Haslam: Gas tax overhaul needed, but not right now - WRCBtv.com | Chattanooga News, Weather & Sports

Haslam: Gas tax overhaul needed, but not right now

Posted: Updated:

By ERIK SCHELZIG
Associated Press

NASHVILLE, Tenn. (AP) - Governor Bill Haslam says declining gas tax revenues will be a major problem facing the state over the next decade.

But the Republican governor told reporters on Monday that he doesn't plan to introduce any proposals to overhaul the system in the upcoming legislative session.

Haslam said in recent budget hearings that while it's encouraging that cars are becoming more fuel efficient, that trend also means the state stands to collect less from its 21.4-cent tax on each gallon of gas.

Transportation Commissioner John Schroer said in the hearing that he has met with the heads of the House and Senate transportation committees about the issue.

Schroer told the governor that officials must "figure out before it's too late how we're going to systematically fund transportation in the future."

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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