energy Independence and Security.

For that reason the issue really is a federal one, Nagusky countered. Baldacci believes President Bush should meet with oil industry leaders to help consumers nationwide find relief from the crippling fuel costs, she said.

Suspending Maine’s gas tax could prove ineffective if pump prices continue to skyrocket, according to Nagusky.

“There’s no guarantee consumers would ever see it,” she said of the possible savings of 25 cents per gallon.

Baldacci hopes to testify Thursday in Washington before the U.S. Senate’s Energy and Natural Resources Committee to let federal officials know how severely Mainers have been affected by the spike in oil prices, she said.

Unless there is a plan for how to raise the “tens of millions” of dollars that would be lost in two months of state gas tax revenues, Nagusky said, Baldacci is not inclined to call for a special session of the Legislature. Without other sources of funding, vital state programs such as public safety and highway maintenance would suffer in the meantime, she said.

Baldacci is committed to conservation efforts and has implemented policies that have helped the state save more than 500,000 gallons of motor fuel over the past two years, Nagusky said. She also said that by reducing driving speeds by 5 mph motorists could improve mileage and save as much as 22 cents per gallon.

The letter from Bowles and Davis also proposed a travel cutback and an expansion of car pooling, while suggesting that state officials consider the use of lower-grade fuels.

The proposals are similar to measures being considered in several other states to help ease the burden of gas prices on consumers. In Georgia, a monthlong moratorium on gas taxes and a slight dip in wholesale prices helped level fuel prices to an average of $3.05. The order by Gov. Sonny Perdue suspends until the end of September Georgia’s 7.5 cents a gallon excise tax and 4 percent sales tax on gasoline.

“In light of the sudden and unprecedented increase in the price of gasoline and heating oil, we offer the following proposals for your consideration,” Bowles and Davis wrote to Baldacci, who was away from the State House for much of the day Tuesday as he traveled to the Machias area.

“Republican leadership has agreed on this list of ideas as a way to provide relief to Maine citizens who are struggling to pay for gasoline and heating oil. We do not put this forward as a comprehensive list; we are open to useful ideas,” Bowles and Davis wrote.

The letter from Republican leaders was circulated in advance of a news conference scheduled at a convenience store near Republican Party headquarters down the street from the State House.

“Much of the price spike is a direct result of Hurricane Katrina and the shutdown of many refineries along the Gulf Coast,” the Republican leaders wrote. “It is unclear where prices will go. At this time of financial strain on our citizens, we urge that we all work together for the common good and to sustain our economy.”

Baldacci aides said unilateral action by the governor might be limited in the area of taxation.

“Several of these proposals would require the Legislature’s approval. We therefore stand ready to heed a call for a special session, to be held as soon as possible, to deal solely with these proposals and no other matters,” Bowles and Davis wrote.

The GOP leaders’ letter was seconded in a statement issued by the Maine Republican Party.