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Republicans in the state Legislature abandoned plans to use Ohio Department of Transportation's nonexistent cash reserves for a proposed 90-day gas holiday and instead will try to pass a bill with money from the general revenue fund paying for it.
The change is the result of ODOT's largest fund, for highway operating, not having money to cover the cost, which increased from an estimated $678 million to $726 million in just five days to cover the loss from the proposed 90-day state gas tax suspension plan.
Identical bills, with the changes, were introduced Monday by Republicans in the House and Senate. The state Legislature is planning to meet Wednesday to vote on the bill.
The change occurred after Pete LuPiba, spokesman for the Ohio Office of Budget and Management, said ODOT's highway operating fund has just under $1.6 billion in it with "no money in the account that is not planned for future projects."
The Republican-controlled Legislature on Sept. 23 called this week's special session to vote on the tax holiday at the behest of Vivek Ramaswamy, the GOP nominee for governor.
Ramaswamy said last week that the 90-day state gas tax suspension would cost the state about $678 million and come from ODOT money used for roads and bridges. If more money was needed, the state would next tap the surplus in the General Revenue Fund and, if needed, the state's $3.7 billion Rainy Day Fund. The money lost would be restored through the state retaining more money from fighting Medicaid fraud, Ramaswamy had said.
But Gov. Mike DeWine, a Republican, told reporters Monday that paying the money back by recovering it from Medicaid fraud wouldn't be enough to work.
The state's tax on regular gas is 38.5 cents a gallon and 47 cents on diesel. Drivers would still pay the federal tax of 18.4 cents a gallon.
Ramaswamy, who is in a tight gubernatorial race with Democrat Amy Acton, said last week that the record high for diesel is "what caused us to take action," as the cost for that results in higher prices for consumers at stores.
Ramaswamy unveiled his proposal about 6 1/2 hours after Amy Acton, the Democratic gubernatorial nominee, called for an emergency gas tax holiday in Ohio with diesel fuel prices hitting record highs and the cost for unleaded gas continuing to increase.
Ramaswamy said the 90-day suspension would save the typical family about $165 in savings while a typical independent semi truck driver would save $1,800 over the 90 days.
Regarding the 90-day suspension of the state's gas tax, a two-thirds vote is needed by both chambers for the bill to pass by emergency measure. That means 66 votes in the House. There are 64 Republicans, with Republicans looking to appoint one of their own to a vacant seat before the gas tax vote. If that occurs, and all Republicans show up for Wednesday's session, at least one Democrat would need to vote in support of the bill for it to pass by emergency.
It's less of an issue with the Senate with 22 votes needed and Republicans having 23 members, with one vacancy, to nine for Democrats though with absences and possibly Republicans going rogue, support from the other side of the aisle could be needed.
If the two-thirds majority vote isn't reached in both chambers, the bill wouldn't take effect for 90 days.
Also, DeWine would have to sign the bill into law. If DeWine vetoes the bill, both chambers would need three-fifths majorities for an override.
DeWine said using the ODOT money was a bad idea. DeWine said he is in favor of providing relief to the high price of gas, but it has to be the right fit.
Gas prices have increased since the United States went to war with Iran seven months ago, despite President Donald Trump saying in March it would be a "short-term excursion." Also contributing to the increase of diesel fuel is Ukrainian drone attacks on Russian oil refineries.
The average price in Ohio on Monday for a gallon of regular gas was $4.3153 and $6.7309 for diesel fuel.
When Ramaswamy and Republican leaders announced plans for a gas holiday last Wednesday, the average price of regular gas in Ohio was $4.4566 a gallon and $6.8167 a gallon for diesel - the latter being a record high.
A year ago, the average price in Ohio for a gallon of regular gas was $2.8746 and $3.668 for a gallon of diesel.