Budget Concerns Rise as Braun Extends Gas Tax Relief
INDIANAPOLIS — Relief at the pump is staying in place for Indiana drivers after Governor Mike Braun announced Wednesday that he is extending the state’s gas tax suspension.
The decision keeps fuel costs lower for local commuters, though prices still vary across the metro area. At a Wawa gas station near 86th Street, regular gasoline hovered around $3.45 per gallon, while drivers at a Marathon station on 71st Street and Georgetown Road paid $3.69.
Local drivers expressed a mix of appreciation and caution regarding the current prices.
“I’m happy that they’re at $3.45 now,” said driver Kirsten Cotner while filling up. “They definitely could be lower.”
For others, high fuel costs have forced changes in daily routines.
“Whenever I’m out doing something, I have to make sure I get everything done so I don’t have to keep going out and keep spending money on gas,” said Marcellus Martin.
Governor Braun initially suspended the state excise and usage taxes on gas back in April, blaming the war in Iran. His latest executive order extends the relief for another 120 days, invoking energy emergency powers tied to Canadian wildfires and oil market disruptions caused by the war in Ukraine. Braun noted he will reevaluate the situation every 30 days.
“This is hitting people that deal with it as a kind of a must-have in their budget,” Braun said during the announcement. “So, to me, it’s the best way to help the people that need it the most.”
By using an energy emergency order, the governor bypassed formal legislative approval—a maneuver that surprised political experts and created friction within the Statehouse.
“That’s a federal-level issue, but it impacts the governor and Hoosiers and their perception of cost at the pump,” explained Dr. Laura Wilson, a political science professor at the University of Indianapolis. “So, he’s in a difficult position, but he keeps kicking the can down the road.”
The tax holiday has already resulted in roughly half a billion dollars in lost road funding. To offset the loss, Braun reached an agreement with legislative leaders to pull money from Indiana’s $5 billion budget surplus to keep infrastructure projects on track.
However, political analysts warn that tapping into reserves carries significant risks.
“It’s always unpopular to dip into the reserves,” Dr. Wilson added. “Of course, it’s always unpopular to spend more money. So, I think it’s going to cause a little tension between the governor making these decisions and the legislature that will have to deal with the consequences.”
With upcoming budget negotiations on the horizon, lawmakers are expressing concern over the precedent being set.
“Now, our schools, our other facilities, our universities, pre-schools, and Medicaid will all now have to compete with road funding for their dollars,” said State Representative Ed DeLaney. “They’ve not had to do that because road funding has been isolated, taken care of from the gas pump.”
