The Lead Off
- Gov. Mike Braun is directing the state to reimburse local governments for revenue lost during Indiana’s gas tax holiday.
- The State Board of Finance is expected to consider the first reimbursement request on July 21.
- State officials say local governments could begin receiving payments within a week of approval.
INDIANAPOLIS, IND. (WOWO) Gov. Mike Braun has directed his administration to reimburse Indiana local governments for gas tax revenues not collected during the state’s ongoing energy emergency, ensuring local units do not lose funding as a result of the temporary fuel tax suspension.
State officials said the reimbursement process will be coordinated through the Office of Management and Budget, the State Budget Agency and the Department of Revenue.
State preparing reimbursement plan
At the governor’s direction, Secretary Lisa Hershman and the Office of Management and Budget will work with state agencies to calculate the amount needed to replace gas tax revenues that would have otherwise been distributed to local governments.
State Budget Director Chad Ranney is expected to present a request to transfer money from the State Highway Fund covering April and May revenues during the July 21 meeting of the State Board of Finance.
If approved, the Indiana Comptroller’s Office expects to distribute the funds to local governments within five to seven business days.
Governor cites fiscal management
Braun said the reimbursement plan is possible because of the state’s financial position.
“This is only possible because Hoosiers demand commonsense fiscal management, and we’ve delivered,” Braun said. “We are running government more efficiently and as a result, we have the resources to offer tax relief while supporting local partners.”
State officials outline distribution process
Indiana Comptroller Elise Nieshalla said her office is prepared to process the payments promptly once the transfers receive approval.
“The Comptroller’s Office is committed to serving as a trusted partner to Indiana’s local governments by ensuring these distributions are processed accurately and without delay,” Nieshalla said. “We understand the importance of timely revenue distributions, and we remain focused on delivering taxpayer dollars with the transparency, accountability and fiscal stewardship Hoosiers expect.”
Indiana State Treasurer Daniel Elliott also voiced support for the reimbursement plan.
“As State Treasurer, affordability and lowering costs for Hoosiers while providing local units of governments the tools they need to operate has been my primary focus since day one. Governor Braun’s decision to suspend the gas tax was the right thing to do,” Elliott said.
He added that reimbursing local governments while maintaining tax relief demonstrates “what sound fiscal policies can accomplish.”
Additional reimbursements planned
State officials said additional reimbursement requests will be presented to the Board of Finance during its August and September meetings if needed.
The administration expects all affected local governments to be fully reimbursed no later than Nov. 1.
The Takeaway
- Gov. Mike Braun has directed Indiana agencies to reimburse local governments for gas tax revenues lost during the state’s temporary fuel tax suspension tied to the ongoing energy emergency.
- The first reimbursement request will go before the State Board of Finance on July 21, with payments expected within five to seven business days if approved.
- State officials say additional funding requests will be submitted as needed, with all local governments expected to be made whole by Nov. 1.
Next steps
The State Board of Finance is scheduled to consider the first reimbursement request on July 21. Additional transfers may be approved during August and September meetings, with the state aiming to complete all reimbursements before Nov. 1.
