Nebraska governor vetoes first fuel tax hike

April 4, 2008

Nebraska governor Dave Heineman vetoed the first of two proposed fuel tax hikes April 2, repeating the message he has maintained while senators debated and passed the budget bill, LB959: “Now is not the time for a gas tax hike.”

Heineman vetoed $14.5 million from the Department of Roads budget, an addition to the budget this year that would likely have meant a small fuel-tax hike, slightly over 1 cent per gallon, in July.

Nebraska governor Dave Heineman vetoed the first of two proposed fuel tax hikes April 2, repeating the message he has maintained while senators debated and passed the budget bill, LB959: “Now is not the time for a gas tax hike.”

Heineman vetoed $14.5 million from the Department of Roads budget, an addition to the budget this year that would likely have meant a small fuel-tax hike, slightly over 1 cent per gallon, in July.

The veto was the only change Heineman made to the budget. He applauded the Legislature’s mid-biennium budget changes as he signed the major budget bill and the state aid to education bill April 2.

He commended the “hard work” in delivering “a responsible and balanced budget.” He also complimented the Legislature’s controlled spending and their successfully maintaining a strong cash reserve.

The Legislature’s Appropriations Committee April 3 decided to try to override the veto. It takes 30 votes to do so. Last year, the governor vetoed a budget increase that would have triggered a gas tax hike, and senators did not attempt to get the 30 votes for an override.

Senators are also considering the LB846A bill, which could hike the fuel tax by an additional 3.3 cents per gallon. The measure won second-round approval April 2 but didn't get 30 votes. Supporters of the proposals said the increases are needed to help build and maintain roads. The bill is now at the final stage of debate in the Legislature and is a companion measure to a proposal, LB846, that would change the way the state computes a portion of the state gas tax.

Sponsor of the bills, Sen. Deb Fischer of Valentine, said that despite the recent veto, she intends to seek final legislative approval of both bills.

“Hopefully [Heineman] will look at LB846 as a tool that can be used to address the problem,” Fischer said.

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