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Mayor: State took street money

By Maggie O'Brien
WORLD-HERALD STAFF WRITER

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Omaha's increasingly pock-marked streets could be even bumpier this spring because of a change in the state's gasoline tax formula.

The city is estimating it will lose $2 million in gas tax revenue — a major funding source for pothole repairs, resurfacing and other street maintenance work, Mayor Jim Suttle said this morning.

"This is money that is needed right now," Suttle said at the city's street maintenance facility near 52nd and Dayton Streets.

Suttle called a press conference to provide an update of the city's snow removal efforts.

The Christmas storm dumped 11.5 inches on the city, and Omaha has received a record 24 inches of snow so far this month.

That total doesn't include the flakes that were falling this morning.

Suttle thanked city crews for "helping our city get back on its feet as quickly as possible.''

The one-two punch of the December storms has put the city $1.6 million over budget on snow removal.

Suttle said the city needs help from the Nebraska Legislature.

Last year, the Legislature approved a bill that changed the fuel tax formula and increased the tax by 1.2 cents, while taking advantage of federally earmarked roads funding.

City Finance Director Pam Spaccarotella said in approving the bill, lawmakers changed the tax from a fixed rate to a sales tax based on the wholesale price of gasoline.

At the time of the vote, gas was about $2.44 a gallon.

Since then, gas prices have dropped to as low as $1.83 a gallon, Spaccarotella said. That has delivered a hit to the city's share of gas tax revenue.

The bill became law July 1. City public works officials couldn't convince lawmakers to leave the gas tax alone.

"It was supposed to be revenue neutral," Spaccarotella said of the bill. "Nobody knew the price of fuel would decrease this much."

Suttle asked the public to contact state senators to change the gas tax formula back to a fixed rate.

"It is money that would help patch potholes, which we will begin doing as soon as the streets are cleared of snow," the mayor said. "It is money that would help with street resurfacing."


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