April 28 , 2008
Dear Fellow Nebraskans:
I am very concerned about high gasoline and diesel prices and their impact on Nebraska’s economy. These high prices – between $3.40 to 3.70 a gallon and diesel over $4 a gallon – are impacting every Nebraska family’s budget.
Transportation costs are a necessity for a family as they drive to work every day. That’s why I vetoed the Legislature’s proposed gas tax increase during this year’s legislative session. With food prices rising and healthcare costs soaring, now was not the time for a gas tax increase. Unfortunately, the Legislature overrode my veto.
Gas taxes fund roads projects in our state and many Nebraska communities are concerned about how future road projects will be funded. I understand their concerns, but at this time additional gas tax increases are not the answer.
Working with Senator Fischer and Senator Heidemann, we were able to develop compromise legislation that will use $15 million from the state’s Cash reserve Fund to pay for several highway improvement projects that have already received some federal funding. This investment will help ensure that progress is made on some of our road construction needs without relying on consumers to shoulder the full burden of future increases in the gas tax.
Nebraska has a roads infrastructure funding challenge that requires input from Nebraska citizens. I have pledged to work with legislative leaders to develop solutions that will help provide for a more stable funding system for roads projects in the future.
A key element of that funding is for the federal government to continue to be a full partner in funding America’s infrastructure needs. Funding roads should continue to be a priority for the federal government.
It is clear to me that with escalating prices at the pump, Nebraska’s gas tax can’t go much higher. Individuals and families are already making adjustments to compensate for higher fuel prices. The impact of higher gasoline and diesel prices is having a significant impact on businesses and our agriculture industry. Farmers and ranchers are very concerned about the impact high energy costs on their bottom line. Profits for small and large businesses alike are being hurt by high gas prices.
That’s why it is critical that America reduce its dependence on foreign oil. America needs to become more energy efficient and more energy independent. Our dependence on foreign oil impacts our economy as well as our national security. I’m pleased Nebraska is playing apart in reducing our dependence on foreign oil by expanding our ethanol industry.
Nebraska’s ethanol production capacity has expanded from 675 million gallons a year ago to 1.3 billion gallons today. By the end of this year, our ethanol production is expected to exceed 2.4 billion gallons a year.
That progress has helped many small rural communities expand their economy. That’s good news for Nebraska and good news for America.
