Braun directs state to reimburse local governments for gas tax revenue lost during emergency
Indiana Governor Mike Braun is directing his administration to make local governments whole for gas tax revenue missed during the state’s ongoing energy emergency — a move that addresses the funding shortfall Dubois County officials warned about last week.
At Braun’s direction, Secretary Lisa Hershman and the Office of Management and Budget will coordinate with the State Budget Agency and Department of Revenue to calculate how much local governments are owed. State Budget Director Chad Ranney will bring a formal request to transfer funds from the State Highway Fund — covering April and May — to the Board of Finance on July 21.
- Once approved, local governments are expected to receive distributions from the Comptroller’s Office within five to seven business days.
- Similar requests covering additional months will go before the Board of Finance in August and September as needed.
- The state expects all local governments to be made whole no later than November 1.
Dubois County officials estimated last week that the Dubois County Highway Department could lose as much as $800,000 over four months due to the suspended gas and excise taxes, with County Engineer Levi Leffert warning that mid-project funding cuts could lead to roadway deterioration and higher repair costs. The county council had discussed using Local Income Tax funds as a temporary bridge, with the expectation that the state would eventually reimburse the difference — a plan that now appears to align with the state’s announced timeline.
“This is only possible because Hoosiers demand commonsense fiscal management, and we’ve delivered,” Braun said in a statement. “We are running government more efficiently and as a result, we have the resources to offer tax relief while supporting local partners.”
Comptroller Elise Nieshalla said her office is committed to processing the distributions “accurately and without delay,” while State Treasurer Daniel Elliott called the reimbursement plan a way to make local governments whole “without negatively affecting Hoosiers.”
County and city leaders have cited a three-month lag in the distribution of gas tax revenue as a key uncertainty since those funds are paid monthly.
The state’s reimbursement plan initially covers April and May, suggesting the timeline tracks with though doesn’t fully resolve that lag concern, since it remains unclear how June and later months will be handled beyond the planned August and September Board of Finance requests.
