Gavin Newsom gas-tax ideas get Fresno drivers closer to relief from pain at the pump

A few weeks back I wrote a column encouraging Gov. Gavin Newsom to suspend the gas tax and offer rebates to California motorists to take the sting out of our sky-high prices at the pump.

The governor just released his plan for doing those things, and, wouldn’t you know, he took much of my advice.

Actually, his focus is on average Californians. But the goal remains the same: help Californians deal with unprecedented costs while inflation is also rising. Assistance would come at a moment when the state is awash in a budget surplus estimated to be $45 billion.

The Legislature must approve Newsom’s plan, which is more generous to motorists than what Democratic leaders have proposed. Here is what the governor wants to do:

▪ Issue $400 debit cards per registered vehicle, with an $800 limit per motorist. How would I use my debit card? To buy gas, of course.

▪ Allocate $750 million in grants to transportation agencies across California so they can turn around and offer three months of free rides on buses and trains.

▪ Pause a part of the diesel sales tax for one year, at a cost of $600 million.

▪ Suspend the next inflation hike in the gas and diesel excise taxes, which are set for July. That would cost $523 million.

All told, the governor’s plan costs $11 billion. But that is easily covered by the surplus.

There is one big thing the governor’s plan does not do: suspend the gas tax itself. That 51 cents-per-gallon charge would remain. Republicans in the Assembly have been pushing to immediately suspend that tax.

The role of gas prices is significant in the San Joaquin Valley due to widespread poverty. This is one of the poorest regions in the country, with stubborn unemployment and lower-than-average wages. Many Fresno County residents must make tough choices on purchasing food, gas or rent. Fresno has had the fastest-rising rents of any city in the nation over the past year. And the city has a large number of farmworkers, who must drive significant distances to fields for their jobs.

Proposals by Democratic leaders are less helpful on fuel costs. They want to give each taxpayer and each dependent $200, except for the top 10% of earners, who would not qualify. The payments would be made whether a taxpayer has a vehicle or not. Democrat leaders put their plan in the context of helping California families deal with rising costs, and it would definitely do that. But it is not relief at the pump.

Record high for gas

As of Thursday, the average price for a gallon of unleaded gas in California was $5.88, a new record high. The national average stood at $4.23. California has the most expensive fuel in the nation. A year ago, California’s average price was $3.88.

Assembly Speaker Anthony Rendon, one of the Legislature’s leaders, represents the 63rd District, an area in Los Angeles County. On Thursday, drivers in that county were paying an average of $6.03 per gallon.

Ventura, Trinity and Inyo counties were also over the $6 per gallon mark. Remote Mono County, at $6.63, had the most expensive gas in California, and very likely the nation.

Suspending the gas tax would make fuel cheaper, assuming the oil companies pass the savings along. That would free up money for consumers to spend on other essentials.

A new poll by the Public Policy Institute of California found many residents are struggling right now. Thirty-five percent said they face serious financial hardship because of rising prices; 47% of lower-income residents say that is the case for them. Twenty-six percent are very concerned with not having enough money to pay rent or the mortgage.

Suspend the tax, back Newsom plan

Democratic leaders like Rendon support the gas tax because of how it raises money for road improvements. But that is where the surplus comes in. It is billions and billions of dollars. There is no reason not to do those roadway fixes. Spend surplus money on it, and keep the repair crews working (which is important to Rendon).

Fresno Assemblyman Jim Patterson likes Newsom’s proposal, but says the real win would be to marry it with a pause of the gas tax. Patterson, a Republican, said that when Maryland suspended its fuel tax, the savings was immediately passed onto to drivers.

“This is the first significant effort I have seen where the ruling party (Democrats) really understands there is a huge surplus, and the cost of living, including a huge spike in gas, is something they have to address,” he said.

Fresno’s other Assemblymember, Democrat Joaquin Arambula, was not yet ready to say which approach he favors.

Here’s my pitch: Back the governor’s plan, and suspend the gas tax. State government has more than enough money. It’s average Californians who need a break.