High fuel prices also hitting taxpayer-fueled government vehicles

[June 08, 2022]  By Greg Bishop | The Center Square

(The Center Square) – Illinois taxpayers getting hit by high gas prices are also paying higher prices when governments fuel up taxpayer-funded vehicles.

Illinois Municipal League Executive Director Brad Cole said municipal governments with frontline services across the state are feeling the price at the pump.

“When a citizen sees a municipal vehicle going by, those are all using gas and they are all paying more just like the taxpayer is and the taxpayer has to pay that too,” Cole said.

In Springfield, Budget Director Bill McCarty said they tried to budget ahead, expecting gas prices to increase.

“Now I’ll be honest with you, none of us saw gas prices going up to the degree that they’ve gone up and it is a bit alarming to us,” McCarty said.

The price of gas has doubled since January 2021. Illinois’ prices are higher because of layers of federal, state, sales and sometimes local taxation on each gallon of gas. Illinois’ average to start the week was $5.40 a gallon, according to AAA. Across the river in Missouri, the average price was $4.45 a gallon. The national average Monday was $4.85.

An official with the city of Peoria said the city has adjusted the fuel budget to reflect the increase in fuel costs.

A BP gas station in Cary, Illinois on June 4, 2022.
The Center Square

“As we are currently in the middle of our fiscal year budget development, we have adjusted our fuel budget to reflect the increase is fuel costs,” the Alton mayor’s office said. “So while we aren’t pleased with the increased cost of fuel, we technically are not over budget.”

McCarty said Springfield’s share of state sales taxes that Illinois consumers pay on top of the price of fuel may provide some cushion.

“Remember, sales tax is a percentage of the cost of anything, so as gas prices go up, the taxes being paid on that will go up as well, which will offset some of the fuel expense for our city vehicles,” McCarty said.

But, Cole said the double whammy on taxpayers won’t completely offset the added taxpayer cost.

“In this case, everybody has to pay more, so no municipality is happy right now that gas prices are so high that they’re going to get more revenue on those gas pumps,” Cole said. “No local elected official is happy about this cost increase at the gas pump right now.”

Cole and McCarty recommend less and more efficient use of vehicles, including avoiding discretionary use of vehicles and even implements like lawn mowers.

Greg Bishop reports on Illinois government and other issues for The Center Square. Bishop has years of award-winning broadcast experience and hosts the WMAY Morning Newsfeed out of Springfield.